Fed Inspector General Investigates Trump Administration CFPB Cuts

The Federal Reserve's independent Office of Inspector General (OIG) is investigating the Trump administration’s efforts to dismantle the Consumer Financial Protection Bureau (CFPB), including significant workforce reductions and the cancellation of contracts. Senators Andy Kim and Elizabeth Warren, who played a key role in the CFPB's creation, requested this investigation to assess the legality of these actions and their impact on the agency's ability to fulfill its consumer protection mandate. Acting Inspector General Fred Gibson confirmed that the ongoing review, initially focused on workforce cuts, is now expanded to cover canceled contracts. The investigation follows moves by CFPB Acting Director Russell Vought, who instructed employees to halt work and sought to dramatically scale back the agency’s operations. The Government Accountability Office (GAO) is also examining the administration’s actions, including firings and dropped lawsuits against corporations, prompting bipartisan concern over the dismantling of vital consumer protections. Senators Kim and Warren emphasize that understanding the damage and ensuring the CFPB can continue its mission to protect Americans from scams is critical amid these drastic changes.