WASHINGTON – Russell Vought, the acting director of the Consumer Financial Protection Bureau, ordered staffers at the agency to stop all work in an email Saturday night.
“I am committed to implementing the President’s policies, consistent with the law, and acting as a faithful steward of the Bureau’s resources,” Vought wrote in the email reviewed by USA TODAY. “Effective immediately, unless expressly approved by the Acting Director or required by law, all employees, contractors and other personnel of the bureau shall… cease all supervision and examination activity.”
Employees were also directed not to start or continue investigations, to stop existing investigations, not to approve or issue any proposed rules or guidance and not to issue any public communications.
The directive comes after Vought, who was confirmed to lead the Office of Management and Budget this week, wrote on X on Saturday that he cut off new funding to the agency responsible for protecting American consumers.
The agency “will not be taking its next draw of unappropriated funding because it is not ‘reasonably necessary’ to carry out its duties,” Vought wrote.
The agency’s current funding of $711.6 million is “excessive,” he said. “This spigot, long contributing to CFPB’s unaccountability, is now being turned off.”
The new administration has been broadcasting the decision before Vought’s letter Saturday: Elon Musk, the tech billionaire leading Trump’s effort to pare down the size of the federal government, wrote on X on Friday, “CFPB RIP.”
Spokespeople for the Office of Management and Budget and for CFPB did not immediately respond to requests for comment Sunday.
The CFPB is an independent government agency responsible for protecting consumers in the financial industry, enforcing federal rules for financial institutions such as banks, credit unions and other lenders and debt collectors.
It was created in 2011 after the Great Recession and was the brainchild of Sen. Elizabeth Warren, D-Mass., who said in an X post Saturday that Vought is “giving big banks and giant corporations the green light to scam families.”
Democrats argued that Vought doesn’t have the authority to dismantle the agency that was created by Congress and signed into law by President Barack Obama.
“The CFPB is protected by law and we will fight to ensure it can continue to fight for consumers,” wrote Sen. Chris Van Hollen, D-Md., on X.
Before being tapped to lead the Office of Management and Budget, Vought was the vice president of the Heritage Action for America, and was one of the architects of Project 2025, a sweeping and controversial policy blueprint for Trump’s second term in office.
Contributing: Joey Garrison
(This story has been updated to add new information.)
Read More: Trump administration halts work at federal consumer watchdog CFPB