Trump Administration Plans to Cut Two Thirds of CFPB Staff

The administration of President Donald Trump has developed a new plan to reduce the workforce of the Consumer Financial Protection Bureau (CFPB) by approximately two-thirds. According to court documents filed on Tuesday, the administration is stepping back from previous efforts that sought to eliminate nearly 90% of the agency's staff. The Justice Department submitted the filing to the U.S. Court of Appeals for the District of Columbia Circuit, noting that the revised strategy demonstrates the administration does not intend to shut down the CFPB entirely, as a lower court had previously suggested. Representatives for the CFPB did not immediately respond to requests for comment. Under the proposed plan, the CFPB workforce would be cut to 556 employees in the United States, which is less than a third of its size at the beginning of the Trump administration. The cuts would disproportionately affect the Division of Supervision, which oversees banks and nonbank financial companies, with an 85% reduction in positions. The Division of Enforcement would see an 80% decrease in staffing. The Justice Department has requested that a lower court be allowed to consider lifting a stay that currently prevents the administration from implementing these staff reductions. Previously, the administration had been engaged in a legal battle to eliminate nearly all positions at the agency. Lawyers for an employee union and other critics have argued that such a move would be illegal and would hinder the CFPB from fulfilling its duties as mandated by Congress in 2010. Donald Trump and other high-ranking officials have frequently called for the outright elimination of the CFPB, accusing it of politicized enforcement and creating undue burdens for companies. Consumer advocates have rejected these arguments, characterizing the administration's actions as an illegal giveaway to corporate actors that would put the public at risk. The recent motion would pause a pending appeal before the full appeals court, where judges had previously shown skepticism toward the government's claim that it has the power to fire nearly all CFPB employees.