Legal Action

A coalition of federal government employee unions and nonprofits filed a lawsuit challenging the dismantling of the Consumer Financial Protection Bureau (CFPB). Upon returning to office in January 2025, President Trump expressed plans to eliminate the CFPB, and took the unprecedented action of replacing the director of the CFPB with his own appointee, Russell Vought. As Acting Director, Russell Vought issued a stop work order for all CFPB employees and instructed them not to return to the CFPB offices, as well as cut off federal funding for the department entirely. Vought has also taken steps to cancel $100 million worth of CFPB contracts and began arbitrarily firing CFPB employees. The plaintiffs in this case allege that Vought’s actions amount to dismantling the CFPB, and argue that such actions violate the Separation of Powers by eliminating an agency established by an act of Congress.