On October 27, 11 democratic senators from the U.S. Senate Committee on Banking, Housing, and Urban Affairs released a letter expressing concern over CFPB Acting Director Russell Vought’s recent public statement that he intended to “close down” the CFPB “within the next two or three months.” The letter described the comments as “particularly concerning given that a federal court has specifically blocked” leadership from closing the CFPB, and pointed out statements made by the administration in litigation stating that the CFPB would remain open.
The letter cited a March 28 preliminary injunction order (covered by InfoBytes here) entered by the U.S. District Court for the District of Columbia preventing the CFPB from taking actions regarding its employment, contracts and facilities. The U.S. Court of Appeals for the District of Columbia Circuit vacated this preliminary injunction, finding that no final, reviewable agency action had occurred (covered here).
The senators also highlighted that the acting director had allowed the fiscal year to pass without requesting any funding for the CFPB, a move described as “unprecedented” and one that makes it difficult for the Bureau to fulfill its statutory obligations.
The senators requested responses to three specific questions no later than October 31. The three questions related to the balances of the CFPB fund and the CFPB civil penalty fund, and whether the CFPB has any plans for reductions in force or winding down work in the coming months, requesting any applicable memorandum related to any such plans.
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