CFPB faces major staff reductions under Trump administration

The Trump administration has filed a federal court request to cut more than half the remaining staff at the Consumer Financial Protection Bureau (CFPB), representing a notable retreat from earlier plans to eliminate up to 90 percent of the agency's workforce, reports the New York Times. Acting Director Russell Vought, who also directs the White House Office of Management and Budget, submitted a restructuring plan proposing to retain just 556 of approximately 1,174 current employees, down from roughly 1,750 when President Trump began his second term.

While still significant, this reduction is far less aggressive than the administration's original goal of near-total elimination, largely due to repeated federal court interventions that blocked mass firings. The plan would dramatically shrink the bureau's supervision department from over 500 employees to just 77, and reduce the enforcement division, which has recovered nearly $20 billion for consumers, from 250 to 50 staff.

Notably, the regulations division, which handles rules for small-dollar lending and open banking, would retain 125 positions, signaling the administration's shifted priorities. Congressional action would still be required to fully close the bureau, which was established following the 2008 financial crisis.