On April 10, 2025, Russell Vought, the Director of the Office of Management and Budget (OMB), participated in a cabinet meeting at the White House in Washington, D.C.
Nathan Howard | Reuters
The inspector general of the Federal Reserve is currently investigating the Trump administration’s efforts to terminate almost all employees of the Consumer Financial Protection Bureau (CFPB) and to cancel the agency’s existing contracts, according to information obtained by CNBC.
The inspector general’s office informed Senators Elizabeth Warren, D-Mass., and Andy Kim, D-N.J., that they are addressing the senators’ request for an investigation into the consumer agency’s new leadership actions, as explained in a letter dated June 6, which CNBC reviewed.
Acting Inspector General Fred Gibson noted in the letter, “We had already started reviewing the workforce reductions at the CFPB” in response to a previous request by lawmakers. “We will expand our review to include the canceled contracts of the CFPB.”
This letter verifies that significant oversight bodies in the U.S. government are scrutinizing the rapid changes occurring at the bureau after Russell Vought, the acting head of CFPB under Trump, assumed command in February. Vought instructed employees to halt activities, while he and members from Elon Musk’s Department of Government Efficiency aimed to terminate most of the agency’s workforce and end contracts with external vendors.
This led Senators Warren and Kim to request that the Fed’s inspector general and the Government Accountability Office (GAO) review the legality of Vought’s actions and their impact on the CFPB’s objectives. The GAO informed the lawmakers in April that they would look into the issue.
Senator Kim stated to CNBC, “As Trump dismantles essential public services, an independent inspector general investigation is crucial to comprehend the harm inflicted by this administration at the CFPB and ensure that it can continue its mission of protecting the public and holding companies accountable for wrongdoing.”
The Fed’s inspector general office operates as an independent entity overseeing the Fed and CFPB. It holds the authority to review agency documents, issue subpoenas, and conduct interviews. The office can also refer criminal cases to the Department of Justice.
Shortly after taking office, Trump dismissed over 17 inspectors general from various federal agencies. However, Michael Horowitz, the Justice Department’s IG since 2012, escaped this dismissal and has recently been appointed as the incoming watchdog for the Fed and CFPB.
Horowitz, who will begin his new duties at the end of this month, has reportedly received praise from Trump allies for identifying issues with how the FBI managed the investigation into Trump’s 2016 campaign.
In the meantime, the future of the CFPB is dependent on a forthcoming decision from a federal appeals court. Judges have temporarily stopped Vought’s plans to lay off employees, but they are now reviewing the Trump administration’s appeal concerning its intentions for the agency.
