The Trump administration, under the leadership of Acting CFPB Director Russ Vought and Chief Legal Officer Mark Paoletta, has taken aggressive steps to rein in the Consumer Financial Protection Bureau (CFPB), originally created under the Obama administration with the support of Sen. Elizabeth Warren (D-MA). Describing the agency as “woke and weaponized,” Trump officials have targeted what they view as regulatory overreach and politically motivated enforcement against American businesses.
The Trump-backed “Big Beautiful Bill” drastically cut the CFPB’s funding—normally sourced through the Federal Reserve—by nearly half. This funding reduction was part of a broader plan to dismantle what the administration has called a partisan tool used to punish disfavored industries, including financial services related to firearms and gig-economy platforms.
Since assuming control, Vought and Paoletta have moved to shut down more than 30 CFPB enforcement cases, many of which they say were based on ideology rather than law. Notably, the CFPB dropped a Biden-era investigation into Credova, a firearm financing company tied to Public Square. Paoletta pointed to timing and political targeting, citing the CFPB’s escalated legal demands on the same day Donald Trump Jr. joined the company’s board.
Walmart and Branch Messenger also saw cases dismissed related to contractor wage claims. Walmart said the “rushed lawsuit” was “riddled with factual errors,” and that the decision to drop the case was the right one. Similarly, a case against Navy Federal Credit Union over overdraft practices was scrapped, with the institution affirming compliance with all relevant regulations.
The administration has also implemented a sharp reduction in the CFPB’s travel budget—from $10 million to just $1 million—and pursued mass layoffs. A recent federal appeals court ruling allows the agency to proceed with plans to lay off over 1,400 staff members, fundamentally reshaping the CFPB’s footprint.
Russ Vought’s directive aims to eliminate “regulation by enforcement” and restore focus on liberty, due process, and economic freedom. Paoletta described internal resistance within the Bureau, saying Vought had to “take on the internal swamp of the enforcement team.” Moving forward, the CFPB is expected to roll back regulations and reporting burdens that it views as interfering with business growth and consumer choice.
The Trump administration’s effort to dismantle the CFPB marks a significant rollback of Obama-era regulatory infrastructure, aligning with a broader pro-business, pro-freedom agenda focused on limiting government overreach.
