WASHINGTON — Acting Consumer Financial Protection Bureau Director Russell Vought defended the Trump administration’s sweeping overhaul of the CFPB during often-contentious testimony Wednesday before the House Financial Services Committee, arguing the agency had become an unaccountable regulator that imposed unnecessary costs on consumers and businesses.
Vought, who also serves as director of the Office of Management and Budget, said the administration’s efforts to scale back the Bureau’s regulatory and enforcement activities have reduced economic burdens while restoring accountability to an agency he characterized as operating beyond congressional oversight. He pointed to a White House Council of Economic Advisers report that concluded CFPB regulations increased costs and restricted access to credit. Consumer advocates and outside analysts have disputed that report’s methodology and conclusions.
Dems Sharply Critical
Democratic lawmakers sharply criticized Vought, accusing him of undermining the CFPB’s mission of protecting consumers from abusive financial practices. Rep. Gregory Meeks (D-NY) told Vought he was “glad you are leaving,” while Rep. Maxine Waters (D-CA) the committee’s top Democrat, warned that congressional scrutiny of his actions would continue if Democrats regain control of the House.
GOP Praises Vought
Republicans on the committee praised Vought for reducing what they described as regulatory overreach and for reining in an agency they said had relied on politically motivated enforcement actions.
The hearing marked Vought’s first appearance before Congress as acting CFPB director, despite serving in the role for roughly 18 months. Lawmakers questioned him about the bureau’s sharp reduction in enforcement actions, the suspension of much of its supervisory work, the withdrawal of numerous guidance documents and regulations, and ongoing litigation over plans to significantly reduce the agency’s workforce.
Turnover Ahead
Vought’s tenure as acting director is expected to end Aug. 1 under the Federal Vacancies Reform Act. President Donald Trump has nominated former CFPB official and Capital One executive Brian Johnson to serve as the bureau’s permanent director, although the Senate has not yet scheduled a confirmation hearing.
