WASHINGTON — The Trump administration is seeking to cut the workforce of the Consumer Financial Protection Bureau by more than half, to about 556 employees, under a revised plan outlined in court filings,
The proposal, submitted to the U.S. Court of Appeals for the District of Columbia Circuit, would reduce staffing from roughly 1,174 employees at the start of fiscal 2026, Bloomberg Law reported.
The plan represents a scaling back of earlier efforts to eliminate as much as 90% of the agency’s workforce, a move that courts had previously blocked, according to Reuters.
Reuters reported the new proposal would still shrink the agency by about two-thirds overall, but signals the administration no longer intends to fully dismantle the CFPB.
Cuts in Key Divisions
The cuts would significantly affect key divisions, including supervision and enforcement, which oversee banks and other financial firms, according to reporting cited by Newsmax.
As the CU Daily has been reporting, the CFPB, created after the 2008 financial crisis to oversee consumer financial protections, has been a frequent target of criticism from Republicans and industry groups, who argue it imposes excessive regulatory burdens. Critics of the cuts, including consumer advocates, have warned that reducing staffing could weaken oversight and enforcement.
New Funding Sought
As the CU Daily reported here, CFPB Acting Director Russell Vought has requested $75.8 million from the Federal Reserve to fund the agency’s operations through June, after a court ruled earlier that the administration must seek the funding.
