Newly-confirmed Office of Management and Budget Director Russ Vought was named CFPB acting director Friday evening—assuming the position from Treasury Secretary Scott Bessent. 

Saturday, Vought tweeted he had notified the Federal Reserve that “the CFPB will not be taking its next draw of unappropriated funding because it is not ‘reasonably necessary’ to carry out its duties.” It would take an act of Congress to abolish the CFPB, but stopping funding in effect paralyzes the bureau; the CFPB receives its funding through the Fed, rather than through the congressional appropriations process. 

According to reports, Vought also sent an email to CFPB staff notifying them that the bureau would:

• Not approve or issue any proposed or final rules, formal or informal guidance;
• Suspend the effective dates of all final rules that were issued or published, but had not yet become effective. Bessent gave a similar order to suspend these efforts temporarily, though Vought’s is to suspend them indefinitely;
• Not commence, take additional investigative activities related to, or settle enforcement actions;
• Not open any new investigation in any manner, and cease any pending investigations;
• Not issue public communications of any type, including publication of research papers and compliance bulletins;
• Not approve or execute any material agreements, including related to employee matters or contractors;
• Not make or approve filings or appearances by the bureau in any litigation, other than to seek a pause in proceedings. Then-acting director Bessent filed a motion to stay litigation related to America’s Credit Unions’ challenge to the bureau’s overdraft rule, as well as a similar motion in the bureau’s medical debt lawsuit, last week;
• Cease all supervision and examination activity; and
• Cease all stakeholder engagement.

On Friday afternoon, Elon Musk, who’s serving as head of the Trump Administration’s Department of Government Efficiency (DOGE), tweeted “CFPB RIP”—indicating what may be to come at the bureau. This follows on reports of DOGE employees being embedded in the CFPB earlier in the week.

“As we navigate the uncertainty, America’s Credit Unions is zealously advocating for credit union interests,” said America’s Credit Unions Chief Advocacy Officer Carrie Hunt. America’s Credit Unions will keep credit unions informed of the bureau’s efforts; tomorrow’s Advocacy Update Webinar (free to members, closed to press) will discuss these recent developments and their impact on credit unions.