The Consumer Financial Protection Bureau (CFPB) is currently facing significant challenges due to the actions of Elon Musk’s Department of Government Efficiency (D.O.G.E). According to a report from Bloomberg, not everyone in President Donald Trump’s circle is happy about this situation.
Since assuming control in January, Elon Musk has eliminated hundreds of employees, halted investigations, and removed the agency’s name from its headquarters in Washington, D.C. President Trump has called this a victory, claiming that his administration has effectively shut down the CFPB.
However, behind closed doors, some of Trump’s top aides are reportedly concerned that Elon Musk is moving too quickly and that his aggressive tactics could lead to legal challenges. Russell Vought, who oversees the Office of Management and Budget and is also the acting CFPB director, has expressed concerns about D.O.G.E’s lack of discipline. He and other Trump allies fear that lawsuits could result and that the CFPB could survive if a judge intervenes.
It is worth noting that a spokesperson for Vought has denied the existence of any tensions, dismissing the reports as “false and just another ax-to-grind story against D.O.G.E.”
D.O.G.E has been actively reducing the CFPB’s influence without a clear plan. Elon Musk’s team has been dismantling various agencies within the federal government since Trump’s inauguration. D.O.G.E workers have terminated thousands of employees, canceled contracts, and eliminated programs that they believe do not align with Trump’s agenda. The Heritage Foundation’s Project 2025, a conservative blueprint for the government, called for the elimination of the CFPB, but Elon Musk has bypassed lawmakers entirely.
Currently, D.O.G.E employees are operating out of the CFPB’s basement, thoroughly reviewing agency contracts and determining which ones are mandated by law. They are searching for anything they can cut. When the D.O.G.E team first arrived, CFPB employees were taken aback. According to the report, it seemed as though the D.O.G.E team had no understanding of the agency’s purpose.
This confusion has not hindered their progress. Office leases are being reassessed, and oversight of major banks and fintech companies has come to a standstill.
Former CFPB Director Rohit Chopra has harshly criticized Elon Musk’s actions, stating that “Defunding the police that watches over Wall Street and Big Tech will cost consumers billions. The only ones who benefit from shutting down the CFPB are companies that break the law.”
As D.O.G.E fires workers across Washington, some government employees are reportedly taking legal action against the administration, albeit anonymously. A group of workers from the U.S. Agency for International Development (USAID) convinced a Maryland judge to allow them to sue the administration without revealing their identities. They expressed concerns about online harassment, job loss, and other potential repercussions.
Typically, federal courts do not permit plaintiffs to remain anonymous, except in cases involving sexual assault, minors, or extreme risks of retaliation. However, a judge has granted anonymity to two employees suing the Office of Personnel Management, allowing them to proceed as “Jane Doe 1” and “Jane Doe 2.”
The ruling, issued by Judge James Boasberg, acknowledges the plaintiffs’ legitimate concerns about physical and mental harm. Boasberg has also prohibited the administration from terminating any additional workers until early March.
While lawsuits against Trump’s executive orders have primarily come from labor unions, nonprofits, and advocacy groups, individual workers are now taking a stand.
Many are afraid of Elon Musk’s online attacks, as he directly targets bureaucrats to his extensive audience on X. One of his posts, in which he referred to USAID as a “criminal organization” that “needs to die,” garnered 33 million views.
The battle over the CFPB also involves digital payments. The CFPB regulates payment companies, and Elon Musk has long criticized its interference in private businesses. Now, with his plans to transform X into a dominant player in the payments industry, removing the CFPB provides him with an open playing field.
The CFPB was established under Barack Obama and took on major corporations like Walmart and Capital One under Joe Biden. However, it is currently operating at a minimal capacity. Former Director Vought’s stop-work order has suspended the agency’s largest division, which focuses on consumer financial oversight. As a result, investigations into credit cards, mortgages, and the housing market have come to a halt.
There are also allegations that Trump’s administration is attempting to delete sensitive CFPB records. According to Bloomberg’s report, a former chief technologist at the agency filed a legal complaint, claiming that officials were on the verge of erasing a financial database containing crucial regulatory information. A federal judge has temporarily blocked the deletion, although the duration of the order’s validity is uncertain.
Senator Elizabeth Warren, one of the original creators of the CFPB, is now pushing back. She has scheduled a hearing for Tuesday to showcase the agency’s accomplishments for consumers and has personally invited Elon Musk to attend. As of the time of this report, he has not responded to the invitation.