Union Files Lawsuits Amid Effort to Shutter CFPB, Provide DOGE Access to Records

What Happened?

A union representing dozens of federal employees filed two lawsuits amid attempts to shut down the Consumer Financial Protection Bureau and allow the Department of Government Efficiency access to sensitive company records.

Acting director Russell Vought reportedly ordered CFPB staff members to halt almost all of their work activity over the weekend in a series of issued directives.

Those directives included but were not limited to stopping pending investigations, not opening new investigations, halting stakeholder engagements, and refraining from issuing public communications.

President Donald Trump appointed the Senate-confirmed head of the Office of Management and Budget to run CFPB after firing Rohit Chopra from the previous Biden administration.

Employees were also informed that CFPB's headquarters building in Washington will be closed this week, according to NBC News.

One of the lawsuits filed by the National Treasury Employees Union argued 'that Defendant Vought’s directive to the CFPB’s employees to stop their supervision and enforcement work is unlawful.'

In response to DOGE, the union argued that access to the CFPB systems 'will be used to stop, lower, or otherwise modify their (employee) salaries and other benefits; to blackmail, threaten, or intimidate them.'

These alleged measures include the possibility of being prevented from obtaining future employment or denied goods and services such as loans and childcare.

'Once an employee’s personnel information is improperly disclosed, the harm to the employee cannot be undone,' the lawsuit added.

Why it Matters

The CFPB was established through the Dodd-Frank Wall Street Reform and Consumer Protection Act amid the 2008 financial crisis in the U.S.

This independent government agency acts to protect consumers from corporate fraud and aims to 'make consumer financial markets work for consumers, responsible providers, and the economy as a whole.'

According to reports, the CFPB has reportedly been an issue among many conservatives since its founding in 2011.

Some have pointed out issued regulations and rules that created burdens for many business entities.

Those who support the agency have reportedly applauded the return of tens of billions of dollars to consumers through its enforcement actions.

In 2024, a Supreme Court ruling upheld the constitutional validity of CFPB's funding structure after challengers argued it violated the Constitution's Appropriations Clause.

The Trump administration faces other legal challenges amid its recent attempts to keep 611 USAID employees after thousands of staffers were told they'd be placed on leave.

Federal unions challenging the actions have deemed them ‘unconstitutional' and have created a 'global humanitarian crisis.'

Billionaire Elon Musk, co-leading DOGE, has sparked a lot of criticism among peers on Capitol Hill in the efforts to shrink the government and address the nation's debt deficit.

How it Affects You

Congressional approval would still be required for many of these finalized measures.

But pressure is growing for Congressional members to stake a stand and answer if the president's recent moves are in fact legal.

The Supreme Court may ultimately get involved at a certain stage in some of these challenges.

This could all set up a showdown when it's time to vote on bipartisan measures in March when funding the government.