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The Trump administration has announced the beginning of a planning process to allow for exploration and leasing in the Arctic National Wildlife Refuge, barreling forward with plans for destructive oil and gas drilling and disregarding the serious biological, cultural and climate impacts fossil fuel extraction will have in the rapidly-warming Arctic. Tomorrow's scheduled notice in the Federal Register will begin a 60-day public comment period.
The Department of the Interior has announced a Notice of Intent to initiate scoping for an Environmental Impact Statement on the proposed lease sale that would target the biologically rich coastal plain, an area of the Refuge the Indigenous Gwich'in people, who have subsisted off the land for millennia, consider sacred. Drilling would also imperil wildlife and harm our climate. Scientists have warned that to avoid the worst impacts of climate change, we must keep Arctic fossil fuel reserves in the ground.
The Trump administration's first action to advance drilling in the Arctic Refuge comes only months after oil industry allies in Congress snuck a drilling provision into the unrelated federal tax bill in December. Drilling proponents circumvented normal legislative channels because winning legislative or public support for such a controversial measure in an above-board process would have been otherwise impossible.
A broad coalition of environmental organizations reaffirmed its commitment to stand with the Gwich'in to defend the Arctic Refuge and the wildlife, wilderness, recreational and cultural values it was established to protect.
Statements
"We will continue to stand against any development in the calving grounds of the Porcupine Caribou Herd. My people have had a cultural and spiritual connection the herd for thousands of years. With climate change hitting Alaska harder than any other place in the world, this is the last thing we need. An Attack on the Arctic Refuge is an attack on the Gwich'in and we will stand strong in unity for our future generations. This is an uphill battle that we are willing to take on because it is tied to the identity of the Gwich'in people," said Bernadette Demientieff, Gwich'in Steering Committee Executive Director.
"Just because those lease sales are opened up doesn't mean they have to be invested in. We must continue to divest from fossil fuels. As stewards of the land since time immemorial, Indigenous people across the Arctic stand in solidarity in opposition to any further development in our ancestral places. We support our Gwich'in brothers and sisters in the fight to the continue the protection of Iizhik Gwats'an Gwandaii Goodlit, The Sacred Place Where Life Begins, for the best interest of everyone in the world, not just ourselves. We know we are all dependent on the land. It provides not only food security, but also has a direct correlation with our cultural identity, our spirituality, and our place in the universe. We're seeing a large misrepresentation of our people through corporate endeavors and would like to remind policy makers and the general public, that what these corporations are saying is from the for-profit, western lifestyle that we have been forced into. This is reality for us. This threatens who we are. This isn't putting up a new store, or investing in the stock market. This is our life. We all have to be good ancestors to our future generations. The land remembers. Our people remember." Native Movement - Alaska Board Members, Arlo Nasruk Davis (Selawik) and Adrienne Aakaluk Titus (Unalakleet)
"When we have an administration using Twitter to fire cabinet secretaries and rewrite plans for the entirety of America's coastline, maybe we shouldn't be surprised at the reckless, warp speed approach it is taking to put oil rigs in one of the most iconic and wildest places left in America," said Adam Kolton, Executive Director at Alaska Wilderness League. "But the Trump administration's secretive work with Senator Murkowski and others to 'aggressively' push for Arctic drilling is a disgrace. Forget minimal effort; they can't even be bothered to fake the effort needed to assess the impacts of leasing on wildlife and the environment or meaningfully consult with the Gwich'in people whose culture is at stake."
"Over the last 14 months we have seen this administration try to cut corners, revoke existing environmental protections, rescind conservation priorities, and overall threaten our public lands. Now, after an already scheming process to get the Arctic Refuge opened in the tax bill, they want to expedite a lease sale in the coastal plain. This is unacceptable. This is the 'sacred place where life begins.' We stand firmly with the Gwich'in Nation to protect the calving grounds of the Porcupine Caribou Herd and preserve a traditional way of life practiced for millennia," said Lisa Baraff, Program Director, Northern Alaska Environmental Center.
"This is about the Gwich'in people and one of our last, great wild places. But it's also about what our country wants for our future-- a race to the bottom dominated by drilling and greed, or the preservation of life, climate justice and our wild places for future generations. We stand with the Gwich'in Nation as we fight for a better world, starting with safeguarding the Arctic Refuge," said Alli Harvey, Alaska representative for Sierra Club's Our Wild America campaign.
"This Administration is barreling ahead with a fossil fuel extraction plan in the Arctic National Wildlife Refuge, despite the environmental and human rights implications of industrializing the wild birthing grounds of caribou upon which indigenous Gwich'in have relied for millennia, and the fact that investing in oil development in the Arctic takes us in exactly the wrong direction on combating climate change. Earthjustice stands prepared to uphold bedrock environmental laws that protect the Refuge's values and mount a strong defense of the Arctic Refuge and our climate," said Earthjustice attorney Erik Grafe.
"The coastal plain of the Arctic National Wildlife Refuge is a place of stunning beauty and tremendous biological value, providing vital habitat for caribou, polar bears and hundreds of migratory bird species. Most Americans oppose the Trump administration's headlong rush to drill and desecrate this sacred place, which will inevitably end up in court," said Jenny Keatinge, Senior Federal Lands Policy Analyst at Defenders of Wildlife.
"This administration is recklessly moving to lease the coastal plain of the Arctic Refuge, a land sacred to the Gwich'in people and one of the wildest places in our nation. The coastal plain is no place for oil and gas. We'll continue to stand with the Gwich'in and our partners and to use the law to protect this invaluable land," said Brook Brisson, Senior Staff Attorney at Trustees for Alaska.
"This administration is about to sell the Arctic Refuge to the highest bidder and turn one of America's premier bird nurseries into an oilfield. We cannot and will not allow drilling in the Arctic Refuge. Such a disastrous approach to managing our protected public lands threatens birds and robs our kids and grandkids of their natural legacy," said David Yarnold, president and CEO of the National Audubon Society.
"In its rush to drill America's Last Frontier, the Trump Administration is trying to sell leases in the iconic coastal plain of the Arctic National Wildlife Refuge as fast as they can, with no regard for why the refuge was created in the first place," said Geoffrey Haskett, President of the National Wildlife Refuge Association. "This race to drill flies in the face of the Arctic Refuge's true purposes such as conserving natural diversity and shows the disdain this administration has for the natural world."
"The Trump Administration's frantic scramble to sell oil leases in the coastal plain of the Arctic National Wildlife Refuge is a direct threat to the traditional lifestyle of the Gwich'in people and an assault on the wildlife and habitat of America's greatest intact natural heritage," said Dr. David Raskin, President of the Friends of Alaska National Wildlife Refuges. "It is a violation of the laws and requirements for management of this iconic refuge that belongs to every American, not just the oil industry and their political supporters."
"Interior's timeline is rash and unrealistic, given the laws and safeguards protecting sensitive public lands and wildlife. NRDC will ensure those protections are not violated with impunity," said Niel Lawrence, Alaska Director and Senior Attorney for the Nature Program at the Natural Resources Defense Council.
"By pushing for a lease sale next year, the administration is admitting that they have no intention of seriously evaluating the negative impacts of oil development on wildlife and these wild lands, which science tells us are significant," said Jamie Williams, president of The Wilderness Society. "The Wilderness Society remains opposed to opening the Arctic Refuge coastal plain to drilling. Local communities and the public's concerns should be fairly considered and addressed. Americans should be outraged at what is being done to the crown jewel of their National Wildlife Refuge System."
"First Republican leaders in Congress snuck a provision to destroy the Arctic National Wildlife Refuge into their disastrous tax bill - which Trump himself admitted they tried to keep secret because selling out one of our most majestic landscapes to the oil industry is deeply unpopular," said Alex Taurel, League of Conservation Voters Deputy Legislative Director. "Now Secretary Zinke is racing to transform this pristine wildlife refuge into an industrial oil field, apparently by waiving environmental review, planning, and local consultation that drilling supporters like Senator Murkowski assured would take place at each step in the process. We will continue to stand with the native Gwich'in people and work to block drilling every step of the way."
"Sinking drills into the refuge will drain the wild Arctic of its lifeblood. The habitat of polar bears, wolves, and caribou can't be trusted to the hands of oil companies," said Miyoko Sakashita, senior counsel at the Center for Biological Diversity.
"Take note of the phrase 'publicly owned.' Because the Arctic Refuge is your Arctic Refuge. This place, called the 'Crown Jewel of the Circumpolar North' is the home and birthing ground for an abundance of wildlife, from polar bears to the massive Porcupine Caribou herd, to the millions of birds that migrate to the Refuge. From six continents their migration connects these ancestral breeding grounds to every person on the planet. To the Gwich'in nation it's a human rights issue. The Gwich'in depend on the caribou for a subsistence way of life. A culture, passed down since time immemorial. They call the Refuge 'The Sacred Place Where Life Begins.' This is your land the oil companies want. It is a land sale. Call / contact your Congress people and tell them NO! NO drilling in our Arctic National Wildlife Refuge," said Carol Hoover, Executive Director of the Eyak Preservation Council.
"Each year, the Porcupine caribou migrate between Alaska and Canada's north. They are one of the last, healthy barren-ground caribou herds left on earth. Disturbing their calving grounds could have a disastrous effect on the health of the herd. This is not just an American issue. It's a deeply Canadian issue. We stand firmly with the Gwich'in as they fight to keep oil and gas development off the land that has sustained them for millennia." said Chris Rider, Executive Director of the Canadian Parks and Wilderness Society (CPAWS), Yukon Chapter
Reporter Resources
Memo: Trump administration pursuing overly aggressive timeline for Arctic Refuge drilling
Gwich'in Statement on the release of the Notice of Intent
Media Contacts
Alaska Wilderness League: Corey Himrod, corey@alaskawild.org, 202-266-0426
Audubon: Nicolas Gonzalez, ngonzalez@audubon.org, (212) 979-3100.
Center for Biological Diversity: Steve Jones, sjones@biologicaldiversity.org, 415-305-3866
Defenders of Wildlife: Haley McKey, hmckey@defenders.org, 202-772-0247
Earthjustice: Rebecca Bowe, rbowe@earthjustice.org, 415-217-2093
Eyak Preservation Council: Carol Hoover, carol@redzone.org
Friends of Alaska National Wildlife Refuges: Dr. David Raskin, davidcraskin@gmail.com 425-209-9009
Gwich'in Steering Committee: Bernadette Demientieff, bernademientieff76@gmail.com
League of Conservation Voters: Alyssa Roberts, aroberts@lcv.org, 202-454-4573
National Wildlife Refuge Association: Desiree Sorenson-Groves, dgroves@refugeassociation.org, 202-290-5593
Native Movement: Adrianne Titus, acct.nativemovement@gmail.com, 907-374-5950
Natural Resources Defense Council: Anne Hawke, ahawke@nrdc.org, 202-513-6263
Northern Alaska Environmental Center: Erica Watson, erica@northern.org, 907-452-5093
Sierra Club: Gabby Brown, gabby.brown@sierraclub.org, 202-495-3051
Trustees for Alaska: Dawnell Smith, dsmith@trustees.org, 907-433-2013
The Wilderness Society: Tim Woody, tim_woody@tws.org, 907-223-2443
Canadian Parks & Wilderness Society: Adil Darvesh, adarvesh@cpawsyukon.org, 867-393-8080, or alternately 867-332-0310
Earthjustice is a non-profit public interest law firm dedicated to protecting the magnificent places, natural resources, and wildlife of this earth, and to defending the right of all people to a healthy environment. We bring about far-reaching change by enforcing and strengthening environmental laws on behalf of hundreds of organizations, coalitions and communities.
800-584-6460"We must push back hard against these next leaps down the pathway to tyranny," said one Democratic in the House.
Facing a string of judicial rulings in recent days that have struck down or at least put on hold a variety of efforts by the Trump administration that appeared to overstep its executive authority, both Vice President JD Vance and billionaire oligarch Elon Musk on Sunday took aim at the power of judges by saying their powers—despite being the recognized co-equal and third branch of the U.S. government—should be curbed or disregarded.
"If a judge tried to tell a general how to conduct a military operation, that would be illegal," Vance tweeted Sunday morning, in a legally dubious post. Despite the claim, military generals are not free—either from laws of war, international human rights treaties, or chains of command—to do anything they please.
"If a judge tried to command the attorney general in how to use her discretion as a prosecutor, that's also illegal," Vance continued. "Judges aren't allowed to control the executive's legitimate power."
Shortly before Vance's tweet, Musk, the world's richest person and who has been tasked by Trump to run the Department of Government Efficiency( DOGE) effort to dismantle key government agencies and programs, floated the idea that life-time appointed judges should, based on a set annual quota, be subject to termination by the political party in power. Currently, both chambers of Congress and the White House are controlled by Republicans.
"I'd like to propose that the worst 1% of appointed judges, as determined by elected bodies, be fired every year," Musk said on Sunday morning. "This will weed out the most corrupt and least competent."
Over the last week, federal judges have intervened to block DOGE efforts to have unfettered access to a key Treasury Department payment system and also blocked the so-called "Fork in the Road" offer to federal workers put forth by the unsanctioned Musk-led team at DOGE.
After a U.S. District Judge Paul Engelmayer responded to a suit brought by 18 state attorneys general on Friday by blocking DOGE access to the Treasury system, Musk retweeted a message suggesting that the best thing to do might be to ignore the order.
Musk also called for Engelmayer's specific ouster. "A corrupt judge protecting corruption," Musk tweeted. "He needs to be impeached NOW!"
Outside critics, Democratic lawmakers, and legal experts responded with grave concern to the comments about judges by both Vance and Musk, arguably President Donald Trump's closest advisors.
After initial litigation losses for their illegal actions, Trump Admin now begins intimidating/attacking judiciary. Vance—ignore court orders. Musk—impeach “corrupt” judges. We must pushback hard against these next leaps down the pathway to tyranny.
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— Rep. Lloyd Doggett (@doggett.house.gov) February 9, 2025 at 3:19 PM
In an email to CNBC on Sunday, Duke Law School professor Marin K. Levy explained that the state attorneys general and the judge in the Treasury case "were all acting well within their authority. What we saw here was the judicial system working as it is supposed to."
Mondaire Jones, a former congressman from New York and now a commissioner on the U.S. Commission for Civil Rights, characterized Vance's comments as being part of the Trump-led "fascist movement in American politics."
In a Sunday morning appearance on "Face the Nation," Rep. Ilhan Omar (D-Minn.) said what the nation is witnessing with Trump allowing people like Musk to run roughshod over federal agencies—and now attacking the judiciary—is nothing short of a "constitutional crisis" and "full-scale authoritarian takeover."
"We are seeing an executive branch," said Omar, "that has decided they are no longer going to abide by the Constitution in honoring Congress' role in the creation of the agencies, in their role deciding where money is allocated. And so the only recourse we have—since our congressional leadership, the Speaker [of the House Mike Johnson], will not stop the executive—is through the judiciary."
We're witnessing a constitutional crisis and a full-scale authoritarian takeover.
The executive branch has decided they’re no longer going to abide by the Constitution.
However, our judiciary system is fighting back. One-by-one, we will stop this illegal government takeover. pic.twitter.com/MMFgrLlXVV
— Rep. Ilhan Omar (@Ilhan) February 9, 2025
"When you think about the checks and balances we have," Omar continued, "the courts are the only recourse we have at the moment. And when we talk about the illegality of what the executive branch is doing, we have seen every single executive order that has been challenged in the court we found to be illegal."
Omar said that fact, hopefully, will offer some solace to the "American people that our courts are working as they should. The checks and balances are working, but what is not working is the way the executive is behaving and the congressional leadership that is failing the American people."
"There's no reason to build this in Guantánamo unless you want to do things you don't think you could get away with on the U.S. mainland. It's easy to put tents in Florida. But they're putting them in Cuba. Ask yourself why."
Fears are growing that the offshore U.S. detention facilities at Guantánamo Bay, Cuba are an ominous sign for what President Donald Trump has in store as he further disregards the rule of law and normalizes actions that previously would have been unthinkable or faced immediate, bipartisan opposition in Congress.
After the first pictures emerged Saturday of still unidentified persons transferred to the island from the U.S. mainland by immigration officials, progressive journalist Nathan Robinson was among those raising the alarm, accusing Trump of "building a concentration camp and deliberately putting it where it is hardest to monitor or enforce the law."
The New York Times, alongside pictures of newly-erected tents taken by photojournalist Doug Mills, reported Saturday that the administration had already "moved more than 30 people described as Venezuelan gang members to the U.S. Navy base at Guantánamo Bay, as U.S. forces and homeland security staff prepare a tent city for potentially thousands of migrants." Mills was traveling Friday with Kristi Noem, the secretary of homeland security, as she made her first visit to the offshore site.
According to the outlet:
Ms. Noem visited the nascent tent camp, where the administration has suggested that thousands, perhaps tens of thousands, of migrants who pose lesser threats could be housed. She watched Marines rehearse how to move migrants to the future tent city, and she was shown a tent with cots and a display of basic items to be provided each new arrival — T-shirt, shorts, underwear and a towel — and then got an aerial view of the mission from a Chinook helicopter.
"The Trump administration," the Times reported, "has not released any of their identities, though they are believed to all be men, nor has it said how long they might be held at the island outpost."
According to critics like Robinson, "There's no reason to build this in Guantánamo unless you want to do things you don't think you could get away with on the U.S. mainland. It's easy to put tents in Florida. But they're putting them in Cuba. Ask yourself why."
On Friday, a coalition of more than a dozen rights groups—including the ACLU, National Immigration Law Center, and others—sent a letter today to the Department of Homeland Security (DHS), Department of Defense (DoD), and the U.S. State Department demanding Trump officials provide immediate access to those who have been transferred out of the country to the offshore facility.
In addition, the groups demanded to know:
"Sending immigrants from the U.S. to Guantánamo and holding them incommunicado without access to counsel or the outside world opens a new shameful chapter in the history of this notorious prison," said ACLU deputy director of immigrant rights Lee Gelernt. "It is unlawful for our government to use Guantánamo as a legal black hole, yet that is exactly what the Trump administration is doing."
Setareh Ghandehari, advocacy director of Detention Watch Network, said Friday that expansion of operations at Guantánamo "is especially alarming given its remote location and the decades-long documented history of abuse and torture there, which will only be exacerbated by the well-documented abuse inherent to the ICE detention system, including abuse, unsanitary conditions, and medical neglect. In no uncertain terms—lives are in jeopardy."
While previous administrations have exploited the land seized by the U.S. in Cuba to detain and process asylum seekers and migrants in the past, those were individuals interdicted at sea or prior to having ever set foot on American soil. The facilities have not been used to hold noncitizens deported from the U.S. mainland.
Last week, Slate's Mary Harris interviewed journalist Andrea Pitzer, author of "One Long Night: A Global History of Concentration Camps," who acknowledged that while many immediately think of Nazi Germany's death camps under Adolf Hitler when they hear the term "concentration camp," it is not wrong to describe the U.S. prison facilities at Guantánamo that way and for important reasons.
In her questioning, Harris posed to Pitzer how the existence of Guantánamo "doesn’t mean it’s going to become Auschwitz" necessarily, but that it does make "the road to Auschwitz more possible."
And Pitzer responded:
That's exactly right. And so what it means is even to do the most horrible things that humans have done takes time. It takes sort of a space and imagination and tools and resources. And the more of those kinds of tools and resources we line up in one place, the more room there is for the obscene or the perverted imagination to work. And even Auschwitz—keep in mind that it was 1933 when Hitler came to power and they started with concentration camps right out of the gate. So within the first weeks, Dakau is opened, though not quite in its final form, but it is already a camp and it takes almost a decade to get to even this final solution. And so, yes, absolutely, the Holocaust as we know it, as we remember it, has never been repeated. Nothing has come close to that. But you do not get to the death camps without having several years of Auschwitz, of Buchenwalds, of those beforehand.
"And right now," Pitzer said of Gitmo's legacy and the new purpose that Trump is giving it, "we have a place where there has been torture, we have a place where there has been riots, we have a place where there have been people held without trial for more than 20 years. And those are some of the most dangerous seeds that humanity can plant."
"The Holocaust as we know it, as we remember it, has never been repeated. Nothing has come close to that. But you do not get to the death camps without having several years of Auschwitz, of Buchenwalds, of those beforehand."
In a weekend column, the Philadelphia Inquirer's Will Bunch warned that even as much of the Trump administration's targeting of immigrants and refugees thus far should be seen as a "propaganda" exercise designed to titillate his base and antagonize his liberal opponents, the danger present by the Gitmo policy and others are very real.
"The bigger worry, " writes Bunch, "is that just because the cruelty of mass deportation is largely performative doesn’t mean these performances won’t scale up dramatically in the months ahead. Trump reportedly is already badgering his border czar, Tom Homan, and ICE to meet ambitious arrest targets, which would probably require crueler and more legally dubious measures that would fill those empty tents at Gitmo. If the president needs his phony war against a nonexistent border invasion to distract the American heartland from the coming evisceration of government services, the cruelty will become a bigger and bigger point."
Referencing the great Russian playwright's famous quote about the introduction of a gun onstage, Bunch opined that Trump's performative brand of governance does not mean the threat isn't real.
"You don't need Anton Chekhov," noted Bunch, "to understand that you don't build empty tents at Gitmo in Act One of your presidency unless you plan to fill them in Act Three."
Recent days have seen a full-frontal assault on the Consumer Financial Protection Bureau and Trump's favorite billionaire has much to gain personally if the agency no longer has the ability to operate effectively on behalf of the American people.
The Trump administration's multi-pronged attack on the CFPB continues.
President Donald Trump's new acting director of the Consumer Financial Protection Bureau, Russell Vought, told the agency to cease nearly all its operations in a series of orders on Saturday night and the move is not just a gift to the broader financial industry and large Wall Street banks, say critical observers, but also a major potential gift to billionaire Elon Musk, the world's wealthiest person, who has a major vested interest in the agency's demise.
Vought, the right-wing architect of the anti-government Project 2025 who also now heads the powerful Office of Management and Budget, confirmed Saturday night he had taken control of the agency in an email to staff that called on them to halt most of their work.
"Musk wants to use the government to put more in his pockets. This is a blatant conflict of interest." —Sen. Ed. Markey
According to reporting by NBC News, which obtained a copy of the email,
Employees were instructed to "cease all supervision and examination activity," "cease all stakeholder engagement," pause all pending investigations, not issue any public communications and pause "enforcement actions."
Vought also told employees not to "approve or issue any proposed or final rules or formal or informal guidance" and to "suspend the effective dates of all final rules that have been issued or published but that have not yet become effective," among other directives listed in the email.
He said in the email that the directives are effective immediately, unless he approves an exception or a certain activity is required by law.
The agency has been a target for Republicans for years and the party has contested in court its source of funding, which unlike most other agencies is funded by the Federal Reserve as opposed to regular appropriations by Congress. That mechanism, however, was established by Congress when the CFPB was created—an approach that was designed to shield it from political interference—and has withstood all legal challenges, including one before the U.S. Supreme Court last year.
Sen. Elizabeth Warren (D-Mass.), credited with bringing the CFPB to life, said the orders from Vought make clear the Trump administrations intentions.
"Vought is giving big banks and giant corporations the green light to scam families," Warren said Saturday. "The Consumer Financial Protection Bureau has returned over $21 billion to families cheated by Wall Street. Republicans have failed to gut it in Congress and in the courts. They will fail again."
Vought, in his online post, said he also informed Fed Chairman Jerome Powell on Saturday that the agency would be requesting $0 for the upcoming draw period, claiming that no additional funds were needed to fulfill its work.
"The Bureau's current balance of $711.6 million is in fact excessive in the current fiscal environment," Vought claimed. "This spigot, long contributing to CFPB's unaccountability, is now being turned off."
Critics point out that Musk, who has been appointed by Trump to head the Department of Government Efficiency( DOGE), has serious conflicts when it comes to the Trump administration's targeting of the CFPB.
DOGE is not a real department but has claimed sweeping authority to access the sensitive workings of federal agencies—triggering an avalanche of legal challenges as a result. In addition to Vought's statements, the previous CFPB acting director, Treasury Secretary Scott Bessent, last week issued an internal stop work order that was challenged by Democratic lawmakers.
On Friday, as Common Dreamsreported, Musk himself posted "CFPB RIP" on social media next to a picture of a gravestone and his detractors have argued his antagonism is not based solely on his ideological opposition to an agency that has returned over $20 billion to consumers over recent years from bad financial actors.
In an appearance Saturday on MSNBC, Lindsay Owens, executive director of the progressive advocacy group Groundwork Collective, explained that while Vought's targeting of CFPB can be explained by well-documented fealty to various corporate interests—and a desire "to destroy the government from the inside out"—Musk's motivations are likely "more sinister" and closer to home.
Elon Musk and Russ Vought have taken over the CFPB. That’s bad news for consumers.
Vought’s aim is to destroy govt from the inside out, and Musk's motive is more sinister. As he partners with Visa on a payment app, he has an interest in ensuring the CFPB doesn't get in his way. pic.twitter.com/C7FAFfG0xI
— Groundwork Collaborative (@Groundwork) February 8, 2025
Diminishing CFPB's ability to operate as well as getting a look at its trove of files, including the inner workings of those institutions it has been tasked with holding to account, said Owens, is a for Musk to "grease the skids for his new business interest."
"We know that Elon Musk is interested in starting his own payment app—he's partnered with Visa to do that," she explained, "and so he has a real interest in ensuring that the CFPB isn't blocking an effort like that."
Owens said that Musk's interest in the agency goes beyond that as well, because the CFPB has "trade secrets from enforcement actions against some of his likely future competitors."
On Friday, The American Prospect's David Dayen reported on the little-noticed Feb. 3 order that Bessent sent out to CFPB staffers which specifically halted new designation of non-bank entities, including "nondepository institutions," by the agency—a policy that could directly impact Musk's peer-to-peer payment venture he hopes to launch on X in partnership with Visa.
According to Dayen:
By stalling designation of nondepository institutions, Bessent ensures that X will not be designated for CFPB supervision, at least in the near term.
The more innocent explanation for the last-minute change is that Bessent was likely uninformed about what the CFPB does, and hastily added supervision later. But the inserted directive specifically bars designation of non-banks in the supervisory process, as a not-so-thinly-veiled shield for Big Tech payment app firms, and in particular the company run by special government employee Elon Musk.
Sen. Ed Markey (D-Mass.) expressed concerns along these grounds on Saturday night.
"Elon wants the CFPB gone so tech billionaires can profit from apps, like X, that offer bank-like services but don't follow financial laws that keep people’s money safe," charged Markey. "Musk wants to use the government to put more in his pockets. This is a blatant conflict of interest."