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Randi Spivak, Center for Biological Diversity, (310) 779-4894, rspivak@biologicaldiversity.org
A wide-ranging coalition of Indigenous communities from Southeast Alaska, businesses and conservation organizations filed a lawsuit today targeting the Trump administration's rollback of the federal Roadless Rule that protected the 17 million-acre Tongass National Forest, sometimes called America's Amazon.
Earthjustice and co-counsel Natural Resources Defense Council filed the lawsuit in federal court today on behalf of five Alaska Native tribes, Southeast Alaska small businesses and conservation organizations.
The shortsighted rollback jeopardizes the ancestral homelands of the Tlingit, Haida and Tsimshian people. Many Indigenous communities continue to rely on the Tongass for wild food harvesting and traditional lifeways. Removing forest protections will have staggering consequences for their culture and food security.
The Tongass is a champion at absorbing greenhouse gas emissions. Cherished as a crown jewel of the national forest system, the forest could serve as a cornerstone for a national climate strategy incorporating wild lands preservation for carbon sequestration. Eliminating the Roadless Rule across the Tongass opens some 9 million acres of irreplaceable forest to timber industry logging proposals. This could usher in a new wave of clearcutting, wiping out majestic, centuries-old trees and devitalizing a key buffer against climate change.
Gutting the Roadless Rule imperils unique wildlife and clean waters and threatens the livelihoods of commercial fishing families and small businesses in tourism and recreation. The Tongass produces some 25% of West Coast salmon and attracts millions of visitors from throughout the world.
Spokespeople from Alaska Native communities, Alaska-based small businesses and conservation groups issued the following statements:
"We are deeply concerned about the protection of the Tongass National Forest, where our ancestors have lived for 10,000 years or more," said Joel Jackson, tribal president of the Organized Village of Kake. "We still walk and travel across this traditional and customary use area, which is vast and surrounds all of our communities to the north, south, east and west. It's important that we protect these lands and waters, as we are interconnected with them. Our way of life depends on it."
"The process used to create the Roadless Rule exemption was flawed, said Lee Wallace, president of the Organized Village of Saxman. "The U.S.D.A ignored its trust responsibilities to tribes, failed to engage in meaningful consultation, ignored widespread opposition to the exemption, and favored the State of Alaska with $2 million in unlawful payments. This lawsuit is necessary to protect Tlingit and Haida peoples' way of life and resources--not just for today but for future generations."
"The need for this litigation is a mark of shame upon the federal government for violating the trust and responsibilities it has to the Indigenous peoples of the Tongass. It is equally a stain upon the state of Alaska, which colluded with the Trump administration to circumvent scientific analysis to achieve a desired political outcome," said Robert Starbard, tribal administrator of the Hoonah Indian Association. "Hoonah Indian Association accepted the USFS invitation to join the Tongass Roadless Rulemaking process as a cooperating agency believing that the federal government would approach the effort consistent with the intent of National Environmental Policy Act and sought inclusion of the special expertise and relationship the tribes possess of the lands occupied since time immemorial. We ultimately withdrew as a cooperating agency when it became clear that our involvement was purely to provide political cover and lend legitimacy to a corrupted process with a preordained outcome. The Roadless Rule decision is fatally flawed and ignores the advice and expertise of the tribal cooperating agencies and omits significant issues and concerns."
"The Tongass Forest is my home. Home to the ancient Tlingit and Haida Indigenous Nations. It is where my ancestry originates, my bloodline is Indigenous to this land, its DNA is my DNA," said Kashudoha Wanda Loescher Culp, a Tlingit activist and Tongass coordinator for the Women's Earth and Climate Action Network. "The air we breathe, the water we depend on, the land we live upon, all pristine. It is a life to cherish. It is a way of living worth fighting for. The repeal of the Roadless Rule will only lead to the destruction of our homelands, and subsequently the destruction of our communities who depend upon the abundance of the forest. This is an attack on our peoples and the climate. The Trump administration's decision to open the Tongass to roads, logging and mining is an underhanded misuse of congressional authority and the battle will go on--we will continue to rise in defense of our homelands."
"The Tongass National Forest is Southeast Alaska's SeaBank, providing annual dividends in fish, wildlife, and recreation as well unmatched ecosystem services that include water regulation, provisioning, habitat and cultural wealth," said Linda Behnken, commercial fisherman and executive director of Alaska Longline Fishermen's Association. "SeaBank's natural capital produces economic outputs worth several billion dollars per year to residents, visitors and society as a whole--and it will generate that output every year, provided we take care of the underlying natural capital of the forest, estuaries and ocean. Southeast Alaska's future depends on safeguarding the natural capital that sustains our economy and cultural identity. It is time for decisionmakers to see the forest for more than the board feet."
"The Boat Company is a small cruise vessel eco-tour operator that provides hundreds of visitors each year with scenic views of southeast Alaska's coastlines, fjords and forests," said Hunter McIntosh, president of The Boat Company. "I cannot overstate the importance of inventoried Roadless areas to Southeast Alaska's tourism and recreation economy. The Roadless Rule ensures these irreplaceable lands will remain protected and continue to draw visitors from throughout the globe. Remoteness, wildlife and scenery form the main visitor attractions in southeast Alaska and bring in over a million visitors annually."
"Southeast Alaska hosts two-thirds of all Alaska visitors, making it the most visited region of the state," said Dan Blanchard, CEO of UnCruise, a small vessel company providing outdoor recreation experiences. "Forest Service lands, particularly inventoried Roadless areas, are critical to drawing these visitors, and generate roughly $245 million annually--over two-thirds of Tongass National Forest visitor spending. We depend on the ability to market and provide unique recreation experiences, and our clients expect to see 'wild' Alaska and prefer intact natural landscapes. Clearcutting and timber road construction would force us to divert our travel routes to avoid seeing or being around clearcuts. This would negatively affect the outdoor recreation economy and Southeast Alaska's reputation as an adventure travel destination."
"As Southeast Alaskans are keenly aware, the public process around the Alaska-specific Roadless Rule, in which the Trump administration exempted the Tongass from the Roadless Rule itself, was flawed from the start," said Meredith Trainor, executive director of the Southeast Alaska Conservation Council. "The Southeast Alaska Conservation Council has always gone to court to fight to save the places we love, and we are honored to do so today in partnership with Tribal leaders and other partners from the conservation community. We will work to reinstate Roadless Rule protections for our forest in the early days of the incoming Biden administration, even as we challenge the Record of Decision from the dark days of Trump, in court."
"Like so many of this administration's environmental rollbacks and anti-environment policies, Trump's rushed Tongass roadless rulemaking ignored sound science and public input at every step," said Andy Moderow, Alaska director at Alaska Wilderness League. "Old-growth forests play a vital role in helping to slow climate change. The Tongass alone stores hundreds of millions of metric tons of CO2 and sequesters millions more annually. The complete removal of roadless protections on the Tongass will only worsen the climate crisis, not to mention fragment wildlife habitat and destroy salmon runs. We're joining our partners to fight this extreme rollback and preserve some of the most intact expanses of temperate rainforest remaining in the world."
"Alaskans, both statewide and those living in the region that includes the Tongass National Forest, commented in overwhelming numbers against removing or weakening any Roadless Rule protections for the Tongass," said Becky Knight, president of the regional organization Alaska Rainforest Defenders. "They recognize the many causes for protecting the Tongass' ecosystem integrity which is largely dependent on the sanctity of its roadless areas, and which are the reason for this lawsuit."
"Preserving the Tongass is a matter of survival. It is essential to the subsistence culture and food security of Indigenous peoples. As one of the planet's major carbon sinks, it is also essential for mitigating the climate crisis that threatens us all. We hope today's action will bring renewed protections for the Tongass and those who depend on it," said Andrea Feniger, Sierra Club Alaska chapter director.
"The Trump administration's move to allow logging and road building in the wildest parts of the Tongass National Forest is wrong-headed and would have tragic consequences for the species that make it their homes," said Ellen Montgomery, director of public lands campaigns for Environment America. "The Tongass is home to trees older than our country and that old growth provides home to bears, wolves, salmon and hundreds of bird species. To come close to a goal of protecting 30% of our country's lands and waters by 2030, the nearly 17 million acres of the Tongass must be protected--and this effort to open it up for crass commercial gain does just the opposite."
"Stripping roadless protections for a shocking 9 million acres in the Tongass National Forest will pave the way for more old-growth clearcutting, destruction of wildlife habitat, and only add to our climate change and biodiversity loss woes," said Nicole Whittington-Evans, Alaska program director at Defenders of Wildlife. "We won't back down until the protections of the Roadless Rule are reinstated."
"The Trump administration's removal of roadless protections on the Tongass National Forest is arbitrary and reckless," said Karlin Itchoak, Alaska state director of The Wilderness Society. "Allowing logging and other industrial development in one of the most important old-growth rainforests in the world not only threatens centuries-old trees, but also jeopardizes one of the planet's most productive carbon sequestration strongholds and a critical tool for addressing the climate crisis."
"Trump's reckless plan to clearcut old-growth trees in the Tongass will irreversibly damage our climate, kill wildlife and devastate Southeast Alaska communities," said Randi Spivak, public lands program director at the Center for Biological Diversity. "We're in the midst of climate and wildlife extinction crises and the Tongass is a lifeline for our planet. We'll do everything we can to make sure this spectacular forest is protected."
"The Tongass National Forest is not only a climate stronghold for birds and other wildlife, its old-growth trees are the lungs of North America, serving a vital role in natural climate mitigation by absorbing carbon pollution from the atmosphere," said Sarah Greenberger, senior vice president of conservation policy at National Audubon Society. "At a time when a healthy climate must be a priority, destroying old-growth forests that are doing a fair share of the work is outrageous."
"The large roadless areas of the Tongass provide outstanding habitat for a remarkable diversity of wildlife. Stripping protections from this forest to allow for road construction, clear cut logging, and other destructive activities in the Tongass will degrade water quality, accelerate climate change impacts, and threaten local economies that rely on clean water," said Tracy Stone-Manning, associate vice president for public lands at the National Wildlife Federation. "The U.S. Forest Service ignored public input from Indigenous tribes, local communities and tens of thousands of people across the country, and it violated the law. The administration left us no choice but to go to court to protect this remarkable place for future generations."
"This lawsuit is a direct response to the outgoing administration's attempt to open Alaska's Tongass National Forest to a new round of devastating clearcuts in some of the most important remaining old-growth habitat in the forest," said Earthjustice attorney Kate Glover. "The Trump administration ignored tribes and Alaskans throughout this process, and is instead prioritizing illusive timber industry profits over the interests of Alaska Native people who have stewarded the land since time immemorial, small business operators whose livelihoods depend on an intact forest ecosystem, and everyone who benefits from this national forest's unique ability to serve as a natural buffer against climate change."
"We're challenging an outrageous assault on America's environment and all those who benefit from it, now and in future generations," said Niel Lawrence, senior attorney for the Natural Resources Defense Council. "The Roadless Rule is a landmark achievement in conserving our natural heritage, our climate, and our public resources. It put an end to taxpayer-subsidized clearcutting of our last best wildlands. We're not going to let Trump get away with this illegal effort to strip America's great temperate rainforest of these vital protections."
At the Center for Biological Diversity, we believe that the welfare of human beings is deeply linked to nature — to the existence in our world of a vast diversity of wild animals and plants. Because diversity has intrinsic value, and because its loss impoverishes society, we work to secure a future for all species, great and small, hovering on the brink of extinction. We do so through science, law and creative media, with a focus on protecting the lands, waters and climate that species need to survive.
(520) 623-5252"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."