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russ vought
Dismantling the Consumer Financial Protection Bureau Hurts US Consumers
Congress can’t allow the White House to eliminate an agency that’s helped millions of Americans, with billions of dollars returned to them by scams, fraudsters, and megabanks that prey on low-income citizens.
Feb 20, 2026
Over the past year, the Trump administration has sought to gut the Consumer Financial Protection Bureau through cuts and layoffs, and by hamstringing its enforcement powers, claiming the agency is hurting large banks through overregulation. Acting CFPB Director Russ Vought has sought to reduce the agency's staff by 90% and to freeze spending since February.
A group of 21 states, plus the District of Columbia, sued the Trump administration in December to stop it from defunding the CFPB. The administration responded by telling the court that the government is legally barred from seeking new funding from the Federal Reserve, the bureau’s primary source of money, alluding to the fact that the agency will eventually go broke later this year. The next step in the case will be the DC Court of Appeals to hear arguments in late February.
The CFPB's enforcement actions, like the 22 pending cases against banks, highlight its vital role in safeguarding consumers from unfair practices, which the current threats jeopardize.
So, what does this mean for the country? The CFPB's weakening could leave consumers vulnerable to predatory practices, unfair fees, and fraud, risking their financial stability.
The Biden administration's pressure on banks and financial institutions on the issue led them to agree to refund more than $240 million to customers, a win secured by actual, formal regulation. Trump and Vought have rolled that back, too.
The CFPB’s Small Dollar Rule was created to curb abusive payday lending practices, especially repeated debit attempts that drain bank accounts and trigger cascading overdraft and Non-Sufficient Funds (NSF) fees. That goal is sound and worthy. The problem is not the rule’s intent, but how it operates alongside bank fee structures and in a financial marketplace devoid of smart, progressive-minded credit options.
The small dollar rule makes automatic repayments—which help keep the cost of borrowing to the bare minimum—incredibly tricky to execute. After two consecutive failed payment attempts, covered lenders generally cannot try again unless the borrower specifically authorizes another attempt, which can leave payments stalled when ordinary life disruptions intervene. Regulators have warned that charging multiple NSF fees tied to re-presented transactions can harm consumers. This is true not just because a single missed payment can still trigger NSF fee collection and financial harm, undermining a rule meant to protect borrowers acting in good faith. It’s also because lenders are now further limiting credit to the most high-risk borrowers, including gig economy workers, who are also those most in need of emergency credit, forcing them to borrow via ultra-expensive bank and credit union overdrafts and NSFs. And when payments are not made, inevitably, borrowers’ personal credit ratings take a hit. Of course, this affects poor people and those with bad credit harder than anyone else.
Trump and Vought's shuttering of the CFPB without fixing this situation, including by pushing banks hard to provide credit to consumers at lower cost and even by standing up a viable alternative to current credit options through something like Postal Banking, would make the problem of high-interest debt worse for Americans. Moreover, because Trump and Vought refuse to act against extortionate overdraft and NSF fees, as the Biden administration did, they’re exposing consumers to high-cost debt, where they effectively borrow from the bank, too. The Biden administration's pressure on banks and financial institutions on the issue led them to agree to refund more than $240 million to customers, a win secured by actual, formal regulation. Trump and Vought have rolled that back, too.
The CFPB has largely helped people when they have problems with a financial institution, product, or transaction by allowing customers to submit complaints, which the agency then works on their behalf. Since its inception, 98% of the 9 million total complaints have received “timely responses” from the institutions or companies to which customers reported them to the CFPB. Of all the complaints, almost 400,000 were submitted by US military members, and nearly 200,000 were submitted by seniors.
The results have been staggering. CFPB data as of December, 2024 shows a whopping $21 billion has been returned to more than 205 million Americans who were financially harmed by institutions. In addition, over $5 billion in civil penalties have been imposed on guilty banks and individuals.
Congress can’t allow the White House to eliminate an agency that’s helped millions of Americans, with billions of dollars returned to them by scams, fraudsters, and megabanks that prey on low-income citizens. And if the Trump administration is determined to do so, it’s time for congressional Democrats to focus on developing credit alternatives that can allow consumers to escape some of the financial madness.
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Media Faces Reckoning After Helping Trump Downplay Project 2025 on Campaign Trail
"A Trump denial is not a fact," said one media critic.
Oct 03, 2025
As President Donald Trump openly embraces Project 2025, mainstream media outlets are facing criticism for their role in helping him downplay his ties to the wildly unpopular far-right governing playbook in the lead-up to his reelection last year.
After she became the Democratic nominee in July, former Vice President Kamala Harris made the Heritage Foundation's over 900-page manifesto for “the next conservative president” central to her case against Trump during the 2024 election, often referring to it as "Trump's Project 2025."
She and other Democrats warned that if he retook power, he would swiftly enact many of its most extreme and unpopular proposals and dramatically expand executive power while doing it.
Among those proposals were steep cuts to social safety net programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP), the "mass deportations" of millions of immigrants, the elimination of the Department of Education, new restrictions on abortions, the gutting of climate protections, and the replacement of career civil servants with political appointees, among many others.
Democrats amplified the plan's danger at the Democratic National Convention and in campaign ads, and Trump began to distance himself from the platform. Despite the fact that as many as 140 people who'd worked in his first administration—including Paul Dans, Heritage's director of Project 2025—had a hand in its creation, Trump said: "I know nothing about Project 2025. I have no idea who is behind it."
This was demonstrably untrue, even at the time. Media Matters for America dug up a clip from as far back as May 2023 of Dans stating that "President Trump's very bought in with this," speaking of the program.
Project 2025 was almost inconceivably unpopular. An NBC News poll from September 2024 showed that while 57% of registered voters viewed the plan negatively, just 4% viewed it positively.
But in the critical months leading up to the election, many media outlets took Trump's denial at face value, publishing fact checks and other commentary that painted Democrats' warnings about his connection to the plan as alarmist or misleading.
Responding to a social media post in July stating that "Trump has made his authoritarian intentions quite clear with his Project 2025 plan," a fact check by USA Today rated the statement "false," because, as the headline said, "Project 2025 is an effort by the Heritage Foundation, not Donald Trump."
In September, after Harris confronted Trump about Project 2025 at the first and only debate between the two, the paper published another fact-check with the headline: "Harris repeats claim that Project 2025 is Trump's plan. That's still not right."
In response to Harris' claim during the debate that Project 2025 was "a detailed and dangerous plan... that the former president intends on implementing if he were elected,” Washington Post fact-checker Glenn Kessler, whose coverage received a fair bit of criticism during the 2024 cycle, reported in bold text that "Project 2025 is not an official campaign document."
A CNN fact check of the Harris campaign's social media in September remarked that one account "frequently invokes Project 2025," before caveating that "Project 2025 is not Trump’s initiative, and he has said he disagrees with some of its proposals."
In an October interview on CBS's "Face the Nation," anchor Norah O'Donnell, Harris attempted to warn about Project 2025, before O'Donnell responded: "You know that Donald Trump has disavowed Project 2025. He says that is not his campaign plan."
After nine months back in power, the website Project 2025 Tracker estimates that Trump has already implemented approximately 48% of the objectives outlined in the policy document.
In addition to his key campaign promises many of his second administration's policies are highly specific to Project 2025, such as his pledge to abolish the Federal Emergency Management Agency (FEMA), his efforts to privatize the National Weather Service (NWS), his reconfiguration of Title X funding to promote pregnancy, and his elimination of the Office for Civil Rights and Civil Liberties.
Trump is no longer hiding his connection to Project 2025, having brought in many of its hiring picks and authors to staff his administration almost immediately after his victory last November.
This week, he began to boast about it openly. As his Office of Management and Budget (OMB) director, Russ Vought, one of Project 2025's architects, began using the current government shutdown to unilaterally cut off funding to infrastructure projects in blue states and cities, Trump lauded him as "he of PROJECT 2025 Fame."
"This was always the plan," Harris responded on social media.
While many commentators expressed outrage that Trump blatantly lied about his connections to Project 2025, others dredged up old clips of newspapers and anchors taking him at his word.
"All those 2024 media fact checks that said, 'Donald Trump and the Trump campaign deny any connection to Project 2025' look pretty ridiculous right now," said MeidasTouch editor-in-chief Ron Filipkowski. "A Trump denial is not a fact. You just used his lies to 'debunk' a reality that was obvious to anyone paying attention."
Mehdi Hasan, the founder of the independent media company Zeteo, highlighted the CBS interview, saying Trump's embrace of Project 2025 was "embarrassing not just for Norah O'Donnell but a whole host of leading American anchors and reporters who echoed Trump’s false denials."
"Nothing showed the difference between mainstream and independent media better than the response to Trump’s obvious lie about not knowing anything about Project 2025," said David Pepper, author of the book Saving Democracy: A User's Manual. "Most mainstream media started fact-checking those who claimed a connection to be somehow false. Others 'both sides'ed' it. Far more in independent media called it out as a whopping lie."
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As Musk Attacks CFPB, GOP Lawmakers Take Aim at Overdraft Rule—A Gift to Wall Street
"This is just the latest broken promise from Republicans, who have used their short time in power to already cater to special interests over hardworking Americans," said one watchdog leader.
Feb 18, 2025
A U.S. watchdog group on Tuesday slammed Republicans in Congress for trying to kill the Consumer Financial Protection Bureau's overdraft rule as U.S. President Donald Trump and billionaire Elon Musk target the CFPB as a whole.
The Accountable.US statement came in response to Senate Banking Committee Chair Tim Scott (R-S.C.) and House Financial Services Committee Chair French Hill (R-Ark.) recently introducing a Congressional Review Act (CRA) resolution to overturn the rule that capped most overdraft fees at $5, which was finalized in December, near the end of the former President Joe Biden's term.
"Overdraft fees affect a huge portion of American families with 17% of households with checking accounts paying overdraft or [nonsufficient funds] fees in 2023," Accountable.US noted. "This action would open the door for $35 overdraft fees—a decision that would cost American households an average of $225 each year."
The watchdog's executive director, Tony Carrk, declared that "undoing the CFPB's overdraft fee rule is a gift to big banks and a gut punch to the wallets of millions of Americans across the country."
"Deceitful and excessive overdraft fees cost Americans billions of dollars every year, but the Trump administration and Republicans in Congress don't seem to care any longer about lowering costs for Americans now that they're in charge," he continued. "This is just the latest broken promise from Republicans, who have used their short time in power to already cater to special interests over hardworking Americans."
When the Republican chairs introduced their CRA resolution last week, Scott called the Biden-era CFPB rule an example of the "pursuit of political headlines over sound policies," and Hill described it "midnight rulemaking" and "another form of government price controls that hurt consumers who deserve financial protections and greater choice."
Meanwhile, when the CFPB finalized the rule, the agency said that it "took action to close an outdated overdraft loophole that exempted overdraft loans from lending laws." At the time, the bureau was still directed by Biden appointee Rohit Chopra, who highlighted that large banks' exploitation of the loophole had "drained billions of dollars from Americans' deposit accounts."
The rule "was scheduled to become effective in October," but "because of acting Director Russ Vought's unlawful order stalling all CFPB work, the effective date has been suspended," The American Prospect reported Monday. "If Congress passes the CRA resolution, the overdraft rule could not come back in any 'substantially similar' form. So it matters if congressional Republicans decide to support allowing banks to impose additional junk fees worth billions of dollars."
The outlet also pointed out that "because CRA resolutions cannot be stopped by a filibuster, they represent some of the most likely legislative actions of the early Trump term," given Republicans' narrow majorities in Congress."
It's not just the rule that's in jeopardy; the entire agency is at risk. Trump and Musk, the leader of the president's Department of Government Efficiency (DOGE)—though perhaps not on paper—are working to gut the federal workforce and slash spending, and they have the CFPB in their crosshairs.
An agreement reached Friday in federal court halted mass firings at the CFPB and barred the bureau and its temporary leader, Vought—who also leads the Office of Management and Budget—from purging data or defunding the agency while the case moves forward. However, Trump and Musk are expected to continue their effort.
"The same billionaires trying to kill the CFPB are the ones who profit off predatory loans, sky-high fees, and financial scams that target young people," Corryn G. Freeman, executive director of the youth-focused Future Coalition, said Monday. "The CFPB should be strengthened, not eliminated. If Musk and his allies succeed in gutting this agency, it will be open season on young consumers with no one left to protect them."
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