NEW YORK (AP) — The Trump administration has scaled back its plans to dismantle the Consumer Financial Protection Bureau, laying out a plan for an agency that would be significantly smaller than it was under President Joe Biden but still bigger than the one President Donald Trump envisioned right after he took office.
Under the new plan, the bureau's headcount would be reduced from 1,700 authorized employees before Trump’s second term to roughly 550 staffers. The administration originally intended to shrink the bureau's staff to around 200 employees.
The plan is opposed by the CFPB’s employee union and would likely require the approval of a federal judge. The new plan for the bureau was laid out in a memo and court documents this week in a lawsuit between the CFPB’s employee union and Russell Vought, Trump’s budget director and acting director of the CFPB.
The National Treasury Employees Union, which represents the bureau’s employees, said it is opposed to the staff reductions and would continue to oppose any changes to staffing levels.
“Vought’s insistence that CFPB can meet its statutory obligations with only one-third of the staff is laughable, and an insult to the intelligence of the judges. Everyone knows Vought doesn’t want CFPB to exist at all,” said Cat Farman, the CFPB’s union president.
The proposed job cuts were reported earlier by The New York Times.
While the union does oppose the staff reductions, the CFPB is facing a budgetary shortfall that the Trump administration argues requires the bureau to cut staff. Congress cut the CFPB’s operational budget by a little less than half in the One Big Beautiful Bill signed by Trump last year.
“It would be mathematically impossible to comply with the law without a workforce restructuring and reduction,” wrote Geoffrey Gradler, the bureau’s deputy director.
The proposed cuts at the CFPB would be broad-based if implemented. Roughly five out of six positions in the bureau’s supervision division, the part of the bureau that oversees bank’s compliance with federal banking and consumer protection laws, would be eliminated. Enforcement staff would drop by roughly four-fifths as well.
In President Trump’s second term, the CFPB has largely become inoperable. The bureau’s staff were told shortly after Trump was sworn into office that they should stop doing all work, and whatever work the CFPB has been doing has largely been directed at unwinding the work it did under President Biden and even the work it did in Trump’s first term in office.
The bureau was an early target of the Department of Government Efficiency, then run by Elon Musk, who posted on X that the CFPB should “RIP” shortly after DOGE employees became embedded at the agency. The administration then tried to lay off roughly 90% of the bureau’s staff, or roughly 1,500 employees, before a federal judge stepped in.
FILE - A security officer works inside of the Consumer Financial Protection Bureau (CFPB) building headquarters, Feb. 10, 2025, in Washington. (AP Photo/Jacquelyn Martin, File)
President Donald Trump said Thursday Pam Bondi is out as his attorney general.
Trump in a social media post named Deputy Attorney General Todd Blanche as the acting attorney general, though three people familiar with the matter have said he has privately discussed Lee Zeldin, the head of the Environmental Protection Agency, as a permanent pick.
It marks the end of a contentious tenure of a loyalist who upended the Justice Department’s culture of independence from the White House, oversaw large-scale firings of career employees and moved aggressively to investigate the Republican president’s perceived enemies.
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The Republican had only nice things to say about Bondi in an emailed statement, noting a drop in violent crime during her tenure and her Justice Department’s responsiveness to congressional oversight requests.
“The Judiciary Committee stands ready to advance President Trump’s next Attorney General nominee,” Grassley said.
The attorney general was facing a subpoena to appear before the House Oversight Committee on April 14 as lawmakers look into how the Department of Justice handled the release of the case files on Jeffrey Epstein.
The chair of the committee, Rep. James Comer, said in a statement that he would survey Republicans on the committee on whether they still wanted to enforce the subpoena.
Democrats quickly called on the committee to follow through on the subpoena. Rep. Robert Garcia, the top Democrat on the committee, said in a statement that Bondi “will not escape accountability and remains legally obligated to appear before our Committee under oath.”
Bondi was subpoenaed last month to appear before the Republican-led Committee on Oversight and Government Reform and face questions over the Justice Department’s sex trafficking investigation into Jeffrey Epstein and release of the related files.
Mace, who sits on the committee, said in a statement Thursday that Bondi “will be appearing” in two weeks because the “DOJ still hasn’t complied with the Epstein Files Transparency Act.”
Past attorney generals generally took pains to maintain an arm’s-length distance from the White House to protect the impartiality of investigations and prosecutions.
But Bondi postured herself as Trump’s chief supporter and protector, praising and defending him in congressional hearings and placing a banner with his face on the exterior of Justice Department headquarters.
She called for an end to the “weaponization” of law enforcement that she said occurred under the Biden administration, though her critics said she was the one who had politicized the agency to do the president’s bidding.
The Justice Department’s review and release of Epstein files frustrated members of Congress, who accused the department of hiding certain documents, over-redacting files and, in other cases, failing to redact sensitive information about the victims.
The department denied that it redacted documents in order to protect people and that it improperly withheld certain material. Still, it caused a series of headaches for the Trump administration.
“Thank you to President Trump for the trust and the opportunity to serve as Acting Attorney General,” Blanche wrote in a post on X, after saying that Bondi led the department with “strength and conviction.”
“We will continue backing the blue, enforcing the law, and doing everything in our power to keep America safe,” Blanche said.
Blanche is a former federal prosecutor who worked as Trump’s criminal defense attorney in two cases brought by the department under President Joe Biden’s administration.
He was also a key figure on the president’s defense team in the hush money case against Trump in New York.
Blanche became second in command behind Bondi at the Justice Department last year.
“We love Pam, and she will be transitioning to a much needed and important new job in the private sector,” Trump said in a post on Truth Social, after saying she’s been a “loyal friend.”
Trump said Deputy Attorney General Todd Blanche will serve as acting attorney general.
Republican Rep. Nancy Mace, in response to earlier reports that President Donald Trump was considering ousting Attorney General Pam Bondi, said in a statement Thursday: “I welcome it.”
“Bondi handled the Epstein Files in a terrible manner and seriously undermined President Trump,” said Mace in the statement, whose long been critical of the justice department over the release and review of the Jefferey Epstein files.
President Donald Trump said Thursday that Pam Bondi is out as his attorney general, ending the contentious tenure of a loyalist who upended the Justice Department’s culture of independence from the White House, oversaw large-scale firings of career employees and moved aggressively to investigate the Republican president’s perceived enemies.
The announcement follows months of scrutiny over the Justice Department’s handling of files related to Jeffrey Epstein’s sex trafficking investigation that made Bondi the target of angry conservatives even with her close relationship with Trump. She also struggled to satisfy Trump’s demands to prosecute his political rivals, with multiple investigations rejected by judges or grand juries.
The former Florida attorney general came into office last year pledging that she would not play politics with the Justice Department, but she quickly started investigations of Trump foes, sparking an outcry that the law enforcement agency was being wielded as a tool of revenge to advance the president’s political and personal agenda.
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FILE - Attorney General Pam Bondi speaks with reporters during a news conference at the Department of Justice, Nov. 19, 2025, in Washington, as Deputy Attorney General Todd Blanche, listens. (AP Photo/Mark Schiefelbein, file)
FILE - Deputy Attorney General Todd Blanche meets with reporters in Washington, Jan. 30, 2026. (AP Photo/J. Scott Applewhite, file)
FILE - Attorney General Pam Bondi testifies before a House Judiciary Committee oversight hearing on Capitol Hill in Washington, Feb. 11, 2026, in Washington. (AP Photo/J. Scott Applewhite, File)
