The Consumer Financial Protection Bureau, which says it will run out of funds after Dec. 31, is preparing to transfer its remaining enforcement cases and litigation to the Department of Justice, sources say. The move follows earlier cuts to enforcement this year and raises the prospect of staff furloughs. Observers question whether DOJ can absorb the bureau’s caseload; Democrats and union leaders say the action weakens consumer protections.
CFPB Preparing to Transfer Remaining Enforcement Cases to DOJ as Funding Runs Out, Sources Say
The Consumer Financial Protection Bureau, which says it will run out of funds after Dec. 31, is preparing to transfer its remaining enforcement cases and litigation to the Department of Justice, sources say. The move follows earlier cuts to enforcement this year and raises the prospect of staff furloughs. Observers question whether DOJ can absorb the bureau’s caseload; Democrats and union leaders say the action weakens consumer protections.
08:42 AM, 11/21/2025Politics
WASHINGTON — The Consumer Financial Protection Bureau (CFPB), which the White House has declined to fund, is preparing to transfer all remaining enforcement actions and litigation to the Department of Justice because its budget is expected to be exhausted after December 31, four people familiar with the matter said.
The CFPB, which warned last week that it expects to deplete its remaining funds at the end of the year, still has pending lawsuits against companies including credit bureau Experian but dropped most active enforcement matters earlier this year. Agency spokespeople and Justice Department officials did not immediately respond to requests for comment.
Moving the CFPB’s cases to the DOJ is a major development in the current administration’s efforts to reduce the agency’s role. President Trump and acting CFPB director Russell Vought have said the bureau should be closed, despite a standing court order that blocks such an action. The bureau has warned staff that furloughs or temporary unpaid leave are possible once funds run out.
It is unclear whether the Justice Department has the capacity to absorb the CFPB’s caseload, particularly after a number of recent staff departures. If DOJ takes on the matters, case continuity and the agency’s enforcement priorities could shift.
The CFPB was created after the 2008 financial crisis to supervise consumer financial markets and is the only federal agency expressly empowered to enforce federal consumer financial laws. Since its establishment in 2011, the bureau says it has returned more than $21 billion to consumers harmed by illegal or deceptive practices.
Since its founding, the CFPB has faced persistent legal and political challenges from industry groups and Republican lawmakers who contend the agency exceeds its authority. Critics say this year's actions represent the closest the bureau has come to being effectively dismantled.
“This is Russ Vought’s latest illegal power grab in his ongoing plan to shut down the CFPB and protect CEOs instead of consumers,” said Cat Farman, president of the CFPB’s staff union, accusing the acting director of unlawfully withholding funding and urging Congress to act.
Democratic lawmakers have criticized the potential transfer as a benefit to predatory actors that could leave consumers more vulnerable to scams, fraud and unfair practices. Observers say the coming weeks will determine whether DOJ can absorb the cases and whether the bureau’s enforcement work will continue uninterrupted.
Reporting by Douglas Gillison.