{"id":7152,"date":"2026-01-13T08:20:43","date_gmt":"2026-01-13T13:20:43","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=7152"},"modified":"2026-01-13T08:20:44","modified_gmt":"2026-01-13T13:20:44","slug":"judge-forces-white-house-budget-director-to-keep-consumer-bureau-on-life-support","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/judge-forces-white-house-budget-director-to-keep-consumer-bureau-on-life-support\/","title":{"rendered":"Judge Forces White House Budget Director to Keep Consumer Bureau on Life Support"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-full is-style-rounded is-style-rounded--1\"><img loading=\"lazy\" decoding=\"async\" width=\"1400\" height=\"717\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/01\/judge-forces-white-house-budget-director-to-keep-consumer-bureau-on-life-support.webp\" alt=\"\" class=\"wp-image-7153\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/01\/judge-forces-white-house-budget-director-to-keep-consumer-bureau-on-life-support.webp 1400w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/01\/judge-forces-white-house-budget-director-to-keep-consumer-bureau-on-life-support-300x154.webp 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/01\/judge-forces-white-house-budget-director-to-keep-consumer-bureau-on-life-support-1024x524.webp 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/01\/judge-forces-white-house-budget-director-to-keep-consumer-bureau-on-life-support-768x393.webp 768w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Begrudgingly, Russell T. Vought just requested $145 million from the Federal Reserve to keep the <a href=\"https:\/\/www.deeds.com\/articles\/mortgage-fraud-risk-rises-as-white-house-moves-to-banish-the-watchdog\/\">Consumer Financial Protection Bureau<\/a> \u2014 which he runs \u2014 alive. Barely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Only a few months of the CFPB\u2019s work will be covered by that $145 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Judge Amy Berman Jackson declared in a December 30, 2025 federal court order that Vought, CFPB acting director, has to keep requesting funds, as reported by <em>The New York Times.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI disagree,\u201d said Vought when writing the funding request.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Trying to Shut It Down<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Next month, the U.S. Court of Appeals for the D.C. Circuit will hear an appeal of the same judge\u2019s decision that Russell Vought cannot fire the CFPB staff completely out of existence.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Vought also directs the White House budget office. Under a Congressional deadline, Vought will need to vacate his acting director role at the CFPB by August 1.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, Vought appears to be working tirelessly to sabotage the agency he\u2019s been entrusted to lead. This is after a Trump-signed bill came into effect that cuts the allowable CFPB funding almost by half. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Normally, a CFPB director sends in funding requests multiple times a year. But Vought hasn\u2019t tried to request any funding at all over the past year. He\u2019s openly expressed a desire to shutter the CFPB. So far, the National Treasury Employees Union and others have fought Vought\u2019s plans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Vought has claimed that the Federal Reserve may no longer fund the consumer bureau \u2014 despite the fact that it\u2019s done so for years. The Justice Department pressed Federal Reserve leader Jerome Powell to confirm whether the Fed may be returning to profitability. If not, the CFPB cannot get funding from the Fed, Vought has insisted.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Is Vought There?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Last year, the Consumer Financial Protection Bureau lost its principal deputy enforcement director, Michael G. Salemi. Seeing \u201cno path\u201d to future effectiveness under the Trump administration, Salemi resigned on December 4, 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The administration halted so much work at the agency that Salemi saw no point in carrying out an essentially meaningless role.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Salemi\u2019s resignation was one of a string of departures from CFPB leadership. Former enforcement chief Eric Halperin was among the exodus that Salemi joined. Acting director Cara Petersen had already left, pointing to the way the agency\u2019s enforcement leadership was being stripped of its authority.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When Salemi left, no potential successor remained. Standing in the void, Vought took charge of the CFPB in February 2025. Vought has presided over staff cuts, and left parties to legal settlements in the lurch. \u200b<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Now?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The U.S. Court of Appeals for the D.C. Circuit will rehear the National Treasury Employees Union\u2019s case against Vought, beginning on February 24.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, CFPB watchers believe enforcement work will continue to slow down. Specifically:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The administration\u2019s funding cuts indicate that very few new legal actions will be opened. Most active court cases are being passed to the Department of Justice.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Corporations involved in litigation with the CFPB will get different government lawyers. They\u2019ll be looking at new negotiations and new timelines.\u200b<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The everyday work of enforcing consumer protections has largely been placed on hold. Current investigations have remained open at the CFPB, but personnel is scant. In December, more than 100 enforcement employees received reduction-in-force notices. \u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In short, cases are being shuffled off, settlements cancelled or upended, and investigations suspended. It\u2019s unlikely, then, that the CFPB can be an effective force in 2026. The loss of staff members and their institutional knowledge has left a vacuum that sets consumer rights back to a chaotic time in U.S. mortgage history.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Exactly Will We Lose, in the Absence of the CFPB?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If we lose the CFPB, we lose an entity that offers free, <a href=\"https:\/\/www.consumerfinance.gov\/f\/201503_cfpb_your-home-loan-toolkit-web.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">plain-language guidance<\/a> for people shopping for mortgages. The CFPB has also issued guidance for the use of algorithms, including AI. The CFPB explained how federal law demands transparency in loan application decisions \u2014 even when lenders use complex technology. Will we lose that guidance now? This is a major concern, given the hard-to-trace applications of algorithms to issue decisions that can make obtaining a deed possible or not.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ll also be losing a constant defender of ordinary deed holders. Congress established the CFPB to champion the rights of borrowers after the 2008 financial crisis pushed many home buyers into foreclosure. Since its formation, the CFPB\u2019s core mission has been working to prevent U.S. borrowers from being taken advantage of.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Consumer Financial Protection Bureau acts as a check on Wall Street financial giants. To date, it has forced these corporations to give nearly $20 billion back to customers through refunds and debt relief. That tells us a lot about what ordinary working people will lose if we lose the CFPB.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When the Cat\u2019s Away Look Out for Those Mice<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Federal Reserve and the CFPB have long worked in symbiosis, under the Consumer Financial Protection Act. The law directs the Fed to fund the CFPB \u2014 with an \u201camount determined by the Director to be reasonably necessary\u201d \u2014 quarterly. And the U.S. public never had to worry about that getting done in a reasonable way.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Financial companies now know \u201cthe cat\u2019s away\u201d at the CFPB. Consumer advocates say we\u2019ve entered a time of lessened accountability for corporations. It\u2019s hard to read that as anything but more risk for the ordinary individual investor or borrower.<\/p>\n\n\n\n<p class=\"has-accent-5-background-color has-background has-small-font-size wp-block-paragraph\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\"><em><strong>With federal oversight weakening, home buyers need to look out for their interests. Here are <\/strong><\/em><a href=\"https:\/\/www.deeds.com\/articles\/mortgage-fraud-risk-rises-as-white-house-moves-to-banish-the-watchdog\/#:~:text=How%20Home%20Buyers%20Can%20Protect%20Themselves%20If%20the%20CFPB%20Is%20Weakened\"><strong><em>practical steps mortgage borrowers and others can take to protect themselves<\/em><\/strong><\/a><em><strong>.<\/strong><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mortgage Fraud Makes Us All Poorer<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Mortgage fraud, as it happens, is rising. Fraud typically does rise as more investors take out multiple mortgages with multiple lenders. And this year\u2019s statistics show about a third of home sales going to&nbsp;<a href=\"https:\/\/www.deeds.com\/articles\/we-all-deserve-a-home-but-corporations-outbid-some-of-our-friends\/\">investor-buyers<\/a> rather than that ordinary individual investor or borrower.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When oversight is weakened, we all wind up paying. Manipulative or unfair lending practices cost us all.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The formation of the CFPB has directly impacted home buyers. It has helped keep mortgage costs in check. It has worked to level the playing field for lenders and borrowers. Without the CFPB having our backs, consumers have weaker recourse for lending mistakes, deceptions, or \u201cblack box\u201d decisions that can change our lives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For now, we look forward to the rehearing on February 24 by the full D.C. Court of Appeals. We\u2019ll keep our eyes on the legal actions. And we\u2019ll keep our readers updated on the status of our embattled consumer watchdog.<\/p>\n\n\n\n<div class=\"wp-block-group has-accent-5-background-color has-background has-small-font-size is-layout-flow wp-block-group-is-layout-flow\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<p class=\"wp-block-paragraph\"><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.nteu.org\/-\/media\/Files\/nteu\/docs\/public\/cfpb\/CFPBDismantle.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><em>National Treasury Employees Union, et al. v. Russell Vought<\/em><\/a> (PDF).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Stacy Cowley for <em>The New York Times<\/em>: <a href=\"https:\/\/www.nytimes.com\/2026\/01\/09\/us\/politics\/cfpb-vought-funds.html\" target=\"_blank\" rel=\"noreferrer noopener\">Russell T. Vought Requests $145 Million for Agency He Wants to Eliminate<\/a> (Jan. 9, 2026).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Caitlin Mullen\u2019s \u201cDive Brief\u201d for <em>BankingDive.com<\/em>: <a href=\"https:\/\/www.bankingdive.com\/news\/vought-concedes-cfpb-funding-fed-powell-nteu-jackson\/809349\/\" target=\"_blank\" rel=\"noreferrer noopener\">Consumer Financial Protection Bureau \u2013 Vought Concedes on CFPB Funding<\/a> (Jan. 12, 2026). \u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Credit and Collection News<\/em> (a division of ELSOS\u00ae): <a href=\"https:\/\/www.creditandcollectionnews.com\/doj-wants-federal-reserve-chair-powell-to-weigh-in-on-cfpb-funding\/https:\/www.creditandcollectionnews.com\/doj-wants-federal-reserve-chair-powell-to-weigh-in-on-cfpb-funding\/\" target=\"_blank\" rel=\"noreferrer noopener\">DOJ Wants Federal Reserve Chair Powell To Weigh In on CFPB Funding<\/a> (Dec. 17, 2025).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Credit and Collection News<\/em> (a division of ELSOS\u00ae): <a href=\"https:\/\/www.creditandcollectionnews.com\/cfpbs-enforcement-chief-resigns\/\" target=\"_blank\" rel=\"noreferrer noopener\">CFPB\u2019s Enforcement Chief Resigns<\/a> (Dec. 7, 2025).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And as linked.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read more about: <a href=\"https:\/\/www.deeds.com\/articles\/heres-the-lowdown-on-mortgage-fraud-today\/\">Types of mortgage fraud<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Photo credit: U.S. government work. Executive Office of the President of the United States via Wikimedia Commons at <a href=\"https:\/\/picryl.com\/media\/white-house-press-briefing-47352440331-96fe72\" target=\"_blank\" rel=\"noreferrer noopener\">Picryl<\/a> (Public Domain Media).<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Begrudgingly, Russell T. Vought just requested $145 million from the Federal Reserve to keep the Consumer Financial Protection Bureau \u2014 which he runs \u2014 alive. Barely. Only a few months of the CFPB\u2019s work will be covered by that $145 million. Judge Amy Berman Jackson declared in a December 30, 2025 federal court order that [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7153,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[131],"tags":[2960,894,160,1192,1641,3196,3093,411,3091,690,2425,3195,3197],"class_list":["post-7152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-ai-in-lending","tag-cfpb","tag-consumer-financial-protection-bureau","tag-consumer-protection","tag-deed-holders","tag-federal-courts","tag-financial-regulation","tag-home-buyers","tag-lending-oversight","tag-mortgage-fraud","tag-mortgage-regulation","tag-russell-vought","tag-wall-street-oversight"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Judge Forces White House Budget Director to Keep Consumer Bureau on Life Support - Deeds.com<\/title>\n<meta name=\"description\" content=\"A federal judge orders Trump budget director Russell Vought to keep funding the CFPB\u2014despite his efforts to dismantle it. 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