Key facts
- Acting CFPB Director Russell Vought testified before the House Financial Services Committee.
- Vought defended the Trump administration's reforms and argued the CFPB has exceeded its mandate.
- Democrats criticized Vought for allegedly weakening consumer protections and enforcement.
- A draft CFPB Reform Act of 2026 was discussed, aiming to increase oversight and accountability.
- Vought advocated for the CFPB to be funded through annual congressional appropriations.
- The agency is nearing completion of an open banking rule.
Russell Vought, the acting director of the Consumer Financial Protection Bureau (CFPB) and an appointee of President Donald Trump, faced sharp criticism from Democratic lawmakers during a House Financial Services Committee hearing. Vought defended his administration's efforts to reform the agency, arguing that the CFPB had exceeded its statutory authority and imposed unnecessary costs on consumers and financial institutions.
During the contentious hearing, Vought asserted that the agency's culture had been changed and that its operations were now significantly scaled back. He advocated for key reforms, including subjecting the CFPB to the annual congressional appropriations process rather than its current direct funding from the Federal Reserve, which he argued fosters a "cavalier attitude."
Conversely, Democratic committee members accused Vought of undermining the CFPB's mission by reducing staff, limiting investigations, and dismissing enforcement actions. They argued that these actions protect big businesses rather than consumers and that Vought, as an acting director, lacked the authority to make such sweeping changes. Rep. Maxine Waters criticized Vought for "hiding while unlawfully trying, and thankfully failing, to dismantle the nation’s top consumer watchdog."
The hearing also addressed a draft of the CFPB Reform Act of 2026, which proposes increased congressional oversight, revised funding and governance, and recalibrated enforcement powers. Vought supported adjusting the threshold for supervised institutions to $21 billion in assets to focus oversight on larger entities. He also confirmed the agency is nearing completion of an open banking rule, though he suggested a confirmed director should finalize it. Vought's tenure as acting director is set to expire on August 1, with Brian Johnson nominated to be the permanent director, though his confirmation hearing has not been scheduled.