Trump taps new CFPB nominee as Vought aims to ax agency
president Donald Trump has nominated Stuart Levenbach, a senior aide to Office of Management and Budget Director Russell Vought, to lead the Consumer Financial Protection Bureau (CFPB). This nomination serves as a strategic move to allow Vought to continue acting as head of the agency beyond the 210-day limit set by the Federal Vacancies Reform Act without requiring Senate confirmation. Vought aims to shut down the CFPB,with plans reportedly to cut about 90% of its staff,citing the agency’s funding issues after the Department of Justice confirmed that CFPB can no longer legally receive funds from the Federal Reserve and will run out of money by early 2026 unless congress acts. The nomination has been referred to the Senate Committee on Banking, Housing, and Urban Affairs, but its progress remains uncertain. Senator Elizabeth warren criticized the move,accusing Trump and Vought of trying to close the agency illegally and protect corporate interests at the expense of American consumers.
Trump taps new CFPB nominee as Vought aims to ax agency
President Donald Trump nominated Stuart Levenbach, a top aide to Office of Management and Budget Director Russell Vought, to lead the Consumer Financial Protection Bureau on Tuesday.
The move essentially allows Vought to continue serving as acting head of the watchdog agency beyond his 210-day limit under the Federal Vacancies Reform Act. If another person is appointed for the position, the acting director’s term will be extended without needing Senate confirmation.
A CFPB spokesperson confirmed the action was a “technical” maneuver to keep Vought in the role.
Levenbach’s nomination comes as Vought seeks to shutter the CFPB in the coming months. The White House budget director’s stated intention is in line with reports that the Trump administration wants to cut about 90% of the agency’s staff.
The CFPB’s expected closure stems from its inability to legally draw funds from the Federal Reserve. The Department of Justice told a federal court last week that the agency expects to run out of funding by early 2026, absent congressional action.
“If the Federal Reserve has no profits, it cannot transfer money to the CFPB,” DOJ official T. Elliot Gaiser wrote in a court notice. “Because the only lawful source of funding from the Federal Reserve has dried up, the proper method for obtaining additional funds is to request them from Congress.”
The nomination was received in the Senate and referred to the Committee on Banking, Housing, and Urban Affairs on Tuesday, according to congressional records. It remains unclear whether the committee will proceed with the new nominee’s confirmation process.
Sen. Tim Scott (R-SC), who chairs the committee, has not publicly commented on the nomination.
Sen. Elizabeth Warren (D-MA), who serves as the committee’s ranking member and helped establish the agency in 2010, opposed the move.
“Donald Trump’s sending the Senate a new nominee to lead the CFPB looks like nothing more than a front for Russ Vought to stay on as Acting Director indefinitely as he tries to illegally close down the agency,” she said in a statement on Wednesday. “Instead of doing everything in their power to lower costs for Americans, Trump and Vought want to make it easier for giant corporations to scam families out of their money.”
TRUMP ADMINISTRATION DETERMINES CFPB’S FUNDING MECHANISM IS UNLAWFUL
Vought has been serving as the CFPB’s acting head since Feb. 7. His term was set to expire in December.
Trump’s previous CFPB nominee, Jonathan McKernan, was withdrawn in May. McKernan was later confirmed as undersecretary of domestic finance at the Treasury Department.
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