Bloomberg: “Acting Consumer Financial Protection Bureau Director Russell Vought agreed to hold off on zeroing out the agency’s budget for at least two weeks even as he moves to slash its workforce… Baltimore and Economic Action Maryland Fund sued Vought and the CFPB on Feb. 12, alleging the acting CFPB director is attempting to illegally shutter a congressionally created federal agency.”

WASHINGTON, D.C. — This week, Democracy Forward filed an emergency suit on behalf of the City of Baltimore and Economic Action Maryland Fund asking the court to stop Russ Vought from unilaterally defunding the Consumer Financial Protection Bureau. Yesterday, the Trump administration agreed not to unilaterally defund the Consumer Financial Protection Bureau until a case is heard in challenge brought by the City of Baltimore and Economic Action Maryland Fund.

To schedule an interview with Skye Perryman, CEO of Democracy Forward, please email press@democracyforward.org

Bloomberg: Vought Agrees to Delay CFPB Funding Slash as Layoffs Continue

Acting Consumer Financial Protection Bureau Director Russell Vought agreed to hold off on zeroing out the agency’s budget for at least two weeks even as he moves to slash its workforce, according to court filings.

Vought and the city of Baltimore want to let Judge Adam B. Abelson in the US District Court for the District of Maryland determine on the merits whether the acting director has the authority to transfer money in CFPB reserve accounts and take other measures to reduce its available cash, according to a joint motion for a briefing schedule filed late Thursday.

In Baltimore’s case, the two sides agreed that Vought would hold off on transferring money out of the CFPB’s reserve fund or returning any money to the Federal Reserve or Treasury Department until Feb. 28, or upon a “contrary order” from the court.

Baltimore and Economic Action Maryland Fund sued Vought and the CFPB on Feb. 12, alleging the acting CFPB director is attempting to illegally shutter a congressionally created federal agency.

Baltimore relies on CFPB consumer complaint data to protect its citizens and carry out other functions, the complaint said.

The parties also agreed to convert Baltimore’s motion for a temporary restraining order into a request for a preliminary injunction, according to court papers.

Meanwhile, Vought is pressing ahead in his efforts to gut the CFPB’s workforce.

As many as 100 “term” employees—career civil servants who have contracts with specific end-dates—were fired on Thursday. Those included fellows, members of the director’s “Financial Analyst” program, and technologists hired to review Big Tech’s moves into consumer finance.

Vought is prepping to fire as much as 95% of the agency’s staff as early as Friday, according to an amended complaint the National Treasury Employees Union filed in the US District Court for the District of Columbia.

Democracy Forward Foundation represents the Baltimore plaintiffs. Gupta Wessler LLP and Public Citizen Litigation Group represent the NTEU and other plaintiffs who joined the suit.

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