A new federal audit paints a stark picture of contraction inside the Consumer Financial Protection Bureau. According to a report released Monday by the Government Accountability Office, the agency has abandoned at least half of its enforcement cases and rolled back dozens of consumer protection measures over the past year.
The review details a sweeping restructuring effort that began shortly after the Trump administration assumed control of the bureau.
Enforcement Activity Slashed
Since February 2025, the CFPB has:
- Issued stop-work orders
- Closed supervisory examinations
- Terminated enforcement cases
- Ended contracts
- Reduced staffing dramatically
The GAO found that employee terminations — many of which are currently being challenged in court — represent roughly 88% of the bureau’s workforce.
In effect, the agency charged with policing consumer financial abuses has been operating at a fraction of its former capacity.
Political Pressure and Oversight
The GAO conducted its audit between April 2025 and January 2026 following a formal request from a group of lawmakers led by Elizabeth Warren, one of the CFPB’s original architects and a long-time defender of its authority.
Warren has been openly critical of efforts to dismantle the bureau — in contrast to Acting Director Russ Vought, who has publicly supported dramatically shrinking, if not eliminating, the agency.
While the CFPB declined to comment on the findings, the GAO stated that the bureau raised general concerns about the report’s accuracy but did not provide specific corrections. After confirming that no additional information would be supplied, the GAO reaffirmed its confidence in the report, noting that its conclusions are based on public court records and Federal Register notices.
Billions in Consumer Impact
A separate analysis released the same day by the minority staff of the United States Senate Committee on Banking, Housing, and Urban Affairs echoed similar conclusions — and put a price tag on the policy reversals.
According to that report, the rollback of enforcement actions and regulatory protections could cost American consumers up to $19 billion.
The estimated breakdown includes:
- $5 billion tied to overturning the Biden-era overdraft fee cap
- $10 billion connected to credit card late fee protections
- $4 billion stemming from dropped lawsuits and vacated settlements involving companies previously accused of violating consumer protection laws
Critics argue that scaling back enforcement not only weakens regulatory oversight but also directly increases costs for consumers.
Sharp Reactions from Consumer Advocates
The Consumer Federation of America, a national consumer advocacy nonprofit, sharply criticized the bureau’s response to the audit.
A spokesperson emphasized that the GAO has long served as Congress’s nonpartisan investigative arm and suggested that the CFPB’s handling of the situation reflects an unprecedented departure from transparency and public accountability.
A Bureau at a Crossroads
The latest findings underscore a broader ideological battle over the CFPB’s future. Supporters argue the agency is essential for policing abusive financial practices. Opponents contend it has overreached and imposed excessive regulatory burdens.
What is clear from the GAO report is this: the scale and speed of the CFPB’s downsizing are historic — and the financial consequences for consumers may be significant.
Whether these changes represent reform or retreat remains deeply contested in Washington.