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Federal Union Files Lawsuit to Prevent Closure of Consumer Financial Protection Bureau


— February 11, 2025

“CFPB employees have been placed in questionable status as they have been directed not to work but they have not been formally placed on any authorized type of leave,” the National Treasury Employees Union said. “It is substantially like that these initial directives are a precursor to a purge of CFPB’s workforce, which is now prohibited from fulfilling the agency’s statutory mission.”


A union representing employees of dozens of federal agencies has filed two lawsuits challenging the closure of the Consumer Financial Protection Bureau and the Trump administration’s attempts to grant Elon Musk’s Department of Government Efficiency access to personnel records and other information.

The Consumer Financial Protection Bureau, or CFPB, was established by Congress after the 2008 financial crisis. Since its inception, the CFPB has fought to protect American consumers from acts of corporate fraud, deceit, and misrepresentation.

After taking office, President Donald Trump appointed Russel Vought, the head of the federal Office of Management and Budget, to run the CFPB until its planned termination.

One of the two lawsuits, filed on behalf of the National Treasury Employees Union, asks the U.S. District Court of the District of Columbia to find that Vought’s order to immediately cease work at the CFPB is unlawful. Attorneys cited a recent Twitter post by Elon Musk, which stated “CFPB RIP” alongside a tombstone emoji.

“CFPB employees have been placed in questionable status as they have been directed not to work but they have not been formally placed on any authorized type of leave,” the National Treasury Employees Union said. “It is substantially like that these initial directives are a precursor to a purge of CFPB’s workforce, which is now prohibited from fulfilling the agency’s statutory mission.”

Elon Musk, grinning and at ease, wearing a dark suit and a plaid shirt with an unbuttoned collar.
Elon Musk in 2008. Photo by JD Lasica, via Flickr. CC BY 2.0

The union has asked the court to find that “Defendant Vought’s directive to the CFPB’s employees to stop their supervision and enforcement work is unlawful,” and to “enjoin Defendant Vought from further attempts to halt the CFPB’s supervision and enforcement work.”

According to CBS News, the second lawsuit—also filed on behalf of the National Treasury Employees Union—alleges that the Trump administration has violated the Privacy Act, which prohibits the CFPB from releasing employee records to Elon Musk’s Department of Government Efficiency with first obtaining “employee consent.”

“CFPB has a statutory responsibility to protect the information that it collects and maintains about its employees from unlawful disclosure to third parties,” the lawsuit says. “The Bureau has acted contrary to law and regulation by granting DOGE and its members access to the records that the Bureau collects and maintains about every CFPB employee.”

The union claims that DOGE poses a serious threat to federal employees’ right to privacy.

“These employees face irreparable harm to their privacy interests if their employee information is improperly accessed and/or disseminated by individuals associated with DOGE,” the lawsuit alleges. “Once an employee’s personal information is improperly disclosed, the harm to the employee cannot be undone.”

The Trump administration’s attempt to dismantle the Consumer Financial Protection Bureau has been criticized by Democrats, who say that the move is little more than a gift to predatory corporations.

“Vought is giving big banks and giant corporations the green light to scam families,” Massachusetts Sen. Elizabeth Warren wrote in a Twitter post. “The Consumer Financial Protection Bureau has returned over $21 billion to families cheated by Wall Street. Republicans have failed to gut it in Congress and in the courts. They will fail again.”

Sources

Federal employees union files lawsuits over CFPB shutdown and DOGE access

Union sues Russell Vought over DOGE access to CFPB and attempts to shutter bureau

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