CFPB Delays Workforce Cuts as Acting Director Russell Vought Prepares for Congressional Hearings

The Consumer Financial Protection Bureau has paused plans to reduce its workforce until a permanent director is confirmed, as Acting Director Russell Vought prepares to testify before congressional committees this week on the bureau’s direction, funding and ongoing reforms.

The developments come as the Trump administration continues reshaping the CFPB while awaiting Senate action on President Donald Trump’s nomination of former CFPB Deputy Director Brian Johnson to lead the agency.

Workforce reduction delayed pending director confirmation

According to a court filing made public July 13, the CFPB and the National Treasury Employees Union agreed that the bureau will not implement its planned reduction in force until Johnson has an opportunity to review the proposal if he is confirmed.

Earlier this year, the CFPB sought permission from the U.S. Court of Appeals for the District of Columbia Circuit to reduce its workforce from approximately 1,174 employees to 556. The staffing plan followed broader efforts by Vought to significantly shrink the agency, including an earlier proposal to reduce staffing by as much as 90%, which prompted litigation by the union representing CFPB employees.

In the joint court filing, the parties stated that Johnson should be allowed to determine whether to move forward with the 2026 workforce reduction plan after taking office.

The delay removes immediate uncertainty surrounding the layoffs while leaving open the possibility that the restructuring could proceed under new leadership.

Vought to defend CFPB reforms before Congress

The workforce announcement comes just ahead of Vought’s semiannual testimony before Congress, which is required under the Dodd-Frank Act.

Vought is scheduled to appear before the House Financial Services Committee on July 15 and the Senate Committee on Banking, Housing and Urban Affairs on July 16 to present the CFPB’s Semi-Annual Report to Congress.

The hearings are expected to examine the bureau’s recent operational changes, funding structure, staffing plans and regulatory priorities.

The House committee will also consider a discussion draft of the CFPB Reform Act of 2026, legislation that would make significant structural changes to the agency.

Among the proposals included in the draft legislation are:

• Replacing the CFPB’s single-director structure with a five-member bipartisan commission.
• Requiring congressional appropriations for bureau funding instead of funding through the Federal Reserve.
• Restricting public access to the Consumer Complaint Database unless complaints have been verified for accuracy.

House Financial Services Committee Chairman French Hill, R-Ark., has made CFPB restructuring a central focus of the committee’s agenda. Senate Banking Committee Chairman Tim Scott, R-S.C., has likewise supported reforms aimed at limiting the bureau’s funding and regulatory authority.

Congress previously reduced the CFPB’s Federal Reserve funding cap through legislation signed into law in 2025.

Democratic lawmakers expected to question website changes

While Republican lawmakers are expected to focus on structural reforms, Democratic members of the Senate Banking Committee have indicated they plan to scrutinize changes made to the CFPB’s public website.

In June, Ranking Member Sen. Raphael Warnock, D-Ga., joined Sens. Elizabeth Warren, D-Mass., Andy Kim, D-N.J., and Lisa Blunt Rochester, D-Del., in sending a letter to Vought questioning the removal of historical press releases, research reports, testimony and consumer advisories dating from before February 2025.

The senators asked the bureau to explain how those changes affect public access to consumer information and agency transparency.

Leadership transition approaching

Vought’s tenure as acting director is nearing its legal conclusion.

Under the Federal Vacancies Reform Act, his current term is scheduled to expire Aug. 1. He has served as acting director since February 2025.

Brian Johnson’s nomination is currently before the Senate Banking Committee. If approved by the committee, the nomination will advance to the full Senate for confirmation.

The timing of Johnson’s confirmation will likely determine when the CFPB revisits its workforce reduction plans and how aggressively the bureau continues its broader restructuring efforts.