Vought, Russell T

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    Judge Temporarily Halts Mass Firings at Consumer Bureau

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    One day after the Trump administration sent layoff notices to the vast majority of the Consumer Financial Protection Bureau’s workers, a federal judge temporarily blocked the action and ordered a hearing to determine whether the attempted mass firing violated an injunction she imposed last month.In a brief court session Friday morning, Judge Amy Berman Jackson of the Federal District Court in Washington pressed Justice Department lawyers for details about layoff notices sent Thursday to nearly 1,500 of the consumer bureau’s 1,700 workers. The messages told workers that they would lose access to their email accounts and work systems on Friday evening.Judge Jackson issued an oral order, followed by a written one, barring the government from carrying out that plan until at least April 28, when she plans to hold an evidentiary hearing on the issue. Her ruling came in a lawsuit brought by the consumer bureau’s staff union and other parties.“Once again, the court is confronted with evidence that gives rise to concerns that there will be no agency standing by the time it gets to consider the merits,” she said in her written order.Russell T. Vought, director of the White House budget office, became the consumer bureau’s acting director in early February and immediately began dismantling the agency — which cannot be closed without congressional action. Judge Jackson issued an injunction last month freezing those actions, saying that she wanted to make sure the agency existed long enough for courts to evaluate whether Mr. Vought’s actions were lawful.One week ago, a three-judge panel from the U.S. Court of Appeals for the District of Columbia Circuit pared back Judge Jackson’s order and said Trump officials could fire workers whom they decided — after a “particularized assessment” — were not needed to fulfill the agency’s legally mandated responsibilities.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      White House Eyes Overhaul of Federal Housing Aid to the Poor

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      The White House is considering deep cuts to federal housing programs, including a sweeping overhaul of aid to low-income families, in a reconfiguration that could jeopardize millions of Americans’ continued access to rental assistance funds.The potential changes primarily concern federal housing vouchers, including those more commonly known as Section 8. The aid generally helps the poorest tenants cover the monthly costs of apartments, town homes and single-family residences.Administration officials recently discussed cutting or canceling out the vouchers and other rental assistance programs and potentially replacing them with a more limited system of housing grants, perhaps sent to states, according to three people familiar with the matter, who spoke on the condition of anonymity to describe the confidential discussions. The overhaul would be included in President Trump’s new budget, which is expected to be sent to Capitol Hill in the coming weeks.The exact design and cost of the retooled program is unclear, and any such change is likely to require approval from Congress, as White House budgets on their own do not carry the force of law.But people familiar with the administration’s thinking said the overhaul under discussion would most likely amount to more than just a technical change, resulting in fewer federal dollars for low-income families on top of additional cuts planned for the rest of the Department of Housing and Urban Development.Federal voucher programs currently provide assistance to about 2.3 million low-income families, according to the government’s estimates, who enroll through their local public-housing authorities. The aid is part of a broader universe of rental assistance programs that are set to exceed $54 billion this fiscal year. But the annual demand for these subsidies is far greater than the available funds, creating a sizable wait list as rents are rising nationally.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Consumer Bureau Seeks to Undo Settlement and Repay Mortgage Lender

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      The Consumer Financial Protection Bureau wants to return a $105,000 penalty it collected last fall when it resolved a discrimination lawsuit.Under President Trump, the Consumer Financial Protection Bureau has dropped nearly a dozen enforcement cases brought during the Biden administration, ending lawsuits against banks and lenders for a variety of financial practices that the watchdog agency no longer considers illegal.But on Wednesday, the bureau went a step further: It is seeking to give back $105,000 that a mortgage lender paid to settle racial discrimination claims last fall.In an especially strange twist, the case — against Townstone Financial, a small Chicago-based lender — was brought during Mr. Trump’s first term by Kathleen Kraninger, the director he appointed to run the consumer bureau.Russell Vought, who became the agency’s acting director last month, said it had “used radical ‘equity’ arguments to tag Townstone as racist with zero evidence, and spent years persecuting and extorting them.”In its filing asking the U.S. District Court for the Northern District of Illinois to set aside the settlement it approved in November, the bureau said it had found “significant undisclosed problems” in its handling of the lawsuit, which the new leadership called an “unmerited” complaint that violated the defendants’ First Amendment free-speech rights.The case began in 2020 when the consumer bureau accused Townstone of redlining and breaking fair-lending laws by discouraging residents living in majority-Black neighborhoods from applying for its housing loans. It homed in on comments made during the company’s radio show and podcast, “The Townstone Financial Show,” saying they were intended to rebuff Black borrowers or those seeking to buy homes in certain neighborhoods.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump and DOGE Escalate Layoffs of Federal Workers

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      The Trump administration moved forward on Wednesday with plans for more mass firings across the federal government, hours after President Trump reiterated his support for Elon Musk and his effort to shrink the federal government.Thousands of federal workers have already been fired in recent weeks, primarily targeting those with probationary status. The Office of Personnel Management, the agency that manages the federal work force, also said that about 75,000 workers had accepted deferred resignation offers to quit their jobs in exchange for seven months of pay and benefits.Several recent polls show more Americans disapprove of Mr. Musk’s efforts to cut the federal work force than approved, and Republican House members have been met with raucous opposition at town halls. At his first cabinet meeting, Mr. Trump made clear he fully backed Mr. Musk, asking, “Is anybody unhappy with Elon?” As nervous laughter began to ripple around the room, he continued: “If you are, we’ll throw him out of here.”Russell T. Vought, the head of the White House budget office, and Charles Ezell, the acting head of the Office of Personnel Management, circulated a memo to government leaders calling for agencies to prepare plans for additional “large-scale reductions” in the federal work force in March and April.Denigrating the federal bureaucracy as “bloated” and “corrupt,” the seven-page memo called for agencies to be drastically cut — in some instances to the fullest extent allowed by the law. One line in the memo said agencies “should focus on the maximum elimination of functions that are not statutorily mandated.”The memo said that plans for the next stage of the cuts should be submitted by March 13. Plans for “phase 2” of the cuts should be submitted by April 14.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Elon Musk’s DOGE Overhauls the Consumer Financial Protection Bureau

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      The upheaval at the Consumer Financial Protection Bureau offers a glimpse into the playbook that Elon Musk and other Trump allies seem to be writing in real time.At first, things at the Consumer Financial Protection Bureau seemed eerily calm.The Biden-appointed director of the agency, which was created after the 2009 financial crisis to regulate banks and other lenders, was not immediately fired by President Trump. The lawyers at the agency continued with their business. In late January, they said a remittance company was misleading customers about its fees and ordered it to pay a $2.5 million fine.And then the chaos began.On the morning of Feb. 1 — a Saturday — the director was dismissed, as my colleague Stacy Cowley, who has followed every twist and turn of this story, reported. By the next Friday, Feb. 7, Russell Vought, the director of the Office of Management and Budget and a close Trump adviser, was installed as the C.F.P.B.’s acting director. Representatives from the new Department of Government Efficiency, which is led by Elon Musk and is not a formal executive-branch department, arrived and got access to the computer systems.Musk posted a message on his X account: “CFPB RIP.”Musk’s cost-cutting team has been operating with little transparency. Members don’t announce what they’re doing, who’s doing it or how. So it’s worth understanding what’s happening at the C.F.P.B., both because of the direct impact on the agency’s work and because it’s a glimpse into the playbook that Musk and his team, working with Trump officials like Vought, seem to be writing in real time.The panic strategyRussell Vought on Capitol Hill this week.Haiyun Jiang for The New York TimesLast Saturday, Vought ordered the nearly 1,700 people who work at the agency to stop much of their work. The edict prompted widespread fear and deep concern about the agency’s future. People worried that their work phones and computers were being tracked. One employee I spoke with, who asked not to be identified out of fear of retaliation, felt panic, and then remembered that Vought had spoken in 2023 of his intent to demoralize workers in the civil service.“We want the bureaucrats to be traumatically affected,” Vought had said.Some employees tried to plug away at their jobs. Two of them told me that after they saw Musk’s post on X about his team’s preference for working on weekends, when federal offices are closed, they decided they would do the same. On Saturday, they saw three employees from Musk’s team in the bureau’s basement, working in conference rooms with the windows papered over.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      36 Hours After Russell Vought Took Over Consumer Bureau, He Shut Its Operations

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      The agency had been one of Wall Street’s most feared regulators, with the power to issue rules on mortgages, credit cards, student loans and other areas affecting Americans’ financial lives.The day before Linda Wetzel closed on her retirement home in Southport, N.C., in 2012 — a cozy place where she could open the windows at night and catch an ocean breeze — the bank making the loan surprised her with a fee she hadn’t expected. Ms. Wetzel scoured her mortgage paperwork and couldn’t find the charge disclosed anywhere.Ms. Wetzel made the payment and then filed an online complaint with the Consumer Financial Protection Bureau. The bank quickly opened an investigation, and a month later, it sent her a $5,600 check.“My first thought was ‘thank you.’ I was in tears,” she recalled. “That money was a year or two of savings on my mortgage. It was my little nest egg.”Ms. Wetzel’s refund is a tiny piece of the work the bureau has done since it was created in 2011. It has clawed back $21 billion for consumers. It slashed overdraft fees, reformed the student loan servicing market, transformed mortgage lending rules and forced banks and money transmitters to compensate fraud victims.It may no longer be able to carry out that work.President Trump on Friday appointed Russell Vought, who was confirmed a day earlier to lead the Office of Management and Budget, as the agency’s acting director. Mr. Vought was an author of Project 2025, a conservative blueprint for upending the federal government that called for significant changes, including abolishing the consumer bureau.In less than 36 hours, Mr. Vought threw the agency into chaos. On Saturday, he ordered the bureau’s 1,700 employees to stop nearly all their work and announced plans to cut off the agency’s funding. Then on Sunday, he closed the bureau’s headquarters for the coming week. Workers who tried to retrieve their laptops from the office were turned away, employees said.The bureau “has been a woke & weaponized agency against disfavored industries and individuals for a long time,” Mr. Vought wrote Sunday on X. “This must end.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      White House Forces Showdown Over Congress’s Power of the Purse

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      The confirmation of Russell T. Vought to lead the powerful White House budget office is likely to escalate the funding fights roiling Washington and the nation.Susan Collins was a Senate intern in 1974 when Congress, in response to President Richard M. Nixon’s refusal to spend on projects he opposed, passed a sweeping budget law to bar presidents from overriding lawmakers when it came to doling out dollars.The resulting law, the Congressional Budget and Impoundment Control Act, is “very clear, and it re-emphasizes the power of the purse that Congress has under the Constitution,” Ms. Collins, now a 72-year-old Republican senator from Maine and the chairwoman of the Appropriations Committee, said in an interview this week.She and her fellow appropriators in both parties will have a fight on their hands if they hope to retain supremacy in federal spending. The question of who has the final word is emerging as a central point of contention between members of Congress and the White House, a clash that is likely to escalate after the confirmation on Thursday of Russell T. Vought as the director of President Trump’s Office of Management and Budget.Mr. Vought has flatly declared that he — and Mr. Trump — consider the budget act to be unconstitutional. They contend that the White House can choose what gets money and what doesn’t even if it conflicts with specific directions from Congress through appropriations measures signed into law. Others on Capitol Hill, including some Republicans, vehemently dispute that idea.The disagreement is spurring the uproar over Mr. Trump’s move to suspend trillions of dollars in federal spending while the executive branch reviews it to determine whether it complies with the his newly issued policy dictates, as well as the president’s efforts to gut the United States Agency for International Development.Senators Tim Kaine and Mark Warner, Democrats of Virginia, at a rally in support of U.S.A.I.D. at the Capitol on Wednesday. Haiyun Jiang for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Senate Confirms Russell Vought as Office of Management and Budget Director

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      The Senate voted along party lines on Thursday to confirm Russell T. Vought to lead the Office of Management and Budget, putting in place one of the most powerful architects of President Trump’s agenda to upend the federal bureaucracy and slash spending that the administration thinks is wasteful.The 53-to-47 vote returns Mr. Vought to the White House budget office that he also led during Mr. Trump’s first term. During his tenure, he took steps to expand the number of federal employees required to work during a government shutdown, froze military aid for Ukraine and railed against spending on foreign aid.Mr. Vought emerged as one of Mr. Trump’s most contentious nominees, drawing intense backlash from Senate Democrats who described him as a lawless ideologue. They used every legislative tool at their disposal to delay his confirmation vote, commandeering the Senate floor on Wednesday night and into Thursday morning to make the case against him.“We’re going to be speaking all night,” Senator Chuck Schumer, Democrat of New York and the minority leader, said as his colleagues prepared to burn through the clock. “We want Americans, every hour, whether it’s 8 p.m. or 3 a.m., to hear how bad Russell Vought is and the danger he poses to them in their daily lives.”After leaving the office, Mr. Vought founded the Center for Renewing America, a conservative think tank, and was an architect of Project 2025. That document was an effort by conservative groups to develop detailed ideas for policies and executive actions that Mr. Trump could pursue to tear down and rebuild executive government institutions in a way that would enhance presidential power.In speeches, Mr. Vought made clear that he relished the opportunity to overhaul the ranks of career federal workers that Mr. Trump views as part of the “deep state.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More