Congressional Budget Cuts Signal Likely Impending Workforce Reductions at CFPB

Funding cuts imposed by the budget bill that was approved by Congress and signed into law earlier this year will likely lead to more workforce reductions at the Consumer Financial Protection Bureau (CFPB), recent reporting suggests. The CFPB sent an email last week notifying staff to anticipate upcoming reductions in force (RIFs), as the bill capped the amount of funding that the CFPB can receive from the Federal Reserve at 6.5 percent, down from 12 percent previously.

“The CFPB must continue to evaluate workforce optimization opportunities to align with congressionally-mandated funding levels since the bureau’s transfer cap from the Federal Reserve was revised from 12% to 6.5% per year,” according to the email, which was obtained by American Banker. “This evaluation includes considering a possible reduction in force action.”

The National Treasury Employees Union is currently considering whether to seek an en banc review of a decision last month by the U.S. Court of Appeals for the District of Columbia Circuit that paved the way for job cuts. According to Bloomberg Law, the union said the issue over the Bureau’s funding was created by Acting CFPB Director Russell Vought.

“This is a manufactured crisis by Russ Vought who failed in his duties as Acting Director by refusing to request the funds necessary for the CFPB to fulfill its statutory obligations,” said the vice president of the CFPB’s union, Jasmine Hardy. “Everyday Americans defrauded and scammed by big banks and corporate bad actors will suffer as a result.”

Since February when he took the job, Vought has already tried to fire up to 90 percent of the CFPB’s 1,700 member workforce, but courts put a hold on the attempted RIFs. He also requested zero funding in the Bureau’s fiscal third quarter, and cited a large existing balance.

CFPB management is asking for updated resumes to create a register of employees to be ranked on tenure, military preference, and total years in federal performance and service. Evaluating retention rights will allow some staff to potentially return to a prior position should their job be eliminated.