Vought Defends CFPB Cuts, Seeks Congressional Reforms

Russell Vought, the acting director of the Consumer Financial Protection Bureau (CFPB), testified before the House Financial Services Committee on Wednesday, asserting that the bureau has exceeded its statutory authority. Vought defended the Trump administration’s overhaul of the agency and the rollback of its operations, which he has overseen. This hearing marked Vought’s initial appearance before Congress in his leadership capacity at the CFPB.

The hearing was convened to review the bureau’s Spring 2026 report, detailing its activities from October 2024 through December 2025, as mandated by the Dodd-Frank Act. Committee leaders also discussed a draft of the CFPB Reform Act of 2026, a proposal aimed at restructuring the bureau’s framework and authorities. The proposed reforms include enhanced congressional oversight, revised CFPB funding and governance, increased transparency and accountability for rulemaking and enforcement, and a recalibration of its supervisory and enforcement powers.

Key provisions within the reform proposal include an adjustment to the asset threshold for supervised institutions, raising it to $21 billion from the current $10 billion to reflect economic growth. Vought informed lawmakers that the CFPB has operated beyond its congressional mandate, imposing unnecessary costs on consumers and financial institutions. He argued that the bureau should not persist in its current form and that Congress should subject the agency to the annual appropriations process instead of allowing it to receive direct funding from the Federal Reserve.

Vought’s tenure as acting director is set to expire on August 1, according to the Federal Vacancies Reform Act. President Donald Trump has nominated former CFPB official Brian Johnson to be the agency’s permanent director, though the Senate has not yet scheduled a confirmation hearing for him. The outcome of this nomination and the potential passage of the CFPB Reform Act of 2026 will significantly shape the future operations and oversight of the bureau.