President Donald Trump has nominated Stuart Levenbach as the next director of the Consumer Financial Protection Bureau (CFPB). This move comes as the Trump administration continues its plans to close the agency, with current budget director Russell Vought remaining as acting director.
Levenbach currently serves as an associate director in the Office of Management and Budget, focusing on natural resources, energy, science, and water issues. His background includes significant experience in government, notably as chief of staff at the National Oceanic and Atmospheric Administration (NOAA) during Trump’s first term.
The nomination is not expected to proceed to confirmation, according to an administration official who requested anonymity. By nominating Levenbach, the administration has effectively paused the timeline under the Vacancies Act, which allows Vought to serve as acting director for only 210 days. This suspension will remain until the Senate either confirms or denies Levenbach’s nomination.
The CFPB has seen diminished functionality for much of the year, with many employees ordered not to work. The bureau’s primary activity has involved unwinding regulations established during both Trump’s first term and the subsequent Biden administration. Vought has indicated a desire to significantly reduce the agency’s scope or dismantle it entirely.
In a recent development, the White House indicated it will not withdraw any funds from the Federal Reserve, which provides the CFPB’s funding, beyond December 31. This decision is based on a legal interpretation of the Dodd-Frank Act, which established the CFPB in response to the 2008 financial crisis. The administration argues that the bureau requires the Fed to be profitable in order to receive operational funding—an interpretation that has faced rejection in various judicial contexts but has not been a government position until now.
Senator Elizabeth Warren, the leading Democrat on the Senate Banking Committee, criticized the nomination, suggesting that it serves as a facade for Vought to remain in his role indefinitely while attempting to close the agency unlawfully. She stated, “Donald Trump’s sending the Senate a new nominee to lead the CFPB looks like nothing more than a front for Russ Vought to stay on as Acting Director indefinitely.”
The CFPB was established to serve as an independent advocate for consumers, aiming to protect them from deceitful practices in the financial sector. It was a key component of the Dodd-Frank Act, designed to ensure that financial institutions maintain sufficient capital to avert future crises.
As the nomination process unfolds, the future role and functionality of the CFPB remain uncertain, continuing to spark debate among lawmakers and the public about consumer protection in the financial landscape.
