Attorney General Josh Kaul has aligned with a coalition of 23 attorneys general to oppose attempts by the Trump administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB). The CFPB, an independent agency, is responsible for overseeing major financial institutions to ensure compliance with federal consumer protection laws. Since its inception, it has aided millions of Americans by preventing foreclosures, eliminating junk fees from banks, and returning over $20 billion to consumers.
The coalition filed an amicus brief in the U.S. District Court for the District of Maryland, arguing that dismantling the CFPB would harm consumers and weaken enforcement of federal consumer protection laws. "If President Trump and Elon Musk succeed in shutting down the Consumer Financial Protection Bureau, it will be a windfall for big banks and powerful corporations—at the expense of the interests of consumers in Wisconsin and other states," said AG Kaul. "We must keep critical financial guardrails in place to protect consumers and prevent the kinds of practices that caused the Great Recession."
On February 9, directives from the Trump administration halted all ongoing work at the CFPB and barred new investigations. Established in 2011 after the Great Recession, the CFPB enforces federal consumer protection laws and collaborates with state attorneys general on various financial issues including banking, student loans, mortgages, auto lending, among others. With recent administrative actions halting its functions, large banks are no longer under close scrutiny for compliance with key consumer protections.
The coalition's brief suggests that dismantling efforts could hinder consumers' ability to report fraud or deception while reducing oversight over large banks—potentially leading to weakened regulatory compliance similar to pre-financial crisis conditions.
In addition to Wisconsin's Attorney General Josh Kaul, attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan Minnesota Nevada New Jersey New Mexico New York North Carolina Oregon Rhode Island Vermont Washington D.C., have joined this legal effort.