California Attorney General Rob Bonta has announced his participation in a coalition of 23 attorneys general, submitting an amicus brief in the case of National Treasury Employees Union v. Vought. This lawsuit challenges efforts by the Trump Administration to dismantle the Consumer Financial Protection Bureau (CFPB). In February, Bonta had already submitted an initial amicus brief, which led to a court granting a preliminary injunction preventing mass layoffs at the CFPB while litigation continues. The Trump Administration has appealed this injunction, seeking its removal to continue with its plans for the CFPB.
Attorney General Bonta stated, "Further demolishing the CFPB, the top cop protecting Americans from exploitation, would put families nationwide at a stark disadvantage when standing up to big businesses who aren’t playing by the rules." He urged the court to maintain the order that prevents mass layoffs at the CFPB, highlighting potential negative impacts on California and national financial well-being.
The brief filed in the United States Court of Appeals for the District of Columbia Circuit argues that dismantling the CFPB would harm consumers and state consumer protection efforts. It would leave large national banks without oversight and increase burdens on state agencies tasked with consumer protection previously regulated by the CFPB. The agency's partnership has been crucial for sharing complaints and trend data, providing training, and collaborating on investigations and litigations.
Following Congress's examination of the 2008 financial crisis fallout, it was determined that federal regulators' failure contributed significantly to consumer protection issues affecting both consumers and banking system stability. Consequently, Congress established the CFPB to enforce federal consumer protection statutes and regulations. For over ten years, it has been instrumental in safeguarding consumers against fraudulent practices while promoting fairness in financial markets.
Recently, actions by the Trump Administration aimed at weakening or shutting down the CFPB have included suspending work across its operations, terminating probationary employees, and ceasing additional funding from the Federal Reserve. Reduction notices were issued to 90% of its workforce but were blocked by courts.
Attorney General Bonta has consistently supported CFPB initiatives; he previously submitted an amicus brief in Mayor and City Council of Baltimore v. Consumer Financial Protection Bureau. Joining him are attorneys general from New York, New Jersey, Washington D.C., Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine Maryland Massachusetts Michigan Minnesota Nevada New Mexico North Carolina Oregon Rhode Island Vermont Washington Wisconsin.
A copy of this latest brief is available online.