A Federal Union Strikes Back: Lawsuits Filed Against CFPB Acting Director and Musk’s DOGE

A New Front in the Battle Over Federal Agencies

In a dramatic escalation of the ongoing power struggle within the federal bureaucracy, the National Treasury Employees Union (NTEU), representing approximately 155,000 federal workers across 34 agencies, filed two lawsuits on Sunday against Russell Vought, the acting director of the Consumer Financial Protection Bureau (CFPB). The lawsuits aim to block what the union describes as an unlawful shutdown of the agency and to prevent Elon Musk’s Department of Government Efficiency (DOGE) from accessing CFPB employee records without consent. The legal actions mark a significant challenge to the Trump administration’s efforts to curtail the independence and operations of the CFPB, a watchdog agency created to protect consumers from corporate fraud and abuse.

The First Lawsuit: Challenging the Shutdown of the CFPB

The first lawsuit, filed in the U.S. District Court of the District of Columbia, seeks to halt Russell Vought’s directive ordering CFPB employees to cease nearly all their work. Vought, who was appointed by President Trump as the acting head of the CFPB after the previous director was removed, instructed staff to stop issuing proposed or formal rules, abandon pending investigations, refrain from opening new ones, and avoid all stakeholder engagements and public communications. The union alleges that this directive is unlawful and violates the CFPB’s statutory mission to protect consumers.

The NTEU is particularly concerned that Vought’s actions may be a precursor to a broader effort to dismantle the agency. In its lawsuit, the union points to a February 7 post by Elon Musk on the social media platform X, where Musk wrote "CFPB RIP" alongside a tombstone emoji. The union argue that this, combined with Vought’s directive, suggests a coordinated effort to undermine the agency’s operations and potentially purge its workforce. The lawsuit asks the court to declare Vought’s directive unlawful and to enjoin him from taking further steps to halt the CFPB’s work.

The Second Lawsuit: Protecting Employee Privacy

The second lawsuit also filed in the same court focuses on a different but equally critical issue: the privacy rights of CFPB employees. The union argues that the Trump administration has violated the Privacy Act by granting Musk’s DOGE access to CFPB employee records without obtaining the necessary consent. The lawsuit seeks to block the CFPB from disclosing any further employee information to DOGE or its members, asserting that the agency has a legal obligation to protect the confidentiality of the records it maintains about its employees.

The NTEU contends that allowing DOGE to access these records without explicit consent sets a dangerous precedent, potentially exposing federal employees to unwarranted scrutiny and interference. The lawsuit emphasizes that the CFPB, as an independent agency, has a statutory responsibility to safeguard the information it collects and maintains about its workforce. By granting DOGE access to these records, the union argues, the agency is acting in contravention of federal law and regulation.

The CFPB: A Lightning Rod for Controversy

The CFPB has long been a focal point of political and ideological debates in Washington. Established by the Dodd-Frank Act in 2010, in the aftermath of the 2008 financial crisis, the agency was tasked with protecting consumers from predatory lending practices, financial scams, and corporate fraud. Championed by then-Senator Elizabeth Warren, the CFPB was designed to operate independently of direct political influence, with a structure that includes a single director and a funding mechanism insulated from annual appropriations by Congress.

However, since its inception, the CFPB has been a target of Republican lawmakers and conservative groups, who argue that the agency oversteps its authority and imposes excessive regulations on businesses. Despite these criticisms, the CFPB has enjoyed significant successes, returning tens of billions of dollars to consumers through enforcement actions. In 2024, the Supreme Court weighed in on one of the most contentious issues surrounding the agency, ruling in a 7-2 decision that its funding structure, which draws directly from the Federal Reserve rather than Congress, is constitutional.

The Broader Implications of the Lawsuits

The NTEU’s legal actions against Vought and DOGE highlight the high stakes of the current battle over the future of the federal bureaucracy. The lawsuits are not just about the CFPB or its employees; they speak to broader questions about the balance of power within the federal government, the role of independent agencies, and the rights of federal workers. By challenging Vought’s directive and the unauthorized sharing of employee records, the NTEU is pushing back against what it sees as an abuse of power and an attempt to undermine the independence of an agency critical to consumer protection.

The lawsuits also underscore the tension between the Trump administration’s efforts to reshape the federal bureaucracy and the resistance from employee unions and other stakeholders. As the administration continues its push to centralize control over independent agencies and impose its vision of government efficiency, the NTEU’s legal challenges serve as a reminder that these efforts will not go unopposed. The outcome of these lawsuits will have significant implications not only for the CFPB but also for the broader landscape of federal governance and employee rights.

A Conclusion: The Fight for Accountability and Transparency

In filing these lawsuits, the NTEU has drawn a line in the sand, asserting that federal agencies cannot be arbitrarily shut down or their employees subjected to privacy violations without legal consequence. The union’s actions reflect a broader commitment to defending the integrity of the federal workforce and the agencies they serve. As the legal battles unfold, the court’s decisions will have far-reaching implications for the balance of power in Washington, the independence of federal agencies, and the rights of federal employees. For now, the CFPB remains at the center of a storm, its future uncertain as it faces mounting challenges from the Trump administration and Elon Musk’s DOGE.

In the end, the lawsuits filed by the NTEU serve as a powerful reminder of the importance of accountability, transparency, and the rule of law in the functioning of federal agencies. Whether the courts will uphold the union’s claims remains to be seen, but one thing is clear: this is a fight that will resonate far beyond the halls of the CFPB.