Attorneys general from 21 states and Washington, D.C., have filed a lawsuit against the Trump administration over efforts to defund the Consumer Financial Protection Bureau, a federal agency created after the 2008 financial crisis to protect consumers from fraud and unfair lending practices. Congress established the bureau in 2010, and according to the Oregon Department of Justice, it has since returned more than $21 billion to over 205 million Americans.
The lawsuit alleges that acting director Russell T. Vought has effectively shut down the agency by firing hundreds of employees, limiting states’ access to its data and resources, and requesting zero dollars in funding for its operations. The states argue these actions violate federal law, which requires the agency to request funding from the Federal Reserve to carry out its duties.
Led by Oregon Attorney General Dan Rayfield, the coalition is asking a federal court to block the administration’s funding request and require it to seek the funds needed to operate. Rayfield filed the lawsuit in U.S. District Court in Eugene and emphasized the agency’s past role in addressing misconduct by major financial institutions and protecting consumers with credit cards, mortgages, payday loans, and student loans.
The above summarizes Oregon Capitol Chronicle’s Dec. 22, 2025 article, “Democratic States Sue Trump Administration for Attempts to Defund Consumer Watchdog Agency” by Mia Maldenado.
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