U.S. Consumer Watchdog Orders Nationwide Staff Recall to Washington Headquarters, Raising Regulatory Concerns
By Douglas Gillison
WASHINGTON, May 27 (Reuters) — The top U.S. government watchdog for consumer financial protection announced Wednesday that it would reassign virtually all staff stationed outside its Washington headquarters to the capital later this year, a decision widely seen as the latest step in a broader push by the Trump administration to weaken—if not effectively dismantle—the agency.
The Consumer Financial Protection Bureau (CFPB) informed employees that roughly 450 staff members currently based near former regional offices in San Francisco, Atlanta, Chicago, and New York, along with those on remote work arrangements, would be required to relocate to a new headquarters. The mandate is expected to accelerate an already steep wave of resignations that has reduced the agency's workforce by about a third since last year.
President Donald Trump’s administration has been locked in a legal battle for more than a year, seeking court authorization to dismiss the vast majority of CFPB employees, but has so far been blocked by a federal judge. The relocation order, contained in an internal email reviewed by Reuters, does not require court approval and takes effect in stages.
Starting in July, staff already working at the agency’s previous headquarters near the White House must return to the office five days a week. Beginning August 31, all field employees and those assigned to former regional offices—located more than 50 miles from Washington—must report to the new headquarters. The agency will cover relocation costs for eligible staff, according to a separate memo seen by Reuters.
The CFPB, created by Congress in 2010 following the 2008 financial crisis, has long been a target of conservative criticism. Top Trump administration officials, including the president himself, have described the agency as a politicized burden on free enterprise. In contrast, Democratic lawmakers and consumer advocates argue that efforts to eliminate the CFPB amount to a giveaway to corporations at the expense of everyday Americans.
The Trump administration canceled the lease on the CFPB’s original Washington headquarters—a prominent building near the White House—in February. The building now partially houses the Office of Management and Budget Director Russell Vought, who also serves as acting CFPB director. The new office, according to the email, is located in a separate quadrant of the capital with less convenient access to public transportation.
The CFPB did not immediately respond to requests for comment submitted outside normal business hours Wednesday evening. The administration is currently seeking court permission to dismiss roughly half of the agency’s remaining employees.
The latest relocation mandate is likely to further diminish institutional knowledge and morale at an agency already struggling to retain staff. Legal experts and former officials say that even if a court blocks large-scale firings, the physical relocation requirement could function as an effective downsizing tool, as many employees may choose to resign rather than uproot their families.