The Department of Government Efficiency has finally breached the Consumer Financial Protection Bureau. 

A flurry of reporting reveals that DOGE is communicating with staff and “sought access to information technology systems” at the agency and Russell Vought, President Donald Trump’s budget chief, has taken over as acting director of the agency. Vought immediately issued a stop-work order and indicated his intent to cease all funding to the agency. Big changes have come for the CFPB, but to enact meaningful, lasting reforms, congressional action is required.

In November 2024, Musk posted “Delete CFPB,” in reference to Marc Andressen’s comments on The Joe Rogan Experience regarding “debanking.” On Friday, he posted again on his X account, saying “CFPB RIP,” indicating a desire to destroy the agency. This weekend’s actions indicate that any populist economic policies Trump intends to advance are unlikely to be enforced through bureaucratic agencies, a welcome change from the previous administration.

Originally the brainchild of Sen. Elizabeth Warren (D-MA) in the wake of the 2008 financial crisis, the CFPB is tasked with promoting “fairness and transparency for mortgages, credit cards, and other consumer financial products and services.” However, the agency has far exceeded its mandate, especially during the Biden administration, which regulated businesses and products outside of its scope, including digital payment platforms and credit reporting agencies. Many of these rules raised alarm bells about reducing access to credit and banking, including the credit card late fee rule and bank overdraft fee rule, which would harm the very consumers the agency purports to help.

Stopping the CFPB’s overreach is critical, but permanently reining in the agency will require Congress. One area that has been discussed as an avenue for such change is addressing its unique funding structure. The CFPB is essentially double insulated from congressional budget oversight and operates under special rules that allow it to determine its own budget and roll over funds from one year to the next, a perk not bestowed on other federal agencies. Given the actions by Vought, it appears, for now, that the agency will be reined in by setting the budget to zero, but the next director can simply request funding once again.

For now, a stop-work order will also keep the agency at bay, though litigation is almost certain to ensue. Of course, none of this equates to lasting change either. Instead, it results in a regulatory whiplash from one administration to the next.

The most impactful way to make lasting change at the agency is the same way it was created — by congressional action. Rep. Andy Barr (R-KY) is one of several members of the legislature who has been at the forefront of this fight.

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In January, Barr reintroduced legislation called the TABS Act “to bring accountability to the CFPB” by amending its funding structure, which would also allow for more direct legislative oversight. Other changes include amending the leadership from a single director to a commission, amending the Dodd-Frank Act to narrow the scope of the agency, increasing reporting standards, including cost-benefit analyses, or, depending on how bold Republicans wish to be, dismantling the agency.

DOGE, Musk, and others are right to target the CFPB. It’s a largely unaccountable agency that wields significant unchecked regulatory power to impose rules, levy fines, and engage in lawfare. DOGE may be capable of minimizing waste, and a new director can be very impactful by essentially doing less. But lasting change rests in the hands of Congress.

Caroline Melear is a resident fellow on the Finance, Insurance, and Trade team at the R Street Institute.