Report: Russell Vought Expected To Remain At CFPB As Senior Adviser Pending Brian Johnson’s Confirmation

According to a report by Eleanor Mueller of Semafor, Russell Vought is expected to remain at the Consumer Financial Protection Bureau in a senior adviser role after his service as Acting Director ends on August 1, continuing until Brian Johnson is confirmed by the Senate and sworn in as CFPB Director.

Although the CFPB and the White House have not yet publicly confirmed the arrangement, the reported plan would provide continuity in the Bureau’s leadership during what has become one of the most consequential transition periods in the agency’s history.

The report comes as the CFPB continues to grapple with several significant issues, including pending litigation over the Bureau’s proposed reduction-in-force, implementation of the Bureau’s revised organizational structure, ongoing efforts to reconsider or rescind a number of regulations adopted during the Chopra Administration, and the anticipated issuance of a final rule implementing Section 1033 of the Dodd-Frank Act governing consumer financial data rights.

A Practical Solution to an Unusual Transition

If the report proves accurate, the arrangement would make practical and legal sense.

Because Congress created the CFPB, only Congress can abolish it. While Acting Director Vought has dramatically reduced the Bureau’s enforcement activity, supervision, staffing, and budget during his tenure, the agency continues to perform a number of statutory responsibilities that require day-to-day management.

Keeping Vought at the Bureau in an advisory capacity would help avoid a leadership vacuum while Brian Johnson completes the confirmation process and assumes office.

The timing is particularly significant because the litigation challenging the CFPB’s proposed reduction in force remains pending. As readers of this blog know, the district court has stayed further proceedings to permit Johnson, if confirmed, to review the proposed staffing reductions and determine whether he wishes to modify, continue, or abandon the current plan before the litigation proceeds further.

What It May Signal

From a legal standpoint, Mark Paoletta, the current Deputy Director, will become the Acting Director as of August 1 when Russell Vought’s term as Acting Director expires. We would anticipate that the de facto acting director will continue to be Russell Vought on August one until Brian Johnson is confirmed and sworn in.

During Vought’s tenure, the Administration pursued an aggressive effort to reduce the CFPB’s footprint by sharply curtailing enforcement, attempting to reduce staffing dramatically, settling or dismissing many pending enforcement matters, reducing the Bureau’s funding, and reconsidering numerous regulations adopted during the Biden Administration.

Brian Johnson, by contrast, is widely expected to lead a more conventional Republican CFPB. While few observers expect a return to the aggressive regulatory and enforcement posture of former Director Rohit Chopra, Johnson’s background, including his prior service as the CFPB’s Deputy Director under Kathy Kraninger, his work on the House Financial Services Committee, and his private-sector experience, suggests a greater emphasis on stable management, targeted enforcement, and a more predictable regulatory agenda.

Indeed, during his recent Senate confirmation hearing, Johnson indicated that he intends to take a fresh look at the Bureau’s staffing needs, consistent with the district court’s direction in the pending litigation.

What to Watch

Several questions remain unanswered.

First, the Senate must still confirm Johnson. While his confirmation appears likely, the timing remains uncertain, particularly with the Senate’s August schedule.

Second, it remains to be seen precisely what responsibilities Vought would retain as a senior adviser and how actively he would participate in Bureau operations after August 1.

Finally, the transition may provide the first indication of how much continuity—or change—the financial services industry should expect under Johnson’s leadership. Industry participants will be watching closely for decisions regarding the reduction in force, supervision, enforcement priorities, pending rulemakings, and implementation of the CFPB’s surprisingly active regulatory agenda.

We will continue to monitor these developments and report on any official announcement from the White House or the CFPB, as well as any further information regarding the transition to Brian Johnson’s leadership.