A congressional watchdog agency is investigating former President Donald Trump's efforts to dismantle the Consumer Financial Protection Bureau (CFPB) amidst resistance from Senate Democrats and ongoing legal challenges. The CFPB, established in 2010 to protect consumers from fraudulent business practices, has faced criticism from Republicans who argue it exceeds its congressional mandate. Trump's administration planned to lay off nearly 90% of the CFPB's staff, prompting legal action from unions and consumer advocacy groups. Courts have temporarily halted these layoffs, and the DC Circuit Court of Appeals is considering the legality of the administration's actions. Key senators, including Elizabeth Warren, have requested a detailed account of how the CFPB can fulfill its responsibilities with a drastically reduced staff, as the agency's ability to function is under scrutiny.

The congressional watchdog agency is reviewing Donald Trump's attempts to dismantle the Consumer Financial Protection Bureau, a move that has attracted significant scrutiny from Senate Democrats and prompted legal challenges.

The CFPB was created in response to the 2008 financial crisis to provide consumer protection and oversight of the financial industry, but it has been a target for Republicans who claim it overreaches its mandate.

Trump's administration planned to lay off nearly 90% of the CFPB's workforce, a decision that has been legally contested by unions and consumer advocacy groups, resulting in a temporary halt by the courts.

The DC Circuit Court of Appeals is examining whether the administration's sweeping terminations of CFPB staff comply with legal standards, and will hear arguments on this issue on May 16.

Senators Elizabeth Warren and Andy Kim requested the US Government Accountability Office to investigate the administration's actions, while 40 Senate Democrats demanded a detailed plan on how the agency will operate with a significantly reduced staff.

The administration asserts that its layoff plans comply with the law, despite allegations that remaining employees lack the necessary skills to carry out the CFPB's statutory functions.

Legal documents reveal the administration's initial intent to expedite the layoffs, which was thwarted by court orders, reflecting the ongoing tension between the agency's leadership and legal challengers.