TRENTON, N.J. — A coalition of 23 attorneys general, led by New Jersey Attorney General Matthew J. Platkin and New York Attorney General Letitia James, is opposing efforts by the Trump administration and Elon Musk to defund and dismantle the Consumer Financial Protection Bureau (CFPB).
In an amicus brief filed in the U.S. District Court for the District of Maryland, the attorneys general argue that eliminating the CFPB would harm consumers and weaken enforcement of federal consumer protection laws. The independent agency, established in 2011 following the Great Recession, oversees financial institutions and has recovered more than $20 billion for consumers.
“Through an unelected billionaire, President Trump is attempting to destroy a critical watchdog that has saved the homes of New Jerseyans, returned hard-earned money to the pockets of our residents, and fought to protect consumers from the abusive conduct of major corporations,” Platkin said.
On February 9, the Trump administration directed the CFPB to halt ongoing investigations and stop initiating new cases. The move has drawn sharp criticism from state officials, who say it will reduce oversight of major financial institutions and could lead to consumer harm similar to that seen before the 2008 financial crisis.
The attorneys general warn that dismantling the agency could make it more difficult for consumers to report fraud and allow large banks to operate with less regulatory scrutiny. Attorneys general from 21 other states and the District of Columbia joined the brief in support of maintaining the agency.
State attorneys general are pushing back against the Trump administration’s effort to dismantle a key financial watchdog, warning of potential harm to consumers.