Labor & Employment Law Daily Wrap Up, AGENCY NEWS—GAO and CFPB OIG to investigate Bureau shutdown by Trump-Musk, (May 7, 2025)

By WK Editorial Staff

Two separate inquiries are poised to shed light on questions about the CFPB's status and the implications of alleged access to sensitive data.

Congresswoman Maxine Waters (D-Calif.), Ranking Member of the House Financial Services Committee, has announced that the Government Accountability Office (GAO) and the Office Inspector General for the Federal Reserve Board and Consumer Financial Protection Bureau (OIG) will start investigations into the alleged shutdown of the CFPB by President Trump and Elon Musk. This action follows a formal request made by Waters, alongside Representatives Al Green (D-Texas) and Bill Foster (D-Ill.), earlier this year (see Banking and Finance Law Daily, Mar. 3, 2025).

Waters expressed appreciation for the response from both the GAO and the OIG. She highlighted her concerns regarding the purported unilateral closure of the CFPB by President Trump and Elon Musk, whom she referred to as a “co-President.” Waters emphasized the importance of the CFPB's role in safeguarding vulnerable groups such as seniors, veterans, and working-class families from financial exploitation. She underscored the CFPB’s track record of returning $21 billion to affected American families.

Moreover, Waters expressed her alarm over Elon Musk’s alleged access to sensitive consumer data, citing potential violations of data privacy. She criticized the Trump administration for its lack of transparency and responsiveness to Congressional inquiries on this matter. Waters noted that she “look[s] forward to reviewing the GAO’s and Inspector General’s findings in the near future” and was “especially pleased that the investigation will dive into Elon Musk’s access to the personal and sensitive consumer data of millions of Americans.”

The OIG’s office responded to Waters' request, noting that they will focus on questions related to data access and information security at the CFPB. They outlined plans to conduct an annual audit of the CFPB's information security program, assessing the effectiveness of its policies and controls. The audit, aligned with the Federal Information Security Modernization Act of 2014, is expected to conclude by the fall.

Additionally, the GAO acknowledged receipt of the request and confirmed the commencement of a review into the efforts to dismantle the CFPB under the Trump administration. The GAO assured coordination with the OIG to avoid duplicating efforts and promised to engage with Waters and her colleagues to align on objectives and methodologies.

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