Washington: The heads of enforcement and supervision at the U.S. Consumer Financial Protection Bureau (CFPB) announced their resignations on Tuesday, citing the Trump administration’s directive to halt all agency activities, according to internal emails reviewed by Reuters.
However, the White House Office of Management and Budget (OMB) disputed their claims, stating that the officials were instead placed on administrative leave due to alleged insubordination. Last week, President Donald Trump appointed OMB Director Russell Vought as acting director of the CFPB, a federal agency overseeing financial consumer protection.
Internal Tensions and Sudden Departures
Deputy Director Zixta Martinez, the CFPB’s second-highest-ranking official, was also placed on administrative leave, though no official reason was provided, according to a source familiar with the matter. Martinez declined to comment, and the OMB did not immediately respond to inquiries regarding her status.
In internal emails, Enforcement Director Eric Halperin and Supervision Director Lorelei Salas told colleagues their roles had become untenable under the current restrictions.
“As you know, we have been ordered to cease all work. I don’t believe in these conditions I can effectively serve in my role, which is protecting American consumers,” Halperin wrote, adding that he had made the “difficult decision” to resign immediately.
Salas echoed his concerns, stating that she believed Vought’s directive to halt all supervisory work was unlawful. “It has been an honor to be part of this team—I thank you and ask that you stay strong,” she wrote in her farewell email.
White House Disputes Resignations
Despite their statements, an OMB spokesperson claimed that neither Halperin nor Salas had officially resigned, asserting that both were instead placed on administrative leave. The spokesperson accused Halperin of insubordination, referencing a Politico report that suggested he had defied the administration’s order by instructing staff to continue certain legal work.
Internal emails reviewed by Reuters, however, indicated that Salas had formally given notice and that CFPB human resources had already processed her departure.
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Halperin had reportedly informed CFPB enforcement staff on February 6 that while Treasury Secretary Bessent—then serving as the CFPB’s acting director—had barred court appearances and filings, other legal work could still continue under existing guidelines. Neither Halperin nor Salas could be reached for comment.
CFPB’s Future in Question
Since taking charge, Vought has worked to dismantle the CFPB’s operations. The agency, established in the wake of the 2008 financial crisis to safeguard consumers from predatory financial practices, has faced significant opposition from the Trump administration, which views it as an overreach of government power.
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The administration’s actions have sparked backlash, with CFPB employees, union representatives, and Democratic lawmakers staging protests outside the agency’s headquarters. Employee unions have also filed legal challenges in an effort to reverse the administration’s orders.
