The Republican party has shellacked its clean-cut corporatism, in recent years, with a veneer of economic populism. See JD Vance’s pseudo-criticisms of Wall Street, so gestural they could be mistaken for an interpretive dance routine, or Donald Trump’s stint as a McDonald’s “employee”, which seemed more inspired by his contempt for Kamala Harris than his affection for fry cooks.
But when it comes to how the second Trump administration actually intends to govern, there have already been plenty of signals that they intend to target and weaken – if not outright destroy – the parts of government most beneficial to working people. And right now, the agency most clearly in their crosshairs is the Consumer Financial Protection Bureau (CFPB).
While there’s new fervor behind rightwing efforts to undermine the CFPB – or, indeed, “delete” it, as Elon Musk recently tweeted – these attacks have been ongoing since the agency’s inception. In his first term, in fact, Trump slashed the CFPB’s budget, appointed a vocal critic to run it and rolled back regulations protecting consumers from predatory practices.
Trump and his nearly-half-trillionaire “first buddy” feel threatened for good reason: the Consumer Financial Protection Bureau is one of the few federal agencies created explicitly to help average Americans, and actually given authority to do so. Its efforts have represented some of the Biden administration’s most impactful advances for working people – and gutting it would be among the most devastating anti-consumer moves the Trump administration could make.
The CFPB was born out of the 2008 financial crisis, which saw almost 400 banks fold and American households lose about $17tn in wealth (that’s 42 Elon Musks). The popular narrative rightfully blames predatory lending and securities fraud, but those lapses were only possible because of decades-long bipartisan deregulation. In response, the then Harvard professor Elizabeth Warren proposed a federal agency to centralize regulation of the consumer financial sector, work which had been spread thin across seven different agencies. Rather than being “duplicative”, as Musk has claimed, the CFPB began as a novel effort to make government more responsive, effective and – indeed – efficient.
But not until the current directorship of Rohit Chopra did the CFPB begin fulfilling its true potential. Since his appointment in 2021, Chopra has cracked down on exploitative consumer practices with a fervor not seen since Upton Sinclair stepped into a meatpacking plant.
In the last year, the agency has banned excessive credit card late fees, saving consumers $10bn annually. It has started regulating “buy now, pay later” lenders, which often leave buyers on the hook for expensive purchases they return. It has created a registry of businesses who have repeatedly engaged in illegal practices, finally bringing a tough-on-crime approach to “corporate recidivism”. And just last week, the CFPB announced a rule capping overdraft fees that will return another $5bn to consumers every year.
Chopra has notched these wins while burnishing a dynamic persona that might best be described as swashbuckler meets bureaucrat. He has embraced public engagement in a way most regulators don’t; see his PSAs on medical debt with Rashida Tlaib, the Michigan representative. He has also embraced conflict, prompting some opponents to accuse him of antagonism, as when he sued not just a credit reporting firm but one of its executives for misleading consumers. Still, one populist’s antagonism is most Americans’ vindication, and Chopra has even drawn reluctant praise from Republicans such as the onetime speaker pro tempore Patrick McHenry.
Other than consumers, arguably the biggest beneficiary of Chopra’s ferocity has been Joe Biden. The CFPB has accomplished many of his administration’s most unambiguously progressive (and practical) victories. Chopra joins a class of hugely productive Biden appointees – Lina Khan at the FTC, Marty Walsh and Julie Su at the Department of Labor, and a slate of pro-worker appointees at the National Labor Relations Board – who reaffirm the adage that “personnel is policy”.
Even in the administration’s waning days, Khan’s FTC has helped unravel a merger between Kroger and Albertsons that would probably have spiked food prices, and raised alarms about “task scams” that have cheated targets out of millions. In this respect at least, Biden has taken a page from Franklin Delano Roosevelt, who gleefully stocked his cabinet with unabashed crusaders such as Frances Perkins, the mother of the New Deal.
While many Democrats continue post-election recriminations, many will no doubt feel tempted to disavow anything and everything associated with the first one-term Democratic president since Carter. But a prevailing lesson of 2024 has been that voters respond to brash anti-corporate messaging, even when it comes from the mouths of an erstwhile venture capitalist and a real estate tycoon who stiffs workers.
So even if the legacies of Chopra, Khan, Walsh and Su aren’t reflected in the next four years of governance, progressives can at least embrace them in their campaign rhetoric – especially in response to Trump’s imminent efforts to deter or even dismantle agencies such as the CFPB in favor of corporate interests.
Three years ago, immediately after his swearing-in ceremony, Chopra wrote a memo describing the CFPB’s most important mission as this: “We must anticipate emerging risks so we can act before a crisis, rather than acting after it is too late.”
It may be too late to avert the crisis of the last election. But it’s also the best time to act in anticipation of the next one.
Katrina vanden Heuvel is the editorial director and publisher of the Nation. She is a member of the Council on Foreign Relations and has contributed to the Washington Post, New York Times and Los Angeles Times
