On February 11, the CFPB reportedly canceled more than $100 million in vendor contracts as part of a cost-cutting initiative by its new leadership. The cuts include 102 contracts related to the enforcement division, 33 related to the Director’s office, and 16 associated with the supervision unit. This decision follows scrutiny from DOGE, which is reviewing the CFPB’s procurement data (covered by InfoBytes here).
An internal list of “essential” contracts (i.e., those not subject to cuts) included those for security, mailroom systems, and janitorial services. Contracts for cloud hosting, e-discovery, and IT support were not listed as essential, meaning they could be subject to funding cuts.
The CFPB had budgeted $224 million for “other contractual services” in fiscal 2024. As previously covered by InfoBytes, Acting Director Russell Vought opted to not take its next draw of “unappropriated funding,” asserting that the Bureau’s current balance of $711.6 million in Fed funds was “excessive.”
