The Trump Administration’s Rapid Deregulatory Push: What It Means for American Workers and Consumers
A Broad Regulatory Rollback with Far-Reaching Consequences
The Trump administration has wasted little time in advancing its deregulatory agenda, rolling back rules, halting investigations, and withdrawing from lawsuits that once held employers accountable for discrimination. This swift and expansive effort has significantly weakened key regulatory agencies, including the Consumer Financial Protection Bureau (CFPB), the Equal Employment Opportunity Commission (EEOC), the National Labor Relations Board (NLRB), and the Securities and Exchange Commission (SEC). These agencies, once fixtures of American consumer and worker protections, are now being stripped of their authority and capacity to act. The result is a federal government that is increasingly unable—or unwilling—to protect ordinary Americans from exploitation, fraud, and workplace discrimination.
Consumer advocates argue that the Trump administration’s actions amount to a “lawless process” of deregulation, achieved not just through rule changes but also through mass firings and operational shutdowns. Speaking about the situation, Georgetown Law professor Adam Levitin noted, “This is deregulation by firings.” While it is common for new administrations to pause or revise regulations inherited from previous governments, President Trump’s approach has been particularly aggressive. By downsizing the federal workforce and halting enforcement actions, the administration has effectively neutered agencies responsible for safeguarding workers, consumers, and homeowners.
The Consumer Financial Protection Bureau: A Prime Target of Deregulation
One of the most striking examples of the Trump administration’s deregulatory push is the overhaul of the Consumer Financial Protection Bureau (CFPB). Established after the 2008 financial crisis to regulate financial services companies and protect consumers, the CFPB has been brought to a near standstill under President Trump’s leadership. Russell Vought, the acting director of the CFPB, has swiftly dismantled its operations. He ordered employees to cease all “supervision and examination activity,” directed the agency’s lawyers to delay a rule related to medical debt on credit scores, and even shut down the agency’s offices for a week. Additionally, over 70 employees, including enforcement lawyers, were laid off just hours before Jonathan McKernan, a former FDIC official, was appointed as the agency’s new director.
Perhaps most concerning is the broader Courses of these actions. The CFPB’s Enforcement Division has ended contracts with expert witnesses who play a crucial role in evaluating evidence and testifying in cases against companies. This move has effectively hobbled the agency’s ability to pursue legal action against financial services firms. The CFPB was particularly active under the Biden administration, including filing a lawsuit against Capital One for allegedly misleading consumers about a high-yield savings account. However, under Trump, the agency appears to have abandoned its mission to hold financial institutions accountable.
The CFPB has also caught the attention of Elon Musk, the tech billionaire, who has openly called for the agency’s demise. Musk is currently developing a payment platform on his social media platform, X, which would fall under the CFPB’s regulatory oversight. His stance reflects the growing animosity toward the agency from powerful corporate interests.
The Securities and Exchange Commission: A Shift in Crypto and Climate Change Policies
At the Securities and Exchange Commission (SEC), the Trump administration has also made significant changes, particularly in its approach to crypto regulation and climate change disclosures. Acting Chair Mark Uyeda has established a crypto task force aimed at developing a regulatory framework for the industry, moving away from the enforcement-heavy approach of his predecessor, Gary Gensler. This shift has been welcomed by the crypto industry, which viewed Gensler’s methods as overly aggressive. However, Uyeda has also downsized the SEC’s crypto enforcement unit, which once had over 50 lawyers and investigators. Some team members have been reassigned to other divisions, while at least one top lawyer involved in crypto cases has been moved entirely out of the enforcement division.
The SEC has also paused its defense of a rule requiring public companies to disclose how their operations impact climate change. This rule, which was one of Gensler’s signature achievements, has been criticized by many U.S. companies as too costly to implement. Additionally, President Trump has signed an executive order directing Attorney General Pam Bondi to halt enforcement of the Foreign Corrupt Practices Act (FCPA), which prohibits U.S. companies from bribing foreign officials to secure government contracts. The SEC, along with the Department of Justice, is responsible for enforcing the FCPA, and this pause could have far-reaching implications for corporate accountability.
The Equal Employment Opportunity Commission: Protecting Transgender Workers in Jeopardy
The Equal Employment Opportunity Commission (EEOC), which is tasked with enforcing federal antidiscrimination laws, has also been impacted by the Trump administration’s deregulatory push. In recent weeks, the agency has paused litigation in a case involving a transgender employee who was allegedly discriminated against by a hog farm. The case, which included allegations of workplace harassment, was put on hold to ensure compliance with President Trump’s executive order on “Restoring Biological Truth to the Federal Government.” While an EEOC spokesman emphasized that the agency continues to enforce antidiscrimination laws, the move has raised concerns about the future of cases involving transgender workers.
In September, the EEOC filed a lawsuit against a hotel chain for allegedly firing a transgender housekeeper who had reported workplace harassment. At the time, a regional EEOC attorney stated that preventing and remedying discrimination against LGBTQ+ individuals remained a key priority for the agency. However, with the issuance of the “biological truth” executive order, the Trump administration has made it clear that its priorities lie elsewhere. Shortly after the order was issued, the agency fired two Democratic commissioners and its general counsel, further signaling a shift in its approach to transgender rights.
Business Groups Applaud Regulatory Relief, But Critics Raise Concerns
While business groups like the U.S. Chamber of Commerce have long advocated for regulatory relief, critics warn that the Trump administration’s approach is both extreme and reckless. The Chamber of Commerce, in a January report, listed regulatory rollback as one of its top priorities for the year, singling out the CFPB for what it described as “egregious” overreach. However, legal experts like Kristin E. Hickman of the University of Minnesota Law School caution that only Congress has the authority to eliminate a congressionally created agency like the CFPB. While presidents have some flexibility in shaping an agency’s authority, Hickman notes that there is “a lot of wiggle room” when it comes to expanding or shrinking an agency’s scope.
Despite these legal constraints, the Trump administration’s actions have had a profound impact on the ability of regulatory agencies to function effectively. By halting enforcement actions, firing employees, and shutting down critical operations, the administration has sent a clear message that it is no longer in the business of protecting workers and consumers. This shift has left many wondering whether these agencies will ever regain their former strength or if they will instead become hollow shells of their former selves.
The Broader Implications of the Trump Administration’s Deregulatory Push
The cumulative impact of the Trump administration’s deregulatory actions is both sprawling and profound. From pausing climate change initiatives to gutting protections for transgender workers, the administration has systematically dismantled policies and programs designed to safeguard vulnerable populations. One of the most striking examples of this trend is a recent change to a federal housing program that was originally intended to protect against gender discrimination. Scott Turner, the new secretary of the Department of Housing and Urban Development (HUD), announced that the agency would no longer enforce actions related to what he termed “far-left gender ideology.” Turner framed the decision as a return to “what the Lord established from the beginning when he created man in His own image,” signaling a deeply ideological underpinning to the move.
Perhaps most concerning, however, is the broader message these changes send about the role of government in American life. By gutting regulatory agencies and abandoning their enforcement missions, the Trump administration is advancing a vision of government that is smaller, weaker, and less inclined to intervene on behalf of the public. While this approach may find favor among business groups and ideological opponents of government regulation, it raises serious questions about the long-term consequences for workers, consumers, and the broader economy. As the administration continues to push its deregulatory agenda, one thing is clear: the era of robust consumer and worker protections in America appears to be coming to a close.
