AUSTIN – On Nov. 27, Attorney General Ken Paxton joined a coalition of five states led by West Virginia in support of President Trump’s authority to appoint temporary leadership at the nation’s Consumer Financial Protection Bureau until a permanent director is nominated and confirmed.
The coalition expressed their support for this move in a letter to President Trump and U.S. Attorney General Jeff Sessions.
In doing so, the group specifically objects to an attempt by CFPB’s former director to appoint his own temporary successor as acting director.
“It is clear that the acting director’s role affords significant influence over decisions that affect day-to-day lives of the people of our states and the country as a whole,” the attorneys general wrote in the letter.
“The opposite result would allow an unelected outgoing agency director to choose a temporary successor who may be at odds with the executive branch’s understanding of the agency’s mission and statutory mandate – and thereby continue the CFPB’s practice of overreaching regulation that harms the interests of consumers and small financial institutions.”
In their letter, the states contend federal law, prior administrative opinions and a federal appeals court decision all support President Trump’s authority to name an acting director.
The need for efficient administration within the executive branch also backs the statutory authority for President Trump’s position in designating a temporary leader.
Texas and West Virginia were joined by Alabama, Arkansas, and Oklahoma in writing this letter.