The U.S. Consumer Financial Protection Bureau (CFPB) is implementing significant changes to its inspection priorities, reducing its focus on areas like student loans, medical debt, digital payments, and consumer data. Despite previous calls for the agency’s elimination by President Donald Trump and Elon Musk, the CFPB is shifting its attention towards safeguarding military personnel and veterans from consumer finance threats.

Mark Paoletta, the chief legal officer, outlined these shifts in a memo, signaling a departure from the agency’s previous core areas of work. The CFPB will now concentrate its enforcement and supervision efforts on critical consumer protection issues, particularly those affecting service members and their families. All previous documents outlining enforcement and supervision priorities have been rescinded as part of this reorientation.

Established in 2010 in response to the 2008 financial crisis, the CFPB is the primary federal agency responsible for enforcing consumer financial laws at nonbank institutions. The memo indicates a renewed focus on overseeing “the largest banks” and reducing supervision of nonbanks, which have received more attention in recent years.

Additionally, the agency plans to scale back its oversight of financial services for prisoners and detainees, peer-to-peer platforms, digital payments, and consumer data. Critics have raised concerns about potential conflicts of interest related to Elon Musk’s involvement in government cost-cutting efforts and his company X’s plans to offer payment services.

These changes reflect a strategic shift in the CFPB’s priorities towards protecting vulnerable consumer groups while adapting to evolving financial landscapes.