The Federal Reserve’s inspector general (IG) has launched a review of the Trump administration’s actions targeting the Consumer Financial Protection Bureau (CFPB). The probe will focus on the administration’s attempts to lay off a large portion of the CFPB’s workforce and cancel existing agency contracts.

The IG’s office informed Sen. Elizabeth Warren D-Mass., and Sen. Andy Kim D-N.J., of the inquiry in a june 6 letter, according to reports. The senators had requested a review of the consumer agency’s new leadership’s actions.

“We had already initiated work to review workforce reductions at the CFPB” in response to an earlier request from lawmakers, acting Inspector General Fred Gibson stated in the letter. “We are expanding that work to include the CFPB’s canceled contracts.”

The investigation comes after Trump’s acting CFPB head Russell Vought took over in February and directed employees to cease work. Vought, along with operatives from Elon Musk‘s Department of Government Efficiency, than moved to lay off a meaningful portion of the agency’s staff and terminate contracts with external providers.

These actions prompted Warren and Kim to request that the Fed IG and the Government Accountability Office (GAO) review the legality of Vought’s actions and assess the extent to which they impeded the CFPB’s ability to fulfill its mission. The GAO informed the lawmakers in April that it would examine the matter.

Senator Kim’s Response

“As Trump dismantles vital public services,an independent OIG investigation is essential to understand the damage done by this administration at the CFPB and ensure it can still fulfill its mandate to work on the people’s behalf and hold companies who try to cheat and scam them accountable,” Kim said in a statement.

“As Trump dismantles vital public services, an independent OIG investigation is essential…”

The Fed IG office functions as an independent watchdog over both the Federal Reserve and the CFPB. It possesses the authority to examine agency records, issue subpoenas, and conduct interviews with personnel. The office can also refer criminal matters to the Department of Justice.

Shortly after assuming office, Trump removed more than 17 inspectors general across various federal agencies. However, Michael Horowitz, the IG for the Justice Department as 2012, was spared and has been named as the incoming watchdog for the Fed and CFPB.

Horowitz, who is scheduled to begin his new role at the end of this month, was reportedly commended by Trump supporters for uncovering issues related to the FBI’s handling of its investigation into Trump’s 2016 campaign.

CFPB’s Future Uncertain

The future of the CFPB is currently uncertain, pending a decision from a federal appeals court. While judges temporarily blocked Vought’s efforts to lay off employees, the court is now considering the Trump administration’s appeal regarding its plans for the agency.