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Congress Allows Musk’s X Money to Fleece Consumers
Musk’s Access to CFPB Data Could Also Give X Money Unfair Advantage Over Competitors
On Wednesday, the House of Representatives voted to revoke the Consumer Financial Protection Bureau’s final rule allowing the agency to supervise digital payment apps like Venmo, Apple Pay and CashApp the same way the agency monitors companies that issue traditional credit cards and bank accounts. The Senate previously voted to revoke the rule in March. The vote is the latest in a damning and telling chain of events benefiting Elon Musk:
- Nov. 21, 2024: The CFPB finalizes a rule enabling the agency to proactively supervise digital payment apps
- Nov. 27, 2024: Musk tweets “Delete CFPB”
- Jan. 28, 2025: X CEO announces that X Money will debut with a partnership with Visa
- Feb. 7, 2025: Musk’s DOGE staffers enter the CFPB and kick off an effort to shut it down
- March 5, 2025: The Senate votes to revoke the CFPB’s digital payments rule
- April 9, 2025: The House of Representatives votes to revoke the rule
Musk is now on a glide path to launch X Money this year without the watchdog agency to ensure that he follows federal rules mandating data security standards, disputes for fraudulent payments, consumer protections against debanking and more. And through the so-called Department of Government Efficiency, Musk now has access to sensitive information about competitors in the digital payments space like Cash App, PayPal and Venmo that have been investigated by the CFPB, potentially giving X Money an unfair business advantage. Demand Progress has been a strong supporter of the CFPB’s efforts to supervise digital payment platforms.
The following is a statement from Emily Peterson-Cassin, corporate power director at Demand Progress:
“Elon Musk orchestrated a plan to rip off consumers with impunity when he tweeted ‘Delete CFPB’ and Congress just rubber-stamped it. Today’s shameful vote means that X, an app already swarming with bots and scammers, will be able to connect to your bank account and allow fraudsters to take your money without accountability. Thanks to the CFPB’s supervision, $120 million was refunded to consumers who were scammed through Cash App. That kind of policing will be significantly harder now that Congress has voted to strip the CFPB of its ability to proactively watch over payment apps. And thanks to DOGE’s intrusions into the CFPB’s databases, Musk now has access to sensitive financial data from companies investigated by the agency, including virtually all would-be competitors to X Money in the digital payments space.”
Demand Progress amplifies the voice of the people -- and wields it to make government accountable and contest concentrated corporate power. Our mission is to protect the democratic character of the internet -- and wield it to contest concentrated corporate power and hold government accountable.
LATEST NEWS
'No One Voted to Slaughter Hummingbirds': Trump's DOI Guts Bird Protections, Again
"Trump is breaking the law and flouting a court order by handing the fossil fuel industry and polluters this blank check to kill millions of migratory birds," one advocate said.
Apr 12, 2025
The Trump administration moved on Friday to weaken protections for migratory birds threatened by industrial activities, including oil and gas operations.
Acting Solicitor of the U.S. Department of the Interior (DOI) Gregory Zerzan restored an opinion from the first Trump administration that the Migratory Bird Treaty Act (MBTA) "does not apply to the accidental or incidental taking or killing of migratory birds," despite the fact that this opinion was already ruled illegal in federal court.
"Trump is breaking the law and flouting a court order by handing the fossil fuel industry and polluters this blank check to kill millions of migratory birds," said Tara Zuardo, a senior campaigner at the Center for Biological Diversity. "The United States has lost billions of birds over the past 50 years, and that decline will accelerate horrifically because of this callous, anti-wildlife directive. No one voted to slaughter hummingbirds, cranes, and raptors, but this is the reality of Trump's illegal actions today."
"We're not going to succeed in addressing the crisis facing birds and other wildlife if we let this and other historic rollbacks stand."
The new directive comes as birds in the U.S. are under threat, with their numbers falling by around 30% since 1970. A number of factors are responsible for this decline, among them the climate emergency, habitat loss, falling insect populations, window strikes, and outdoor cats. However, conservationists toldThe New York Times that industrial activities would be a greater threat if not for the protection the law provides.
For example, Zuardo told the Times that if U.S. President Donald Trump's interpretation of the law had been in effect following BP's Deepwater Horizon oil spill in 2010—which likely killed over 1 million birds—the company would not have been charged the around $100 million in fines that went to support bird conservation after the disaster.
Friday's directive is part of an ongoing effort over the course of both Trump administrations to weaken the MBTA so that it only targets the purposeful killing of birds, dropping enforcement against accidents such as as oil spills, drownings in uncovered oil pits, trappings in open mining pipes, and collisions with power lines or communication towers.
In 2017, lead Interior Department lawyer Daniel Jorjani issued an initial legal opinion claiming the MBTA only covered purposeful killings. This interpretation was struck down by a federal court in 2020, which argued that the act's "clear language" put it in "direct conflict" with the Trump opinion.
This didn't stop the Trump administration from issuing a final rule attempting to enshrine its interpretation of the MBTA at the end of Trump's first term, which was widely decried by bird advocates.
"We're not going to succeed in addressing the crisis facing birds and other wildlife if we let this and other historic rollbacks stand," Erik Schneider, policy manager for the National Audubon Society, said at the time.
However, months into the presidency of Joe Biden, DOI principal deputy solicitor Robert T. Anderson withdrew the initial 2017 Trump administration opinion after an appeals court, following the request of the U.S. government, dismissed the Trump administration's earlier appeal of the 2020 court decision.
"The lower court decision is consistent with the Department of the Interior's long-standing interpretation of the MBTA," Anderson wrote.
Later, the Biden administration also reversed the formal Trump-era rule weakening the MBTA.
Now, in his second term, Trump is coming for the birds again. The Biden-era withdrawal was one of 20 Biden-era opinions that the Trump DOI suspended in March. It was then officially revoked and withdrawn on Friday.
In justifying its decision, Trump's DOI cited the president's January 20 executive order "Unleashing American Energy," which calls on federal agencies to "suspend, revise, or rescind all agency actions identified as unduly burdensome," making it clear the weakening of protections is largely intended to benefit the fossil fuel and mining industries.
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Human Rights Defenders File Suit Over Trump's 'Unconstitutional' ICC Sanctions
An advocate who has worked with the ICC said the order "actively undermines international justice efforts and obstructs the path to accountability for communities facing unthinkable horrors."
Apr 12, 2025
In a federal court in Maine on Friday, two human rights advocates argued that U.S. President Donald Trump's economic and travel sanctions against International Criminal Court Prosecutor Karim Khan violates their First Amendment rights, because of Trump's stipulation that U.S. citizens cannot provide Khan with any services or material support as long as the sanctions are in place.
The lawsuit was filed by the ACLU on behalf of Matthew Smith, co-founder of the human rights group Fortify Rights, and international lawyer Akila Radhakrishnan.
Trump targeted Khan with the sanctions over his issuing of an arrest warrant for Israeli Prime Minister Benjamin Netanyahu and former Israeli Defense Minister Yoav Gallant, whom he accused of war crimes and crimes against humanity in Gaza.
The plaintiffs argued that stopping U.S. citizens from working with Khan will bring their work investigating other atrocities to a halt.
Smith has provided the ICC with evidence of the forced deportation and genocide of the Rohingya people in Myanmar, but he said he has been "forced to stop helping the ICC investigate horrific crimes committed against the people of Myanmar, including mass murder, torture, and human trafficking."
"This executive order doesn't just disrupt our work—it actively undermines international justice efforts and obstructs the path to accountability for communities facing unthinkable horrors," Smith said in a statement.
"The Trump administration's sanctions may discourage countries, as well as individuals and corporations, from assisting the court, making it harder to bring alleged perpetrators from Israel and other countries to trial."
Charlie Hogle, staff attorney with the ACLU's National Security Project, said it was "unconstitutional" to block the plaintiffs and other humanitarian groups in the U.S. from "doing their human rights work" with the ICC.
Radhakrishnan, who focuses on gender-based violence in Afghanistan, said she was "bringing this suit to prevent my own government from punishing me for trying to hold the Taliban accountable for its systematic violence against women and girls from Afghanistan."
In March, Amnesty International warned that Trump's sanctions would "hinder justice for all victims for whom the [ICC] is a last resort," particularly those in Gaza and the occupied Palestinian territories.
The court "relies on its member states to cooperate in its investigations and prosecutions, including by arresting individuals subject to ICC arrest warrants," said Amnesty. "The Trump administration's sanctions may discourage countries, as well as individuals and corporations, from assisting the court, making it harder to bring alleged perpetrators from Israel and other countries to trial."
"Ultimately, the sanctions will harm all of the ICC's investigations, not just those opposed by the U.S. government," said the group. "They will negatively impact the interests of all victims who look to the court for justice in all the countries where it is conducting investigations, including those investigations the U.S. ostensibly supports—for example in Ukraine, Uganda, or Darfur."
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'Dystopian' Trump Plan for Massive Expansion of ICE Detention Centers Exposed
"This expansion is a disastrous waste of billions of taxpayer dollars that will only line the coffers of the private prison industry," said one ACLU attorney.
Apr 11, 2025
The ACLU on Friday revealed new details about the Trump administration's plans to expand Immigration and Customs Enforcement detention centers in 10 states across the nation, with private prison corporations—whose share prices soared after the election of President Donald Trump—seeking to run at least a half dozen proposed ICE facilities.
The documents, obtained via a Freedom of Information Act request, "signal a massive expansion of ICE detention capacity—including at facilities notorious for misconduct and abuse—which echo reports earlier this week that the Trump administration has sought proposals for up to $45 billion to expand immigrant detention," ACLU said.
"The discovery also comes on the heels of a 'strategic sourcing vehicle' released by ICE earlier this month, which called for government contractors to submit proposals for immigration detention and related services," the group added.
The more than 250 pages of documents obtained by the ACLU "include information regarding facility capacity, history of facility use, available local transport, proximity to local hospitals, immigration courts, and transport, as well as access to local consulates and pro bono legal services."
"Specifically, the documents reveal that Geo Group, Inc. (GEO) and CoreCivic submitted proposals for a variety of facilities not currently in use by ICE," ACLU said.
These include:
- McFarland Detention Center in McFarland, California;
- California City Correctional Center in California City, California;
- North Lake Correctional Center in Baldwin, Michigan;
- Midwest Regional Reception Center in Leavenworth, Kansas;
- Lea County Detention Center in Hobbs, New Mexico; and
- South Texas Family Residential Center in Dilley, Texas.
GEO, CoreCivic, and Management Training Corporation (MTC) "also sought to renew contracts at current ICE detention facilities" in California, Nevada, New Mexico, Texas, and Washington, according to the files.
"The documents received provide important details regarding what we have long feared—a massive expansion of ICE detention facilities nationwide in an effort to further the Trump administration's dystopian plans to deport our immigrant neighbors and loved ones," said Eunice Cho, senior staff attorney at the ACLU's National Prison Project.
"This expansion is a disastrous waste of billions of taxpayer dollars that will only line the coffers of the private prison industry," Cho added.
Indeed, GEO shares have nearly doubled in value since Trump's election, while CoreCivic stock is up 57% over the same period.
Unlike state prisons or country and local jails, which are accountable to oversight agencies, privately operated ICE detention centers are not subject to state regulation or inspection. And although Department of Homeland Security detainees are not convicted criminals and ICE detention centers are not technically prisons, the facilities are plagued by a history of abuse, often sexual in nature, and sometimes deadly.
During Trump's first term, groups including the ACLU sounded the alarm on the record number of detainee deaths in ICE custody, and scandals—including the separation of children from their parents or guardians and forced sterilization of numerous women at an ICE facility in Georgia—sparked widespread outrage and calls for reform from immigrant rights defenders.
However, abuses continued into the administration of former President Joe Biden, including "medical neglect, preventable deaths, punitive use of solitary confinement, lack of due process, obstructed access to legal counsel, and discriminatory and racist treatment," according to a 2024 report published by the National Immigrant Justice Center. Biden also broke a campaign promise to stop holding federal prisoners and immigration detainees in private prisons.
Since Trump took office in January after being elected on a promise to carry out the largest deportation campaign in U.S. history, fresh reports of ICE detainee abuse and poor detention conditions have been reported. These include
alleged denial of medical care, insufficient access to feminine hygiene products, and rotten food at the South Louisiana ICE Processing Center in Basile, Louisiana, where Tufts University Ph.D. student and Palestine defender Rümeysa Öztürk is being held without charge.
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