Overview

• The U.S. Court of Appeals in Washington, D.C., reinstated a lower court’s injunction barring the Trump administration from laying off over 1,400 Consumer Financial Protection Bureau employees.
• The ruling ensures no further layoffs will occur before a May 16 hearing to determine whether the administration’s actions violated federal law or existing court orders.
• The Government Accountability Office has launched an investigation into the administration’s efforts to dismantle the CFPB, following a request from Senate Democrats.
• CFPB leadership, under Acting Director Russell Vought, has already rescinded key enforcement priorities, leaving major consumer protections like overdraft fee caps and payment app regulations in jeopardy.
• Ethics concerns have emerged after reports revealed a DOGE aide involved in the CFPB layoffs owns stock in companies regulated by the agency, raising potential conflicts of interest.