Appeals Court Limits Trump Administration's Efforts to Dismantle CFPB

The court allows downsizing of the agency within strict guidelines but prohibits actions that would undermine its statutory functions.

The U.S. DC Circuit Court of Appeals ruled that the Trump administration can reduce the size of the Consumer Financial Protection Bureau (CFPB) but cannot dismantle it entirely.
The decision permits staff reductions and contract cancellations only after 'particularized assessments' confirm they will not impair the agency's ability to fulfill its statutory duties.
This ruling partially overturns a previous injunction by Judge Amy Berman Jackson, which had blocked the administration's downsizing efforts entirely.
The CFPB, established after the 2008 financial crisis to protect consumers, remains operational under the court's restrictions, preserving its core functions.
Further legal challenges, including potential appeals by the National Treasury Employees Union, are expected as the case continues to unfold.