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D.C. Circuit Panel Vacates Block on CFPB Mass Layoffs

The decision assigns large-scale job-loss disputes to the Civil Service Reform Act’s process, opening a narrow window for an en banc appeal to stall the firings

Overview

  • A 2–1 appeals-court panel overturned Judge Amy Berman Jackson’s injunction that had halted the Trump administration’s plan to cut about 1,500 CFPB positions.
  • The majority held that challenges over mass federal layoffs cannot be reviewed under the Administrative Procedure Act in district court but must proceed through the Civil Service Reform Act’s specialized review.
  • With the injunction lifted, the CFPB is poised to resume its reduction-in-force, targeting roughly 80–90% of the agency’s workforce and cancelling hundreds of contracts.
  • Employee unions have seven days to petition the full D.C. Circuit for an en banc rehearing, which would automatically pause any further firings pending the court’s decision.
  • In her dissent, Judge Cornelia Pillard warned that the ruling could inflict irreversible harm on the bureau’s core consumer-protection and enforcement functions.