Federal Court Blocks Trump Administration's Bid to Dismantle CFPB

A preliminary injunction reinstates Consumer Financial Protection Bureau operations as the Trump administration's appeal faces procedural challenges.

Judge Amy Berman Jackson issued a preliminary injunction on March 28, 2025, halting the Trump administration's efforts to dismantle the CFPB and reinstating employees, contracts, and mandated operations.
The Trump administration appealed the ruling to the U.S. Court of Appeals for the District of Columbia but has been criticized for procedural missteps, including filing in the wrong court.
The injunction preserves the CFPB's status quo while legal proceedings continue, blocking mass layoffs and ensuring the agency fulfills its statutory obligations.
The CFPB, created after the 2008 financial crisis, has returned over $21 billion to consumers and remains a key regulator of financial practices, including student loan oversight.
This legal battle underscores broader debates on executive authority, government downsizing, and the role of consumer protection in financial regulation.