Overview

• A federal court hearing on Tuesday will determine if the Trump administration can proceed with plans to terminate 90% of the Consumer Financial Protection Bureau's staff.
• Judge Amy Berman Jackson previously blocked the layoffs, citing concerns about the agency's ability to function and maintain critical operations.
• Court filings reveal CFPB employees warned that mass firings would disrupt technical systems, miss legal deadlines, and jeopardize preserved data.
• Acting CFPB leadership, under Mark Paoletta, has rescinded all enforcement and supervision priorities, scaling back consumer protection efforts significantly.
• The layoffs and regulatory rollback align with the conservative Project 2025 agenda, which seeks to downsize or dismantle the CFPB entirely.