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5mo ago

Federal Judge Halts Mass Layoffs at Consumer Financial Protection Bureau

The Trump administration's attempt to terminate 90% of CFPB staff faces legal roadblocks as a judge orders a temporary stop to the reductions.

Supporters of the Consumer Financial Protection Bureau rally after Acting Consumer Financial Protection Bureau Director Russell Vought told all of the agency's staff to stay away from the office and do no work, outside the CFPB in Washington, U.S., February 10, 2025. REUTERS/Craig Hudson/File Photo
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Overview

  • U.S. District Judge Amy Berman Jackson temporarily blocked the termination of 1,500 CFPB employees, citing potential violations of prior court orders.
  • The Trump administration had moved forward with mass layoffs despite earlier legal rulings requiring individual assessments for each employee's role.
  • The CFPB, reduced to approximately 200 staff members, had announced a shift in focus toward large banks and military-related fraud while deprioritizing areas like student loans and medical debt.
  • Critics, including Senator Elizabeth Warren, argue the downsizing undermines the CFPB’s ability to fulfill its statutory duties to protect consumers from financial fraud.
  • A hearing is scheduled for April 28 to determine whether the layoffs complied with legal requirements and whether they interfere with the agency’s mandated functions.