Overview

• Judge Amy Berman Jackson has paused the Trump administration’s plan to reduce the Consumer Financial Protection Bureau’s workforce by 90% ahead of a key court hearing.
• Newly released court records reveal internal warnings from CFPB employees that the mass layoffs would severely impair the agency’s ability to function, including breaking technical systems and missing legal deadlines.
• The administration, led by acting CFPB director Russell Vought and chief legal officer Mark Paoletta, defends the cuts as part of a strategy to 'right-size' the agency and reduce what they describe as wasteful spending.
• Critics argue that dismantling the CFPB would undermine consumer protections against financial fraud, mortgage abuses, and other predatory practices, jeopardizing the financial system's stability.
• The hearing follows a series of legal battles over the agency’s future, with its legitimacy upheld by the Supreme Court less than a year ago but targeted for elimination under the conservative Project 2025 initiative.