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Judge Weighs Halting Trump Administration's Efforts to Dismantle CFPB

Witness testimony reveals ongoing plans to wind down the Consumer Financial Protection Bureau despite a court order temporarily halting mass layoffs.

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People hold up signs during a protest in support of the Consumer Financial Protection Bureau (CFPB), Monday, Feb. 10, 2025, at CFPB headquarters in Washington. (AP Photo/Jacquelyn Martin)
A security officer works inside of the Consumer Financial Protection Bureau (CFPB) building headquarters Monday, Feb. 10, 2025, in Washington. (AP Photo/Jacquelyn Martin)
The exterior of the Consumer Financial Protection Bureau headquarters is seen on February 10, 2025, in Washington, DC.

Overview

  • Federal Judge Amy Berman Jackson is considering issuing a preliminary injunction to stop the Trump administration's actions aimed at dismantling the CFPB.
  • Testimony from CFPB employee 'Alex Doe' indicates that plans to lay off staff and shutter the agency remain active, contradicting administration claims of compliance with court orders.
  • The CFPB's Chief Operating Officer, Adam Martinez, described the agency's recent turmoil as a 'hostile takeover,' though he suggested some progress toward resuming statutory functions.
  • The court heard that a February stop-work order led to a backlog of over 16,000 unresolved consumer complaints, including urgent foreclosure cases.
  • The administration's actions face legal challenges from unions and advocacy groups, who argue that dismantling the CFPB exceeds executive authority and requires Congressional approval.