Court Halts Trump Administration’s Proposed Mass Layoffs at Consumer Financial Protection Bureau

Entrance to CFPB Headquarters Entrance to CFPB Headquarters
Entrance to CFPB Headquarters. Photo by ajay_suresh - Consumer Financial Protection Bureau, CC BY 2.0, via Wikimedia commons.

A federal judge has intervened to halt the Trump administration’s plans to significantly reduce the workforce of the Consumer Financial Protection Bureau (CFPB). The decision comes amid ongoing legal challenges related to the bureau’s future and operations. The judge expressed concern over the administration’s compliance with a previous court order aimed at preserving the bureau until a lawsuit’s merits are fully assessed.

U.S. District Judge Amy Berman Jackson has prohibited any immediate actions involving mass firings or restricting employee access to bureau computer systems. Approximately 1,500 employees were set to be released, leaving about 200, but these plans are now on hold. The judge has scheduled a hearing on April 28 to gather testimonies from officials involved in the reduction in force (RIF) procedures.

President Donald Trump has been pursuing reforms to reshape federal institutions, citing issues of fraud, waste, and inefficiency. The CFPB, in particular, has faced criticism from conservatives and business groups who are unhappy with its regulatory oversight and investigative activities. As part of a broader effort to enhance government efficiency, the bureau has been identified as a priority target for reform by Trump adviser Elon Musk.

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