A Consumer Financial Protection Bureau (CFPB) employee testified in court that she believed a plan to dismantle the agency was still on track, contradicting the Justice Department’s narrative presented by top officials. The employee, who remains anonymous due to fear of retaliation, said her team discussed implementing Phase 2 of a plan to wind down the CFPB, which would involve firing hundreds of employees.
The testimony came as part of a federal court case brought by a union and other groups challenging President Donald Trump’s efforts to dismantle the agency. The employee testified that she attended meetings where officials discussed implementing Phase 1 of the plan, which included firing an initial 1,200 employees, despite a court order temporarily halting mass terminations.
The CFPB Chief Operating Officer Adam Martinez testified earlier this week that his team had slowed down efforts to dismantle the agency due to political appointees, including acting head Russ Vought and legal adviser Mark Paoletta. However, the employee’s testimony suggests that these officials were actively pushing for the layoff plans to proceed.
Judge Amy Berman Jackson expressed concern over the “factual situation” and said she was concerned about preserving an agency that could be revived if necessary. The judge is considering issuing a preliminary injunction to allow the CFPB to continue operating while the litigation continues.
The employee’s testimony revealed that her team had been given marching orders to implement mass layoffs quickly, with the goal of laying off 1,200 employees on the same day as the Trump appointees arrived at the agency. The employee testified that she received an instruction from another supervisor to speed up the process despite a court order temporarily halting mass terminations.
The case highlights the ongoing battle between President Trump’s administration and federal employee unions over the future of the CFPB, which was created in response to the 2008 financial crisis.
Source: https://edition.cnn.com/2025/03/11/politics/cfpb-court-doge-testimony/index.html