A federal judge has intervened in the dismantling of the Consumer Financial Protection Bureau (CFPB), blocking mass layoffs for over 1,400 employees. The move comes after a group of employees sued the Trump administration, citing concerns that the agency’s activities have pushed beyond its jurisdiction.
Judge Amy Berman Jackson ruled on Friday that the Trump administration cannot proceed with the layoffs until it provides more evidence about how the terminations are being carried out. The employees were set to lose access to agency systems and their final date of employment was June 16, but a hearing is now scheduled for April 28.
The CFPB has been under scrutiny from conservatives who have called for its dismantling, while some companies, including tech giants, have questioned its expanding oversight. In recent weeks, the agency’s acting director, Russell Vought, announced that cases on medical debt, student loans, and consumer data would be de-prioritized.
The National Treasury Employees Union, which represents part of the CFPB workforce, initially sued the Trump administration in February to preserve the agency. The judge’s ruling initially blocked the layoffs, but was later overturned by an appellate court.
Despite this, the judge has now intervened again, blocking the widespread layoffs until more evidence is presented. Two current CFPB employees continue to work on their cases, including ongoing litigation.
Source: https://www.wired.com/story/cfpb-terminations-paused-trump