A federal judge in Washington, D.C. has temporarily halted the planned mass firings of nearly 1,500 employees at the Consumer Financial Protection Bureau (CFPB). District Judge Amy Berman Jackson ordered an immediate halt to the firings, which were set to take effect on Friday evening. The judge expressed concerns about the rushed efforts to implement a Reduction In Force (RIF) and alleged that CFPB leadership may have violated a preliminary injunction.
The preliminary injunction, which was upheld by the D.C. Circuit in part, required individual assessments of employee performance before terminations. Jackson stated that the reductions would not occur in the meantime and ordered the agency to inform affected employees of this change.
As part of her order, Jackson also scheduled a hearing for April 28, where CFPB general counsel Mark Paoletta is expected to testify under oath, along with Gavin Kliger, a staffer from Elon Musk’s DOGE operation. The government was also ordered to provide any communications between Paoletta, Office of Management and Budget Director Russell Vought, and Kliger.
The Trump administration had planned to reduce the agency staff from 1,680 employees to 206, citing a need for a “smaller, more efficient operation” that aligns with the new leadership’s priorities. However, Jackson’s ruling casts doubt on this claim, suggesting that the firings may be part of a broader effort to eliminate or downsize the CFPB.
The CFPB, created in 2011, has been a key regulator of consumer financial products and services, including mortgages, credit cards, bank fees, student loans, and data collection. Its oversight applies to companies that break laws related to these areas. Since its establishment, the CFPB has recovered $20.7 billion for American consumers.
The decision is seen as a significant victory for consumer advocates who have long argued that the CFPB plays a critical role in safeguarding against unfair business practices.
Source: https://abcnews.go.com/Politics/judge-orders-halt-mass-firings-consumer-financial-protection/story?id=120951391