A federal judge blocked the Trump administration from dismantling the consumer finance protection bureau on Friday. The judge also said that she is “deeply concerned” that the officials aren’t complying with her earlier order that maintains the bureau’s existence until she rules on the merits of a lawsuit seeking to preserve it.
US district judge Amy Berman Jackson ruled that the authority can’t immediately proceed with the decision to mass fire hundreds of employees.
During the courtroom hearing, Jackson made it clear that no mass firings or shutdown of employee access to CFPB computer systems would be allowed until further notice. “I’m willing to resolve it quickly, but I’m not going to let this RIF go forward until I have,” she said, referring to the proposed “reduction in force” strategy.
The administration’s plan would see around 1,500 of the bureau’s employees dismissed, reducing its staff to just 200. A formal hearing has been scheduled for April 28, when key officials involved in the RIF process will be called to testify.
The CFPB, established to protect consumers from financial abuse, has been a frequent target of criticism from conservatives and businesses.
Republican Trump, during his second tenure, sought to reshape the federal government, calling it fraud, waste and abuse. Tesla owner and Trump’s ally Elon Musk has often made the bureau a top target of his Department of Government Efficiency.
The lawsuit challenging the bureau’s shutdown is still pending, but for now, the agency remains intact — and so do the jobs of its workers.
US district judge Amy Berman Jackson ruled that the authority can’t immediately proceed with the decision to mass fire hundreds of employees.
During the courtroom hearing, Jackson made it clear that no mass firings or shutdown of employee access to CFPB computer systems would be allowed until further notice. “I’m willing to resolve it quickly, but I’m not going to let this RIF go forward until I have,” she said, referring to the proposed “reduction in force” strategy.
The administration’s plan would see around 1,500 of the bureau’s employees dismissed, reducing its staff to just 200. A formal hearing has been scheduled for April 28, when key officials involved in the RIF process will be called to testify.
The CFPB, established to protect consumers from financial abuse, has been a frequent target of criticism from conservatives and businesses.
Republican Trump, during his second tenure, sought to reshape the federal government, calling it fraud, waste and abuse. Tesla owner and Trump’s ally Elon Musk has often made the bureau a top target of his Department of Government Efficiency.
The lawsuit challenging the bureau’s shutdown is still pending, but for now, the agency remains intact — and so do the jobs of its workers.
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