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Court Order Temporarily Halts U.S. Consumer Financial Protection Bureau Layoffs

By  |  February 16, 2025

In a significant development for workers at the U.S. Consumer Financial Protection Bureau (CFPB), the Trump administration has agreed, at least temporarily, to halt further staff dismissals following a court order issued on Friday. The ruling provides the agency’s employees with an 11th-hour reprieve, averting the feared mass layoffs that had loomed large.

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    The decision came after a week of significant unrest, during which numerous CFPB staff members, estimated to be in the hundreds, were dismissed by the administration. According to Reuters., the CFPB, an agency long criticized by conservatives, employs about 1,700 workers. It has faced significant opposition from figures such as billionaire Elon Musk, who has called for the dismantling of the agency as part of a broader plan to overhaul the federal workforce.

    Union representatives, speaking in court on Friday, expressed concern that the government was planning to eliminate the CFPB entirely. The union suggested that such a move could begin imminently, potentially leading to the termination of all remaining staff, the cancellation of the agency’s lease, and the return of its funds to the Federal Reserve. However, the court order has temporarily suspended these drastic measures.

    Related: President Trump Fires CFPB Director Rohit Chopra

    The case was filed earlier in the week by a coalition of organizations, including an employee union and the National Association for the Advancement of Colored People (NAACP). The court’s ruling will remain in effect until a decision is made on whether to grant a preliminary injunction to halt the administration’s plans, according to Reuters.

    In a consent order negotiated between both sides and signed by U.S. District Judge Amy Berman Jackson, the Justice Department has also committed to safeguarding sensitive data collected by the CFPB over the past 12 years. Under the agreement, the government is prohibited from destroying or removing any of this data or transferring the agency’s available funds back to the Federal Reserve.

    Earlier on Friday, in what appeared to be a continuation of the shutdown initiated by the administration the previous week, CFPB officials directed all staff members to take administrative leave. This effectively extended the work stoppage at the agency, per Reuters..

    As of now, the White House Office of Management and Budget, which is headed by Russell Vought, the acting director of the CFPB, has not commented on the developments.

    Source: Reuters.