Key facts
- A federal appeals court blocked the Trump administration's plan to cut the Consumer Financial Protection Bureau (CFPB) workforce by approximately two-thirds.
- The U.S. Court of Appeals for the District of Columbia Circuit denied the Justice Department's request to proceed with layoffs.
- The case has been returned to a federal district court for reassessment of a preliminary injunction.
- The CFPB was created after the 2008 financial crisis to oversee consumer financial products and services.
- Critics have argued the agency is politicized and a burden, while supporters say weakening it harms consumers.
A federal appeals court has halted the Trump administration's efforts to significantly reduce the staff at the U.S. Consumer Financial Protection Bureau (CFPB). The U.S. Court of Appeals for the District of Columbia Circuit issued an order blocking the immediate implementation of plans to cut the agency's workforce by approximately two-thirds.
The Justice Department had appealed a previous injunction that temporarily barred mass terminations. Following repeated legal setbacks, the department submitted a revised plan. The appeals court granted the administration's motion to send the case back to the district court for reassessment but denied requests to resume staff reductions or set a deadline for the lower court's decision.
The CFPB was established after the 2008 financial crisis to oversee consumer financial products. Critics, including Trump, have accused the agency of being politicized and a burden on businesses, while supporters argue that weakening it benefits industry at the expense of consumers. Despite legal challenges, the administration has pursued other measures to diminish the agency's influence, such as reassigning staff to its Washington headquarters and nominating a vocal critic to lead the CFPB.