A federal appeals court has blocked the Trump administration's immediate plans to reduce the U.S. Consumer Financial Protection Bureau's workforce by approximately two-thirds. The court returned the case to a lower court but rejected requests to resume staff cuts or impose a deadline.
The ruling prevents the immediate reduction of staff at the consumer watchdog agency, preserving its operational capacity and signaling continued legal challenges to the administration's efforts to dismantle or weaken regulatory bodies.
A federal appeals court on Friday blocked the Trump administration's immediate plans to slash the workforce at the U.S. Consumer Financial Protection Bureau by approximately two-thirds, marking a setback for efforts to shrink the consumer watchdog. The U.S. Court of Appeals for the District of Columbia Circuit issued the order in response to a revised plan submitted by the Justice Department following previous legal defeats. The court granted the administration's motion to return the case to the district court but rejected requests to resume staff cuts or impose a deadline on the lower court judge. The CFPB, established after the 2008 financial crisis to oversee consumer financial products, has been a target for abolition by Trump and other officials who argue it burdens free enterprise. Critics of the administration's actions contend that weakening the agency benefits industry at the expense of consumers. The administration has pursued other measures to weaken the agency, including reassigning staff to its Washington headquarters and nominating a vocal critic to lead it.