A federal judge has ordered the Trump administration to pause most terminations of Consumer Financial Protection Bureau staff and not to defund the bureau by transferring its reserves to another part of government.
Last week, CFPB Acting Director Russ Vought ordered CFPB staff to pause all supervisory and enforcement activities and instructed the Federal Reserve not to appropriate the next round of funding for the bureau. In addition, President Trump and Elon Musk—who is leading the administration’s efforts to cut the size of government—have both said they want to eliminate the agency. The National Treasury Employees Union sued the Trump administration over its efforts to “dismantle” the bureau, calling its actions unlawful.
U.S. District Court Judge Amy Berman Jackson on Friday issued a preliminary injunction against the Trump administration in the case. Jackson ordered no further firings of CFPB staff except for cause related to an employee’s performance or conduct. She also ordered the administration not to issue any notice of reduction-in-force to CFPB employees, not to transfer the CFPB’s reserves back to the Federal Reserve or another part of government, and not to destroy bureau records unless following the legal procedures for the proper disposal of documents.
The court plans to hold a hearing in early March on the injunction.
