Judge Blocks Trump’s Mass Layoffs at Consumer Protection Bureau/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ A federal judge has halted the Trump administration’s plan to fire over 1,500 Consumer Financial Protection Bureau employees, citing concerns over noncompliance with court orders. The ruling delays a massive workforce reduction at the bureau until a full hearing later this month.
Judge Pauses Trump Administration’s CFPB Layoff Plan – Quick Look
- Federal judge halts Trump’s plan to fire 1,500 CFPB workers.
- Judge Amy Berman Jackson warns of noncompliance with earlier order.
- Mass layoffs delayed until hearing scheduled for April 28.
- Only 200 staff would remain if layoffs had proceeded.
- Trump’s effort to dismantle the bureau faces growing legal resistance.
Federal Judge Temporarily Blocks Mass Firings at Consumer Watchdog Bureau
Deep Looks
WASHINGTON (April 18, 2025) — A federal judge on Friday halted the Trump administration’s plans to carry out mass layoffs at the Consumer Financial Protection Bureau (CFPB), issuing a strong rebuke to government officials for moving forward despite previous court orders.
U.S. District Judge Amy Berman Jackson, who previously blocked President Donald Trump from dismantling the CFPB outright, said she was “deeply concerned” that administration officials were still preparing to fire nearly 1,500 employees—a move that would effectively gut the bureau.
At a court hearing in Washington, Jackson made clear that she would not allow the Trump administration’s reduction in force (RIF) plan to proceed until a full legal review is complete.
“I’m willing to resolve it quickly, but I’m not going to let this RIF go forward until I have,” Jackson told the courtroom.
Legal Battle Over CFPB’s Future
The ruling temporarily preserves the staffing and operational capacity of the CFPB, a watchdog agency created in the wake of the 2008 financial crisis to regulate financial institutions and protect consumers.
Trump and his advisers, particularly Elon Musk, head of the administration’s Department of Government Efficiency, have made the CFPB a key target in their broader campaign to reduce federal bureaucracy. They argue that the agency imposes burdensome regulations and operates with little accountability.
But consumer advocates and Democratic lawmakers say the CFPB plays a vital role in preventing financial abuse and fraud, especially in underserved communities. The lawsuit currently before Judge Jackson was filed by a coalition of consumer groups and several current CFPB employees who say the planned firings are politically motivated and unlawful.
Hearing Set for April 28
Judge Jackson scheduled a follow-up hearing for April 28, where she will hear testimony from government officials involved in developing the RIF procedures. Until then, the bureau is barred from terminating employees or restricting their access to agency systems.
The administration’s proposal would leave only around 200 employees at the agency, a dramatic reduction from the nearly 1,700 workers currently on staff.
“This is about ensuring due process and upholding the integrity of the judiciary’s role,” Jackson said in her closing remarks.
Broader Government Shakeup
The pause on the CFPB layoffs comes amid a broader Trump administration effort to reshape and reduce the size of the federal government, frequently by defunding or downsizing agencies viewed as hostile to the administration’s priorities.
The CFPB, in particular, has been a lightning rod for conservative criticism since its founding. Businesses have long chafed under its enforcement actions, while some Republicans have called for its complete elimination.
“It’s supposed to be protecting consumers, but what it really does is regulate them into submission,” said one senior Trump administration official not authorized to speak on the record.
“This is not just about shrinking government — it’s about silencing oversight,” said Nora Jenkins, policy director at the Consumer Rights Coalition. “What’s at stake here is the future of consumer protections in this country.”
You must Register or Login to post a comment.