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A federal judge in Washington, D.C., has temporarily stopped the planned mass firings of nearly 1,500 employees at the Consumer Financial Protection Bureau (CFPB). District Judge Amy Berman Jackson issued the order on Friday (April 18), expressing concern over the Trump administration's attempt to implement a Reduction In Force (RIF) at the agency.
The firings were set to reduce the CFPB's staff from 1,680 to just 206 employees. The judge's decision comes after the administration sent layoff notices to the employees, informing them that their access to the bureau's systems would be cut off by Friday evening. The move was part of President Donald Trump's broader plan to downsize the federal government, which includes eliminating the CFPB, an agency established in 2011 to protect consumers from financial fraud.
Judge Jackson had previously issued a preliminary injunction requiring that any terminations be based on "particularized assessments" of individual employees' performance. However, she noted that the recent actions by CFPB leadership, including Office of Management and Budget Director Russell Vought and general counsel Mark Paoletta, may have violated this injunction. The judge has scheduled a hearing for April 28, where top officials will testify under oath about their actions.
The Trump administration argues that the CFPB can fulfill its duties with a smaller staff, but union groups and consumer protection organizations have filed a lawsuit to preserve the bureau. They claim that such drastic cuts would prevent the agency from carrying out its congressionally mandated duties. The judge's order halts the layoffs until she rules on the merits of the lawsuit.