Judge halts mass layoffs at consumer protection bureau amid legal concerns
- A federal judge has ordered a halt to the mass firings at the CFPB as she examines potential legal violations.
- Nearly 1,500 employees were set to be cut from the agency, drastically shrinking its operational capacity.
- The judge's intervention signals ongoing legal challenges against the Trump administration's efforts to dismantle the CFPB and its mission.
In Washington, D.C., the Trump administration's plan to lay off nearly 1,500 employees from the Consumer Financial Protection Bureau (CFPB) faced significant legal pushback as of April 18, 2025. U.S. District Judge Amy Berman Jackson intervened, expressing deep concern over the hurried nature of the Reduction in Force (RIF), which sought to cut the workforce from approximately 1,700 to around 200 employees. This agency, established post-2008 financial crisis, was designed to safeguard against financial fraud and abuse. The layoffs were perceived as part of a broader agenda to diminish the agency's power, which has been criticized by conservatives and aligned with Elon Musk's Department of Government Efficiency. The judge's decision comes after the National Treasury Employees Union filed for intervention, claiming violations of a court order that mandated assessments of individual employee roles. As the legal issues unfolded, plans for the CFPB's restructuring were revealed, prioritizing consumer fraud vs. company penalties, drawing political ire, particularly from Senator Elizabeth Warren, one of the agency's architects. A preliminary hearing has been set for April 28, where government officials must justify their actions and provide communication records in connection to the layoffs. The outcome of this legal battle may significantly affect the future of the CFPB and its ability to function effectively in consumer protection.