WASHINGTON, DC - People gather for a protest outside the closed offices of the Consumer Financial Protection Bureau on February 12, 2025. As Trump advisor Elon Musk's platform, X, moves deeper into financial services, Musk is spearheading efforts to dismantle the CFPB.
Washington D.C. – A federal judge on Friday halted the Trump administration’s plans to lay off the vast majority of employees at the Consumer Financial Protection Bureau (CFPB), saying the move cannot proceed until further legal review is completed.
U.S. District Judge Amy Berman Jackson, who previously blocked President Donald Trump’s efforts to dismantle the agency, expressed sharp concern that administration officials were disregarding her earlier ruling that preserved the bureau’s operations pending litigation.
“I’m deeply concerned that my prior order is not being taken seriously,” Jackson said during a hearing. “I will not permit any mass terminations or the disabling of employee access to systems until I have ruled on the core legal issues.”
The judge scheduled a follow-up hearing for April 28, where key officials involved in planning the reduction in force (RIF) will be required to testify. Jackson signaled a willingness to move quickly but maintained that due process must be followed before any sweeping actions take place.
The Trump administration’s current plan would slash the CFPB workforce from about 1,700 to just 200 employees — a move critics say would effectively cripple the agency. The bureau, established in the wake of the 2008 financial crisis, has long been a target for conservatives and business interests who argue its regulatory actions are overreaching.
President Trump, who has made government downsizing a signature initiative of his administration, has said the federal bureaucracy is riddled with “fraud, waste, and abuse.” The CFPB has been one of the main focuses of Trump adviser Elon Musk’s Department of Government Efficiency, a new agency formed to streamline or eliminate what the administration deems unnecessary federal functions.
Supporters of the CFPB argue that the agency plays a vital role in protecting consumers from predatory lending, financial scams, and corporate abuse. Critics of the layoffs warn that gutting the bureau would leave everyday Americans vulnerable and eliminate oversight in key areas of the financial sector.
The lawsuit challenging the administration’s attempt to dismantle the CFPB was filed by a coalition of public interest groups, former bureau officials, and Democratic lawmakers.
For now, Judge Jackson’s ruling ensures the bureau remains operational and staffed at current levels until a final decision is made.
