A U.S. federal appeals court has reinstated a temporary ban on mass firings at the Consumer Financial Protection Bureau (CFPB), halting President Donald Trump’s initiative to reduce the agency’s workforce by 90%. The three-judge panel’s split decision temporarily protects approximately 1,500 CFPB employees while legal proceedings continue.
The Trump administration, aiming to downsize the CFPB to a staff of about 200, argues that such decisions fall within executive authority. The CFPB was established in 2010 to safeguard consumers from financial abuses. Critics, including Trump and advisor Elon Musk, have accused the agency of politicized enforcement.
In response to the administration’s plan to terminate nearly 1,500 employees, a lower court had previously issued a temporary restraining order. The appeals court modified that order, permitting the CFPB to conduct reductions in force after a “particularized assessment” demonstrating that any dismissed workers were not essential for the agency’s statutory functions.
The court’s decision represents a legal setback for the Trump administration’s efforts to restructure the CFPB. The agency’s leadership maintains that a significantly reduced staff would impede its ability to supervise financial institutions, enforce consumer laws, and educate the public. The White House and the CFPB have not issued immediate comments on the ruling.
This case is part of a broader pattern of legal challenges to the administration’s mass firing initiatives across federal agencies. Earlier this year, the administration reinstated approximately 24,500 federal workers following court orders deeming the mass terminations likely illegal. The outcome of this case could have significant implications for the future of the CFPB and the broader federal workforce.
