Federal Judge Halts CFPB Layoffs, Protecting Jobs: NPR Report

Judge Blocks Layoffs at CFPB Amid Ongoing Restructuring

In a significant ruling for employees of the Consumer Financial Protection Bureau (CFPB), a federal judge in Washington, D.C., has prohibited the agency from further terminations. This decision comes as a relief to staff who have been facing potential mass layoffs, particularly following the dismissal of over 100 workers earlier this week.

On February 10, 2025, Judge Amy Berman Jackson ordered the CFPB to cease any additional employee layoffs and ruled that the agency is barred from deleting or disposing of crucial data. The ruling also states that transferring funds from the CFPB’s reserve can only occur under necessary operational conditions.

The recent wave of layoffs was initiated under the leadership of acting Director Russell Vought, who had already terminated many staff members with tenure extending up to four years. In anticipation of more layoffs, agency personnel braced for further job losses, with rumors suggesting that additional dismissals could be imminent.

This restructuring is part of broader efforts by the Trump administration, in collaboration with Elon Musk’s Department of Government Efficiency team, aimed at substantially reducing the federal workforce. In conjunction with the CFPB’s layoffs, approximately 1,300 employees, or 10% of the workforce, faced termination at the Centers for Disease Control and Prevention (CDC).

Critics have raised concerns about the implications of these cuts. The National Treasury Employees Union, which represents CFPB staff, has filed a lawsuit to halt the administration’s actions, arguing that the attempted data deletion and access to sensitive information violate the Privacy Act.

At a rally outside the CFPB office, Rep. Maxine Waters and other Congressional leaders have vocally supported the agency and its mission, highlighting the CFPB’s crucial role established after the 2008 financial crisis through the Dodd-Frank Act. The agency is mandated to protect consumers and regulate financial products and services, which some Wall Street and Silicon Valley executives view as overly stringent.

Since its inception, the CFPB has returned over $21 billion to consumers, effectively advocating for fair practices in the financial sector. As the agency navigates these challenges, attention remains focused on its future leadership and direction, particularly with the recent nomination of Jonathan McKernan to replace the acting director, Vought.

Upcoming Hearing

A hearing regarding the legal challenges against the Trump administration’s actions is scheduled for March 3. As the situation unfolds, employees and advocates alike continue to watch closely, considering the potential impacts on consumer protections and agency operations moving forward.