A federal judge issued a temporary injunction preventing the Trump administration from dismantling the Consumer Financial Protection Bureau (CFPB) and instructed that all employees who were terminated must be reinstated. Judge Amy Berman Jackson of the U.S. District Court in Washington, D.C., delivered the ruling, prohibiting further layoffs within the CFPB and the deletion of any agency data or records to safeguard the bureau.
In her written order, Judge Berman Jackson expressed concerns that the agency could be irreparably dismantled before a formal decision could be made, noting the difficulty of rebuilding afterward. This order comes amid a lawsuit initiated by the National Treasury Employees Union, representing CFPB employees, following actions by the Trump administration that effectively closed the bureau the previous month.
The administration, alongside Elon Musk’s Department of Government Efficiency, had shut down the CFPB headquarters, directed employees to halt most activities, and terminated more than 100 probationary and term staff members. A final ruling on the case has not yet been issued by Judge Berman Jackson.
Neither the Trump administration nor the CFPB provided immediate comments regarding the ruling. Attorney Deepak Gupta, representing the CFPB’s union, regarded the temporary injunction as a significant victory, preventing the dismantling of the bureau, a key agency meant to protect consumers’ financial security.
During the hearings, Judge Berman Jackson displayed skepticism towards the government’s arguments, questioning the Trump administration’s legal representatives. Despite some work at the CFPB gradually resuming during the hearings, Judge Berman Jackson described such activities as possibly being a “charade” for the benefit of the court.
The Trump administration has openly criticized the CFPB, which has faced opposition from various Republicans and industry executives who argue the bureau enforces overly strict regulations. Established under the Dodd-Frank Act following the 2008 financial crisis, the CFPB was tasked by Congress with executing numerous statutory obligations, consolidating various statutes that existed before the Dodd-Frank legislation.