Trump Administration Halts CFPB Layoffs Temporarily After Union Lawsuit

The Trump administration has temporarily paused further layoffs at the U.S. Consumer Financial Protection Bureau (CFPB) following a court order issued Friday. This decision offers a brief reprieve to the agency's employees amid widespread concerns of mass terminations.

Over the past week, the administration dismissed numerous staff members from the 1,700-strong consumer watchdog, which has long been criticized by conservatives. Billionaire Elon Musk has pledged to dismantle the CFPB as part of broader federal workforce cuts.

Union representatives expressed fears in court that the government intended to eliminate the CFPB entirely, including terminating remaining staff, canceling its lease, and returning its funds to the Federal Reserve.

The White House Office of Management and Budget, led by CFPB acting director Russell Vought, has not commented on the matter.

The lawsuit, filed Thursday by a union and organizations like the NAACP, led to a consent order signed by U.S. District Judge Amy Berman Jackson. The Justice Department agreed not to destroy or remove sensitive consumer and commercial data collected over 12 years or transfer any funds back to the Federal Reserve until a preliminary injunction is decided.

Earlier on Friday, CFPB staff were directed to take administrative leave, continuing the work stoppage initiated by the Trump administration last week. This legal development temporarily shields the CFPB from further disruption, pending the court’s decision.