By Douglas Gillison (Reuters) – President Donald Trump’s administration has agreed temporarily not to terminate any additional staff members at the U.S. Consumer Financial Protection Bureau, as per a court order issued on Friday. This decision provides employees with a last-minute reprieve amidst concerns of imminent mass layoffs. The move follows a week during which the administration dismissed numerous workers, potentially amounting to hundreds out of the 1,700 personnel at the consumer watchdog agency, long criticized by conservatives. Billionaire Elon Musk has made public his intention to dismantle the CFPB as part of a broader initiative to overhaul the federal workforce.
During proceedings in court on Friday afternoon, union representatives expressed apprehension that the government was preparing to dismantle the CFPB, possibly as early as that same day. Such actions could involve terminating all remaining staff, terminating the agency’s lease, and reallocating its funds to the Federal Reserve. The White House Office of Management and Budget, headed by the CFPB’s acting director, Russell Vought, was unavailable for immediate comment in response to inquiries.
The case was initiated on Thursday by an employee union and other entities, including the National Association for the Advancement of Colored People. The agreement reached on Friday will remain effective until the court rules on their plea for a preliminary injunction to halt the Trump administration’s outlined strategies.
Through a mutual agreement and approved by U.S. District Judge Amy Berman Jackson, the Justice Department and the government have also committed not to tamper with or erase the vast amounts of sensitive consumer and commercial data accumulated by the agency over the past 12 years. Furthermore, there will be no transfer of any available funds back to the U.S. Federal Reserve.
Earlier on Friday, CFPB officials directed all staff members to take administrative leave, effectively extending the work cessation initiated by the Trump administration the previous week. (Reporting by Douglas Gillison; Editing by David Gregorio)
