WASHINGTON (Reuters) – A court ruling on Friday determined that President Donald Trump’s administration has the authority to lay off workers at the U.S. Consumer Financial Protection Bureau (CFPB), but cannot abolish the agency altogether. The CFPB was established after the global financial crisis to oversee and regulate the consumer finance industry, but has faced criticism from Republicans for its perceived lack of accountability and alleged overreach.
President Trump previously stated his belief that the agency should be eliminated. In response, a federal judge in March intervened to block the administration, as well as Elon Musk’s Department of Government Efficiency, from pursuing actions to dismantle the CFPB, such as mass layoffs, contract terminations, office closures, and a complete cessation of agency operations.
The White House attempted to have the preliminary injunction revoked, but the appeals court denied this request. However, the court did permit layoffs to proceed. Furthermore, the appeals court upheld the preliminary injunction preventing the administration from implementing work stoppages through stop-work orders, administrative leave, or any other means.
(Reporting by Lucia Mutikani; editing by Diane Craft)
