2 weeks Ago
A federal court has blocked the sweeping termination of staff at the top US consumer protection agency, a day after the Trump administration moved to axe about 1,500 of the agency's 1,700 workforce, while officials investigate whether the action violated existing judicial orders. The ruling from the judge Amy Berman Jackson put a legal hurdle in front of mass layoffs at the Consumer Financial Protection Bureau (CFPB) announced on Thursday, which came after a federal appeals court modified – but did not eliminate – an injunction limiting the agency's ability to terminate employees. The administration did not immediately respond to a request for comment.
It is unclear whether it will abide by the latest ruling. A handful of divisions have been completely eliminated by the administration, according to court filings, including the office of servicemember affairs, the office of older Americans, and the office of fair lending. Only eight employees remain in the office of consumer response, while the entire team responsible for the CFPB's data storage systems has been terminated.
The layoffs, via hundreds of reduction in force (RIF) letters sent on Thursday, are just the latest blow in an ongoing battle over the agency's bleak future. In February, Jackson had ordered a halt to terminations at the CFPB and barred the agency from deleting data or transferring reserve funds except for operational..
. Joseph Gedeon , Michael Sainato.
