Federal judge blocks Trump administrator from CFPB layoffs

The Associated Press reported that U.S. District Judge Amy Berman Jackson ruled and expressed concern that administration officials did not follow her previous order to maintain the CFPB’s existence until she ruled on a lawsuit to preserve it.

On Friday, Jackson announced she would block officials from carrying out mass layoffs or disconnecting employees’ access to bureau systems. She also set a hearing for April 28 from officials involved in the reduction-in-force procedures.

“I’m willing to resolve it quickly, but I’m not going to let this RIF go forward until I have,” she said, according to The Associated Press.

Over a thousand employees were expected to be laid off

The Consumer Financial Protection Bureau was established in 2010 to protect consumers after the 2008 financial crisis, and it has become the latest federal agency targeted in sweeping government cuts by the current administration.

Politico reported that more than 1,500 CFPB staffers were expected to be laid off starting on Thursday, according to a source who anonymously spoke to Politico about the most recent developments at the watchdog agency.

Acting CFPB Director Russ Vought said the cuts are “necessary to restructure the Bureau’s operations to better reflect the agency’s priorities and mission,” he said in a letter obtained by Politico to affected employees.

An employee who was laid off spoke anonymously to the outlet, saying the notices were still being sent to staffers as of late Thursday afternoon.

“People are dropping like flies,” the employee said, per Politico.

The CFPB has become a key target in Trump’s effort to reduce the size of the federal government. Republicans, Musk and businesses have long criticized the CFPB for what they call its aggressive oversight of big banks, lenders and financial technology firms.

Blavity reported that the administration and Elon Musk’s Department of Government Efficiency have made deep cuts to several government agencies.