Appeals court extends hold on Trump admin’s plan to cut government agency by 90%

The U.S. Court of Appeals in Washington, D.C., made a significant ruling on Monday to uphold a lower court’s decision that blocked the Trump administration’s planned mass layoffs at the Consumer Financial Protections Bureau (CFPB). The court’s ruling, with a 2-1 majority, reinstated a previous ruling by federal Judge Amy Berman Jackson, an appointee of the Obama administration. This ruling temporarily halted the Trump administration’s proposed reductions in force (RIF) at the CFPB, which would have resulted in a drastic reduction of the agency’s staff by 90 percent.

Prior to Judge Jackson’s ruling, the CFPB was on track to implement a reduction in force that would have led to the termination of around 1,400 employees, leaving only a few hundred remaining. However, following a legal challenge against the reduction filed in the D.C. district court in early February, Judge Jackson issued a preliminary injunction in late March, citing that the plaintiffs were likely to succeed on the merits of their case.

The court’s order instructed the government to rehire all terminated employees, reinstate all terminated contracts, and refrain from any further reductions-in-force or attempts to halt work through any means. Judge Jackson later issued another injunction earlier this month after an appeals court narrowed her initial ruling. She noted that despite the appeals court’s order, CFPB employees were informed that the agency planned to proceed with the reduction in force, contrary to the court’s directive.

Judge Jackson barred the administration from moving forward with any layoffs or cutting off employees’ access to computers at the bureau until she had the opportunity to hear from the officials involved in the decision-making process. She expressed her willingness to resolve the matter promptly but expressed deep concerns regarding the extent of the proposed actions.

The Justice Department’s lawyers sought to appeal Judge Jackson’s order, arguing that the injunction exceeded the court’s authority by interfering with the executive branch’s decision-making process. Judge Jackson is scheduled to hear testimony from officials responsible for implementing the RIF procedures on Tuesday.

In conclusion, the U.S. Court of Appeals’ ruling serves as a significant development in the ongoing legal battle over the planned layoffs at the CFPB. The decision to uphold the lower court’s order highlights the importance of judicial oversight in safeguarding the rights of employees and ensuring proper adherence to legal procedures.