Federal judge Amy Berman Jackson orders halt to Trump admin’s CFPB terminations

A federal judge in Washington, D.C. has put a temporary halt to the Trump administration’s planned mass layoffs at the Consumer Financial Protections Bureau (CFPB). The layoffs would have resulted in a workforce reduction of about 90%, leaving only a few hundred employees in place. U.S. District Judge Amy Berman Jackson’s order came after plaintiffs in the case, including the CFPB Employee Association and other labor entities, accused the government of violating her earlier injunction.

The planned layoffs were set to take place on Friday evening, prompting the plaintiffs to seek legal action to stop them. Judge Jackson noted that the agency was planning to carry out a reduction in force (RIF) of approximately 1,400 employees, in direct violation of her earlier injunction. She expressed deep concern over the scope of the action and stated that she would not allow the layoffs to proceed until she had a chance to review the situation.

The Justice Department had attempted to appeal Judge Jackson’s order, arguing that it infringed on the executive branch’s authority. However, the judge blocked the administration from moving forward with any layoffs or cutting off employees’ access to computers at the bureau until she could hear from the officials involved in the RIF procedures. She scheduled a hearing for April 28 to gather testimony from these officials.

The plaintiffs initially filed their legal challenge in early February, seeking a temporary restraining order to prevent the downsizing of the bureau. In late March, the court issued a preliminary injunction, directing the government to rehire all terminated employees and contracts, and to refrain from engaging in further reductions-in-force. The Trump administration appealed the order, leading to the current legal battle.

The Court of Appeals for the D.C. Circuit partially stayed Judge Jackson’s order, allowing the government to proceed with terminations and reductions in force that were deemed necessary for the performance of the bureau’s statutory duties. The appeals court also stayed the provision requiring the rehiring of terminated employees.

This ongoing legal battle underscores the challenges facing the CFPB and its employees in the current political climate. The fate of the planned mass layoffs remains uncertain as the case continues to unfold in the courts.