Politics
Federal Judge Blocks Trump’s Plan to Dismantle Consumer Financial Protection Bureau

WASHINGTON (AP) — A federal judge issued a preliminary injunction Friday to prevent the Trump administration from dismantling the Consumer Financial Protection Bureau (CFPB), ensuring the vital agency remains operational amid ongoing legal challenges.
U.S. District Judge Amy Berman Jackson‘s ruling comes as Trump’s administration sought to terminate the agency, an action that could have extensively impacted consumer protections following a tumultuous period of upheaval. The judge emphasized that the court “can and must act” to save the CFPB from likely dissolution, pointing out that the agency was transitioning into a “wind-down mode” after previous leadership changes.
During her court hearing, Jackson highlighted the chaos ensuing at the CFPB after the administration ordered employees to cease operations last month. Adam Martinez, the bureau’s chief operating officer, testified that the agency had already commenced terminating contracts worth $100 million and preparing for mass layoffs, which included a reduction of at least 70 employees.
“Without this court’s action, the CFPB will be completely shuttered within thirty days, prior to any resolution in this lawsuit,” Jackson noted in her 112-page decision. The judge’s order also reinstates the agency’s contracts and ensures it maintains operational capacity.
The CFPB, created after the 2008 financial crisis, plays a critical role in safeguarding consumers from financial fraud and deceptive practices. It manages consumer complaints and evaluates banking institutions to protect borrowers, particularly students.
“The agency is essential for ensuring that consumers are treated fairly in the financial marketplace,” said consumer rights advocate and CFPB supporter Sarah Jones. “Without the CFPB, those protections would be severely weakened, putting countless individuals at risk.”
As the litigation continues, the agency is required to maintain its consumer complaint hotline and provide a workspace for its employees or enable remote work flexibility.