- Federal judge blocks immediate termination of 1,500 CFPB employees
- Ruled administration may have violated court-ordered employee assessments
- Agency planned 87% staff reduction to 206 workers
- Hearing scheduled to examine potential contempt charges
A federal judge delivered a scathing rebuke to Trump administration officials attempting to eliminate nearly 1,500 positions at the Consumer Financial Protection Bureau. District Judge Amy Berman Jackson found deeply concerningevidence that leadership rushed workforce reductions despite existing court orders requiring individualized employee evaluations. The ruling preserves jobs for 88% of the agency's workforce pending further review.
Legal experts note this case establishes critical precedents for federal workforce protections. This isn't just about numbers - it's about due process for civil servants,said Georgetown Law professor Linda Greene, who analyzed similar workforce reductions at the EPA in 2024. Her research shows agencies maintaining at least 40% of baseline staff perform essential functions 73% more effectively than those with deeper cuts.
The court ordered preservation of all communications between CFPB leadership and external consultants including Gavin Kliger, a controversial figure tied to recent workforce restructuring at Twitter/X. This follows patterns seen in Department of Energy layoffs last year, where third-party consultants allegedly bypassed standard federal HR protocols.
Consumer advocacy groups warn the proposed staffing levels would cripple critical services. With only 4 mortgage oversight specialists remaining under the restructuring plan (down from 142), analysts predict 58% longer resolution times for housing complaints. The CFPB's student loan division would be reduced to a single staffer managing 43 million borrowers.
Judge Jackson mandated testimony from OMB Director Russell Vought about the particularized assessmentssupposedly conducted. Internal documents reveal 92% of termination notices used identical boilerplate language, contradicting claims of individualized reviews. The administration maintains its 206-person blueprint follows efficiency modelssuccessfully implemented at the Small Business Administration.
This legal battle occurs as the CFPB marks $20 billion recovered for consumers since 2011. Housing advocates cite its 2024 reversal of 12,000 wrongful foreclosures as evidence of necessary staffing levels. You can't protect Main Street with Wall Street math,stated National Consumer Law Center director Rebecca Borné.