Trump administration blocked from firing CFPB employees for now

Federal judge halts the dismantling of the bureau, examines lawsuit brought by employee union

Trump administration blocked from firing CFPB employees for now

Federal judge halts the dismantling of the bureau, examines lawsuit brought by employee union
CFPB court case

A federal judge on Friday temporarily blocked the Consumer Financial Protection Bureau (CFPB) from continuing mass employee firings, according to news reports.

The move blocks President Donald Trump’s moves to dismantle the agency. U.S. District Judge Amy Berman Jackson has halted the bureau from terminating additional employees after the Trump administration fired more than 100 agency workers last week, including a division that was examining the financial products offered by major technology companies.

The order allows employees to be terminated only for performance-related reasons or misconduct. It also blocks the CFPB from starting the termination process for groups of workers at the bureau. The judge prohibited Trump administrators from destroying or removing any of the CFPB data, including consumer complaints and sensitive information collected by the bureau concerning banks and other financial firms. Current CFPB Director Russ Vought is also blocked from defunding the agency.

Judge Jackson set another hearing for Mar. 3 to discuss these issues and to fully consider a lawsuit brought by the National Treasury Employees Union. The union and several consumer groups had asked the judge for an emergency order on Friday because the groups maintained that Vought was planning a mass firing of employees later that day.  

Vought had ordered CFPB employees to halt all work last week and had closed the agency’s headquarters. CFPB employees told the court that they believed the Trump administration had developed plans to destroy the agency’s collected data.

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