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U.S. District Judge Amy Berman Jackson issued a preliminary injunction Friday that blocks the Trump administration from dismantling the Consumer Protection Financial Bureau. “The court cannot look away or the CFPB will be dissolved and dismantled completely in approximately thirty days, well before this lawsuit has come to its conclusion,” she wrote in a 112-page decision.Her order keeps the CFPB in existence until the case has been resolved on the merits. It also reinstates the agency’s contracts, workforce, data and operational capacity.Jackson ruled that, without a court order, President Trump’s administration would move quickly to shut down the agency that Congress created in the wake of the 2008 financial crisis.”If the defendants are not enjoined, they will eliminate the agency before the Court has the opportunity to decide whether the law permits them to do it, and as the defendants’ own witness warned, the harm will be irreparable,” Berman Jackson said in her order.
During a March 10 hearing, Jackson heard testimony about the chaos that erupted inside the agency after government employees were ordered to stop working last month. The bureau’s chief operating officer, Adam Martinez, said the agency was in “wind-down mode” after Trump fired its previous director, Rohit Chopra, on Feb. 1.Trump installed a temporary replacement who ordered the immediate suspension of all agency operations, cancelled $100 million in contracts and fired 70 employees.Martinez said the agency’s current leaders have adopted a more methodical approach than they initially did last month, when representatives of Elon Musk’s Department of Government Efficiency arrived at its Washington headquarters.CFPB is responsible for protecting consumers from financial fraud and deceptive practices. It processes consumer complaints and examines banks to protect student loan borrowers.
The National Treasury Employees Union, which represents more than 1,000 workers at the bureau, sued on Feb. 9 to block mass firings. Plaintiffs’ attorneys argue that the administration doesn’t have the constitutional authority to eliminate an agency that Congress created by statute.”The defendants’ unlawful action will have immediate consequences for the Americans that the CFPB was designed by Congress to protect,” the lawyers wrote.Government lawyers have said the plaintiffs are seeking to impermissibly place the CFPB in a “judicially managed receivership,” with the court overseeing its day-to-day operations.Jackson started her 112-page ruling by quoting Mr. Trump and his allies’ own words about the bureau. Trump’s billionaire adviser, Elon Musk, posted “CFPB RIP” on X, his social media platform, and added an emoji of a tombstone. White House budget director Russell Vought said it has been “a woke and weaponized agency against disfavored industries and individuals for a long time.” Mr. Trump called it “a very important thing to get rid of.”Among the plaintiffs was 83-year-old Eva Steege, a Lutheran pastor in hospice care who had been working with CFPB to resolve her student loan debt before her death. The agency found she qualified for loan forgiveness and a $15,000 refund of overpayments, but the stop-work order went into effect before she could have a follow-up meeting and the official she was working with was fired.”Steege’s fear of leaving her surviving family members saddled with her student loan debt came to pass on March 15, when she died,” the judge wrote.
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