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alt=”Demonstrators raise signs at a rally to protest the closing of the Consumer Financial Protection Bureau last month in Washington, D.C.” fetchpriority=”high”/>
Demonstrators raise signs at a rally to protest the closing of the Consumer Financial Protection Bureau last month in Washington, D.C.
Jemal Countess/Getty Images for MoveOn/Getty Images North America
In a significant legal development, a federal judge has halted the Trump administration’s attempt to close the Consumer Financial Protection Bureau (CFPB) and has mandated the reinstatement of all dismissed employees. This decision was rendered by Judge Amy Berman Jackson from the U.S. District Court in Washington, D.C.
The injunction also restricts any further dismissals within the agency or the deletion of its records, marking a comprehensive move to safeguard the bureau’s operations.
“There is a substantial risk that the defendants will complete the destruction of the agency completely in violation of law well before the Court can rule on the merits, and it will be impossible to rebuild,” Judge Berman Jackson stated in her order.
The lawsuit, initiated by the National Treasury Employees Union, challenges the Trump administration’s recent efforts to effectively shut down the CFPB. The Department of Government Efficiency, led by Elon Musk, had previously shut the bureau’s headquarters and dismissed over 100 employees.
Judge Berman Jackson has not yet issued a final decision on the case. Requests for comments from the Trump administration and the CFPB have so far gone unanswered.
Deepak Gupta, who represents the CFPB’s union, expressed approval of the temporary ruling, stating, “Today’s victory blocks the unprecedented plan to dismantle the CFPB—an agency that Congress created to protect Americans’ financial security. This ruling upholds the Constitution’s separation of powers and preserves the Bureau’s vital work.”
Berman Jackson’s Skepticism of Government Efforts
Judge Berman Jackson has been notably skeptical of the administration’s approach, posing critical questions during hearings. Despite some activities resuming at the CFPB, Berman Jackson characterized these efforts as “more likely a charade for the Court’s benefit.”
The Trump administration’s antagonism towards the CFPB is well-documented, with some Republicans and industry leaders criticizing the bureau’s regulatory stance. Established by Congress following the 2008 financial crisis, the CFPB’s mandate includes enforcing various statutes designed to protect consumer interests.
This article was originally written by www.npr.org
