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Samyarup Chowdhury
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A split federal appeals court ruled that President Donald Trump may move forward with mass firings at the CFPB. By: Al Drago β Pool via CNP / MEGA
A split federal appeals court ruled that President Donald Trump may move forward with mass firings at the Consumer Financial Protection Bureau (CFPB), concluding that a lower court lacked the authority to block the move. The ruling, however, was put on hold to allow employees and advocacy groups time to seek further review, Knewz.com has learned.
The dispute
The Trump administration has sought to reduce the agencyβs role, framing it as an obstacle to deregulation. BY: MEGA
The CFPB was created after the 2007β2008 financial crisis to regulate financial markets and shield consumers from predatory practices. Since its inception, the bureau has delivered more than $21 billion in debt relief and compensation, according to agency records. In February, Office of Management and Budget Director Russell Vought ordered the CFPB to halt rule-making, investigations and supervisory activity, according to an email obtained by the Associated Press, as part of the Trump administrationβs efforts to reduce the agencyβs role, framing it as an obstacle to deregulation. While the president cannot formally abolish the CFPB without an act of Congress, mass firings could significantly weaken its operations.
The courtβs decision regarding the matter
The ruling was issued by a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit. BY: Unsplash
The ruling was issued by a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit. Judges Gregory Katsas and Neomi Rao, both Trump appointees, formed the majority. Judge Cornelia Pillard, appointed by former President Barack Obama, dissented. βWe hold that the district court lacked jurisdiction to consider the claims predicated on loss of employment,β the majority opinion stated. In dissent, Pillard wrote, βIt is emphatically not within the discretion of the president or his appointees to decide that the country would benefit most if there were no Bureau at all.β Earlier this year, U.S. District Judge Amy Berman Jackson issued an order protecting employees from termination except in cases of misconduct or poor performance, while also blocking efforts to defund the agency.
Immediate enforcement of the ruling delayed
The appeals court delayed immediate enforcement of its decision. BY: MEGA
The appeals court delayed immediate enforcement of its decision, giving attorneys for CFPB staff and consumer groups the option to request a rehearing before the full D.C. Circuit. If the court agrees to rehear the case, the panelβs ruling could be revisited. In the meantime, the CFPB continues its work, but its future workforce and regulatory authority remain in question as litigation proceeds.
Bondi touts the ruling as a victory for Trump
Attorney General Pam Bondi touted the ruling as a victory for Trump. (MEGA)
Attorney General Pam Bondi, posting on X, said, βAnother victory for President Trump! In a 2-1 ruling, the DC Circuit sided with my [Justice Department] attorneys in our effort to dismantle the CFPB and rein in crippling Obama-era regulations.β On the other hand, consumer advocates expressed concern that the decision could undermine protections for borrowers, noting that Congress established the agency and plays a central role in regulating lending practices.
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