Judge blocks Trump admin from firing CFPB employees

A federal judge on Friday blocked the Trump administration from firing employees at the Consumer Financial Protection Bureau (CFPB) amid a larger push to effectively dismantle the agency. 

The Trump administration is barred from firing CFPB employees without cause or issuing any reduction-in-force notice, as part of an agreement reached between the Department of Justice and the National Treasury Employees Union, which is suing alongside other groups over the changes to the agency.

They also cannot delete or remove CFPB data or transfer or return any of the agency’s funds, according to the order signed by U.S. District Judge Amy Berman Jackson. 

The union’s lawyer, Deepak Gupta, voiced concerns at a court hearing Friday that the Trump administration was poised to conduct mass firings and delete the agency’s data. 

A former CFPB official warned in a declaration submitted to the court earlier in the day that he had learned “leadership intends to fire massive numbers of Bureau staff today and into the weekend.” 

Eric Meyer, the former chief technologist and senior advisor to the director, also said he had received reports that “reliably indicate that databases holding the CFPB’s data will soon be deleted.” 

“I am preparing this declaration to ensure that the Court is aware of the imminent risk that twelve years’ of critical CFPB records, which belong to the public, will be irretrievably lost and cause serious and sweeping damage unless the Court takes action to preserve the status quo in the face of efforts to dismantle the CFPB,” he wrote. 

The union sued acting CFPB director Russell Vought on Sunday over the “ongoing effort to dismantle” the agency, arguing it violates the separation of powers between the branches of government. 

Shortly after he was confirmed as director of the Office of Management and Budget (OMB) last week, Vought was tapped to serve as acting CFPB director.  

He moved quickly once given the reins of the agency, ordering employees to “cease all supervision and examination activity” and announcing that he would not take the CFPB’s next drawdown of funds from the Federal Reserve. Staff were also told that headquarters would be closed for the week. 

On Monday, Vought directed employees to halt all work. The next day, the administration sent termination notices to about 70 probationary employees — employees hired in the past year or two who are slightly easier to fire. According to Reuters, dozens more employees were fired Thursday.