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American Focus > Blog > Economy > Judge orders bureau to reinstate fired employees
Economy

Judge orders bureau to reinstate fired employees

Last updated: March 28, 2025 11:41 pm
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Judge orders bureau to reinstate fired employees
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A federal judge has issued a ruling ordering the Consumer Financial Protection Bureau (CFPB) to halt its efforts to dismantle the agency. The leadership appointed by President Donald Trump, including acting director Russell Vought, has been instructed to cease any actions aimed at laying off staff members.

The decision, made by Judge Amy Berman Jackson, comes in response to a lawsuit filed by the CFPB employee union against Vought and his attempts to reduce the agency’s workforce. The judge’s ruling prohibits the termination of any CFPB employee without cause related to their performance or conduct. Additionally, Vought has been ordered not to issue any notices of reduction-in-force to staff members.

This ruling represents a significant setback for the Trump administration’s efforts to downsize federal agencies and undermines the Department of Government Efficiency’s involvement in firing employees. The decision breathes new life into the CFPB, the only federal agency dedicated to consumer protection in the nonbank financial sector.

Judge Berman’s order also mandates the reinstatement of probationary and term employees who were fired after Vought assumed leadership at the CFPB. Furthermore, Vought has been instructed not to tamper with agency data and to provide employees with necessary resources to carry out their duties effectively.

In her comprehensive ruling, Judge Berman emphasized the importance of the CFPB’s consumer complaint portal and the agency’s responsiveness to complaints. She directed the CFPB to reverse contract terminations initiated by Vought and required him to submit a compliance report by April 4.

The judge’s order applies not only to CFPB leaders but also to individuals affiliated with the Department of Government Efficiency. A spokesperson for Vought has not yet commented on the ruling.

See also  Old Town bar sues concealed carry holder whose gun fired, putting liquor license in jeopardy

In a separate opinion, Judge Berman referenced Elon Musk’s social media post declaring “CFPB RIP” and highlighted the urgency of preserving the agency’s existence amidst ongoing legal proceedings. The injunction aims to safeguard the CFPB’s contracts, workforce, data, and operational capacity until the case is resolved.

The ruling underscores the court’s commitment to upholding the CFPB’s mandate and ensuring the agency’s continued functioning. It serves as a significant development in the ongoing legal battle over the agency’s future and the protection of consumer interests in the financial sector.

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