On Friday, a federal judge intervened to prevent the Trump administration from attempting to dismantle the Consumer Financial Protection Bureau (CFPB). U.S. District Judge Amy Berman Jackson granted a preliminary injunction aimed at preserving the agency’s operations until a lawsuit’s merits concerning its potential shutdown can be adjudicated. The federal government now has the option to seek emergency relief from a federal appeals court.
The legal challenge was initiated by attorneys representing a workers’ union and other consumer advocates seeking to reverse the Trump administration’s previous steps to close the CFPB. This closure had prompted mass employee terminations, contract cancellations, office shutdowns, and a halt in agency-wide operations.
Deepak Gupta, an attorney representing CFPB workers, expressed relief over the decision and vowed to continue pursuing the case in court. The agency had been close to terminating nearly all its employees, according to Gupta.
After the CFPB’s director was dismissed last month, President Donald Trump suggested the agency should be dismantled. On the same day, senior adviser Elon Musk, who leads the Department of Government Efficiency (DOGE), posted “CFPB RIP” on X as DOGE employees accessed the CFPB headquarters. However, following the lawsuit, officials at the agency reversed some decisions, asserting in court that they had no intention to eliminate the agency entirely and directed employees to resume some duties.
Judge Berman Jackson stated that without intervention, the defendants could eliminate the agency before the legal process allowed a decision on their authority to do so, leading to irreversible harm. She critiqued the Justice Department’s evidence, labeling certain claims as a “charade for the court’s benefit.”
Mark Paoletta, the CFPB’s top lawyer, was criticized by the judge for claiming surprise at the low number of active CFPB employees. Judge Berman Jackson remarked that his argument undermined the readers’ intelligence.
The judge also addressed the testimony of Adam Martinez, the CFPB’s chief operating officer. She commented on his apparent inner conflict while on the stand, suggesting he was torn between loyalty to current employers and the reality of the situation. As a result, Berman Jackson ordered the CFPB to retain existing data, reinstate terminated staff, and allow work to continue.
This report also credits contributions from Reuters.
