Key Points
A federal judge granted a preliminary injunction blocking efforts to shut down the CFPB.
The court found that Trump administration officials were actively trying to eliminate the agency.
The ruling is seen as a major victory for consumer advocates and agency employees.
A federal judge has granted a preliminary injunction halting what plaintiffs described as a coordinated effort by the Trump administration to dismantle the Consumer Financial Protection Bureau (CFPB), the agency created to protect Americans from abusive financial practices.
The lawsuit, brought by the National Treasury Employees Union (NTEU), Public Citizen Litigation Group, and Gupta Wessler LLP, accuses the administration — specifically Acting CFPB Director Russell Vought — of attempting to illegally shut down the agency in direct violation of federal law.
In a sweeping 112-page opinion, the judge sided with the plaintiffs, concluding that the administration’s actions were aimed at eliminating the agency entirely, and that the plaintiffs are likely to succeed in proving that such actions are unlawful.
A "hurried effort"
The court’s opinion described a “hurried effort” to dismantle the CFPB, including:
Firing probationary and term-limited employees without cause
Cutting off agency funding
Terminating contracts
Closing CFPB offices
Implementing a reduction in force (RIF) to lay off remaining staff
“These actions were taken in complete disregard for the decision Congress made 15 years ago,” the court wrote, referencing the CFPB’s founding in the wake of the 2008 financial crisis.
Advocates applaud the ruling
“Dismantling the CFPB would have devastating consequences for consumers across the country,” said Wendy Liu, an attorney with Public Citizen Litigation Group. “The court’s order is a crucial step toward preserving the agency and blocking the Trump administration’s illegal attempt to shutter it.”
The lawsuit’s plaintiffs include a coalition of consumer advocacy organizations, including the National Consumer Law Center, NAACP, Virginia Poverty Law Center, the CFPB Employee Association, and individual plaintiff Ted Steege.
Background: A Decade of Consumer Protection
The CFPB was created by Congress in 2010 as part of the Dodd-Frank Act in response to the mortgage and banking crises. Since then, the agency has returned billions of dollars to consumers and cracked down on predatory lending, abusive debt collection, and deceptive financial products.
Critics of the Trump administration say its recent actions violate both the separation of powers and Congress’s intent to maintain a strong consumer watchdog.
The case is ongoing, but Friday’s ruling is a major legal and symbolic win for those fighting to preserve the CFPB’s mission.