In a ruling on Friday, a judge determined that the Consumer Financial Protection Bureau (CFPB) cannot terminate employees without cause, thwarting President Donald Trump’s attempts to dismantle the agency. The National Treasury Employees Union and the CFPB Employee Association filed a lawsuit against the agency and its acting director, Russell Vought, seeking to prevent mass firings and the deletion of agency data. The judge’s order prohibits the agency from firing employees without cause and from issuing notices of reduction-in-force. The court also ordered Vought and the CFPB not to reduce the agency’s funding.
Vought had previously attempted to cut off additional CFPB funding and instructed employees to cease various activities. Trump has expressed interest in eliminating the bureau entirely, citing the need to eliminate waste, fraud, and abuse. Elon Musk, a Trump ally, has also criticized the CFPB.
This ruling is the latest in a series of setbacks for the Trump administration’s efforts to reshape the federal government. Despite previous wins, such as the end of a temporary pause on a program incentivizing federal employee resignations, the administration has faced challenges in implementing its agenda. This ruling, along with other recent legal decisions, underscores the ongoing tension between the administration’s goals and legal constraints.
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