On March 28, the U.S. District Court for the District of Columbia enjoined the Trump administration’s leadership from dismantling the CFPB. The district court opined there were expedited efforts to shut down the agency, finding the new leadership intended to eliminate the Bureau despite a consent order prohibiting further employee terminations.
The court mandated the CFPB to maintain records, reinstate employees, and refrain from enforcing a “stop work order” or terminating employees without cause. The injunction also required the agency to carry out its consumer complaint function and rescind contract termination notices issued after February 11. The government’s appeal to the D.C. Circuit may lead to a request for a stay of the injunction, requiring a demonstration of likely success on the merits and irreparable harm if the order is not stayed.
As previously covered by InfoBytes, the CFPB’s union submitted its amended proposed order for preliminary injunction. The government promptly appealed the order, leaving the fate of the CFPB and its employees in the hands of the D.C. Circuit.
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