A federal judge temporarily blocked President Donald Trump’s attempt to drastically downsize the Consumer Financial Protection Bureau (CFPB), expressing serious concern over the administration’s intent to eliminate approximately 1,500 positions. U.S. District Judge Amy Berman Jackson criticized the administration for appearing to disregard court rulings and warned that the move could effectively dismantle the agency, rendering it incapable of fulfilling its legally mandated duties. Her order came in response to a lawsuit filed by the National Treasury Employees Union, which seeks to prevent the sweeping layoffs.
Court Challenges Trump’s CFPB Layoffs Amid Claims of Executive Overreach, Overreach Disputes
Judge Jackson’s ruling underscored growing friction between the judiciary and the Trump administration, particularly over executive overreach. Her statement noted that administration officials seemed to be “thumbing their nose” at previous court rulings. A hearing was scheduled for April 28 to determine whether the planned layoffs, known as a Reduction in Force (RIF), violated legal procedures. Jackson emphasized that the RIF would not proceed until the court had a clearer understanding of the administration’s actions.
Judge Blocks Trump’s CFPB Layoffs, Citing Executive Overreach and Whistleblower Allegations
The Trump administration has long criticized the CFPB for what it sees as regulatory overreach and inefficiency. Chief Legal Officer Mark Paoletta declared that the agency had exceeded its legal boundaries, describing its investigations as intrusive. The proposed reorganization would leave many legally required functions with only one staff member and slash critical departments like enforcement and supervision by over 80%, severely limiting the bureau’s capacity.
Whistleblower Alleges Coercive Layoff Tactics Amid Confusion Over Official’s Role
Sworn testimony from a pseudonymous CFPB employee, “Alex Doe,” revealed disturbing accounts of internal pressure to implement the layoffs swiftly. The employee claimed Gavin Kliger, allegedly part of the Department of Government Efficiency (DOGE), led the effort aggressively, keeping staff up for 36 hours and verbally berating those perceived as slow. The judge has ordered Kliger to attend the April 28 hearing to clarify his role in the process, as conflicting reports questioned whether he was affiliated with DOGE or another agency.
Despite the mounting controversy, the White House did not respond to inquiries regarding the judge’s order or the whistleblower’s statements. Meanwhile, a spokesperson for the Office of Personnel Management denied that Kliger led the RIF, suggesting the allegations were part of a broader campaign to undermine DOGE. As the court seeks clarity, the future of the CFPB hangs in the balance, caught in a high-stakes power struggle between branches of government.
