Court Prohibits CFPB from Dismissing Employees Without Cause, Marking a Setback for DOGE
The consumer bureau plays a pivotal role in a collaborative initiative between the White House and DOGE aimed at significantly decreasing the federal bureaucracy.
TroibNews 
A federal judge ruled on Friday that officials from the Trump administration must reinstate workers from the Consumer Financial Protection Bureau (CFPB) who were dismissed and ensure that agency data is maintained, marking a significant victory for the employees' union.
“Defendants shall not terminate any CFPB employee, except for cause related to the individual employee’s performance or conduct; and defendants shall not issue any notice of reduction-in-force to any CFPB employee,” U.S. District Judge Amy Berman Jackson stated in her ruling. She issued a preliminary injunction to keep the agency functioning in its current form while she reviews the lawsuit aimed at preserving it.
Sen. Elizabeth Warren, credited with the establishment of the agency during her time as a law professor, praised the decision.
“Make no mistake: this fight isn’t over,” she remarked in a statement. “The case will continue in court, and all of us need to keep fighting for the little agency that has returned more than $21 billion back to families who were cheated, tricked, and scammed by big banks and other financial companies.”
The lawsuit, filed by the CFPB union against acting Director Russ Vought, provides insight into the turmoil triggered at the federal agency by the administration and Department of Government Efficiency (DOGE) officials. The CFPB has become a focal point of a coordinated attempt by the White House and DOGE to significantly reduce the federal workforce.
This ruling coincided with a federal appeals court decision allowing President Donald Trump to dismiss members of executive branch boards that handle federal employee grievances. Additionally, Trump issued an executive order aimed at dismantling collective bargaining rights for unions at various federal agencies.
During the proceedings, CFPB Chief Operations Officer Adam Martinez testified that DOGE officials were intent on shutting down the agency swiftly in early February, with plans to eliminate 1,175 of its 1,700 employees.
Throughout the hearings, Jackson voiced skepticism regarding the government's claim that Vought was not attempting to dismantle the bureau. She questioned whether employees were aware they were expected to fulfill their duties after Vought instructed them to halt most operations on February 8 and closed the headquarters on February 10.
Initially, the agency's leadership aimed to terminate all contracts, only to realize that some were crucial for completing legally mandated tasks, leading to the withdrawal of 30-day termination notices required for contractors, as Martinez recounted on March 10.
“It’s like, shoot first and ask questions later?” Jackson remarked during that hearing.
“That’s what it felt like,” Martinez replied.
Representatives for the CFPB and DOGE did not immediately provide comments following the ruling.
Ramin Sohrabi for TROIB News
“Defendants shall not terminate any CFPB employee, except for cause related to the individual employee’s performance or conduct; and defendants shall not issue any notice of reduction-in-force to any CFPB employee,” U.S. District Judge Amy Berman Jackson stated in her ruling. She issued a preliminary injunction to keep the agency functioning in its current form while she reviews the lawsuit aimed at preserving it.
Sen. Elizabeth Warren, credited with the establishment of the agency during her time as a law professor, praised the decision.
“Make no mistake: this fight isn’t over,” she remarked in a statement. “The case will continue in court, and all of us need to keep fighting for the little agency that has returned more than $21 billion back to families who were cheated, tricked, and scammed by big banks and other financial companies.”
The lawsuit, filed by the CFPB union against acting Director Russ Vought, provides insight into the turmoil triggered at the federal agency by the administration and Department of Government Efficiency (DOGE) officials. The CFPB has become a focal point of a coordinated attempt by the White House and DOGE to significantly reduce the federal workforce.
This ruling coincided with a federal appeals court decision allowing President Donald Trump to dismiss members of executive branch boards that handle federal employee grievances. Additionally, Trump issued an executive order aimed at dismantling collective bargaining rights for unions at various federal agencies.
During the proceedings, CFPB Chief Operations Officer Adam Martinez testified that DOGE officials were intent on shutting down the agency swiftly in early February, with plans to eliminate 1,175 of its 1,700 employees.
Throughout the hearings, Jackson voiced skepticism regarding the government's claim that Vought was not attempting to dismantle the bureau. She questioned whether employees were aware they were expected to fulfill their duties after Vought instructed them to halt most operations on February 8 and closed the headquarters on February 10.
Initially, the agency's leadership aimed to terminate all contracts, only to realize that some were crucial for completing legally mandated tasks, leading to the withdrawal of 30-day termination notices required for contractors, as Martinez recounted on March 10.
“It’s like, shoot first and ask questions later?” Jackson remarked during that hearing.
“That’s what it felt like,” Martinez replied.
Representatives for the CFPB and DOGE did not immediately provide comments following the ruling.
Ramin Sohrabi for TROIB News
