Appeals Court Keeps CFPB Staff Cuts on Hold as Workforce Reduction Fight Returns to District Court

A federal appeals court has blocked the Trump Administration from immediately moving forward with plans to significantly reduce the Consumer Financial Protection Bureau’s workforce, sending the dispute back to U.S. District Court Judge Amy Berman Jackson for further review.

The D.C. Circuit Court of Appeals remanded the case to the district court but rejected the administration’s request to lift an existing injunction and resume layoffs while the litigation continues. The court also declined to impose a 45-day deadline for Judge Jackson to rule on the CFPB’s revised reduction-in-force (RIF) plan.

The latest proposal from Acting CFPB Director Russell Vought would eliminate roughly half of the agency’s remaining workforce, including deep cuts to the supervision, enforcement, and operations divisions. The administration argues the reductions are necessary due to budget constraints following legislation that reduced the CFPB’s funding cap. CFPB officials have maintained that the agency cannot sustain current staffing levels under its revised budget.

Employee representatives and consumer advocates strongly oppose the plan, arguing that the proposed cuts would leave the bureau unable to carry out its statutory responsibilities, including supervision of financial institutions, enforcement of consumer protection laws, and maintenance of its consumer complaint system.

Judge Jackson previously blocked an earlier effort to reduce CFPB staffing, finding evidence that Bureau leadership sought to effectively dismantle the agency. The administration has disputed that characterization, arguing it is simply exercising its authority to restructure operations.

The remand ensures that the district court will now examine whether the CFPB’s revised staffing plan would allow the agency to continue fulfilling its congressionally mandated functions. Meanwhile, the injunction remains in place, preventing large-scale workforce reductions while the legal battle continues.