While this ruling is a temporary win for the CFPB, Union President Cat Farman cautioned that ongoing vigilance is necessary against further attempts to undermine the agency.

The CFPB has been a target for cuts and restructuring, with reports indicating that the agency planned to lay off up to 95% of its staff and delete essential data.

Judge Jackson's ruling mandates the reinstatement of all terminated employees, halting further terminations, and restoring the operational integrity of the CFPB.

In response to the administration's actions, the National Treasury Employees Union filed a lawsuit to block the mass firings, arguing that the administration lacks the constitutional authority to eliminate the agency.

U.S. District Judge Amy Berman Jackson emphasized the need for court intervention, stating that harm to the agency would be irreparable if it were shut down before legal decisions are finalized.

A federal judge has issued a preliminary injunction to protect the Consumer Financial Protection Bureau (CFPB) from potential dismantling by the Trump administration.

The ruling comes amidst significant turmoil within the CFPB, including mass layoffs and operational suspensions following the firing of its director, Rohit Chopra, on February 1, 2025.

Russell Vought, the new director of the White House Office of Management and Budget, announced that the CFPB would no longer receive its usual funding from the Federal Reserve, amounting to $711.6 million for the year.

Deepak Gupta, attorney for the plaintiffs, hailed the ruling as a victory for consumer protection and the Constitution's separation of powers, emphasizing the CFPB's critical role in safeguarding financial security.

The judge highlighted the potential harm of dismantling the CFPB by referencing the case of 83-year-old Eva Steege, who died awaiting loan forgiveness assistance from the agency.

Judge Jackson criticized the Trump administration for disregarding Congress' intent in creating the CFPB after the 2008 financial crisis, underscoring the agency's importance.

Without judicial intervention, the judge noted that the CFPB would face complete dissolution within approximately thirty days, well before the lawsuit concludes.