Federal Judge Hits Pause on Trump Administration’s Massive CFPB Layoff Plan

A federal judge in Washington, D.C. has temporarily blocked the Trump administration’s plan to lay off nearly 90% of the Consumer Financial Protection Bureau’s (CFPB) workforce, throwing a wrench in what would have been a jaw-dropping reduction in government employees overnight.

Judge Amy Berman Jackson issued the order on Friday, just hours before the job cuts were set to hit, after plaintiffs—including the CFPB Employee Association and other labor groups—claimed the administration was about to violate her previous injunction. The plaintiffs said the mass layoffs were scheduled for Friday evening, which would have left the agency limping along with just a few hundred employees out of more than 1,400.

According to Jackson, after an appeals court narrowed her earlier injunction, CFPB staffers were told the agency would proceed with a reduction in force (RIF)—essentially doing the exact opposite of what she had ordered. She didn’t mince words, telling the courtroom, "I’m willing to resolve it quickly, but I’m not going to let this RIF go forward until I have," and emphasizing her "deep concern, given the scope of action."

The Justice Department has been fighting Jackson’s orders, arguing that the injunction "improperly intrudes on the executive branch’s authority" and goes "far beyond what is lawful." In the meantime, Jackson’s ruling stops not only the layoffs but also blocks the administration from cutting employees off from their work computers—a move that feels pretty cold, even by bureaucratic standards.

For now, Judge Jackson has set an April 28 hearing to hear from the officials responsible for carrying out the RIF. Until then, more than 1,400 CFPB employees are in a holding pattern, waiting to see if they’ll be sent packing or get to keep their badges.

It’s been a legal rollercoaster since the Trump administration first announced the cuts back in February. Plaintiffs quickly filed for a restraining order, and by late March, the court had issued a preliminary injunction—finding that the employees had a good shot at winning on the merits. The government was told to rehire all terminated staff and steer clear of any further layoffs, but the Trump team appealed almost immediately. The D.C. Circuit Court of Appeals then partially stayed Jackson’s order, letting some provisions slide but leaving the core freeze on layoffs in place for now.

So, the fate of the majority of CFPB’s workforce now hangs on the next court date. One can only imagine the group chat drama among those 1,400 employees right now.