Breaking: Judge Temporarily Stops Trump’s Major Shake-Up at US Consumer Bureau

A Washington, D.C., federal judge has put a temporary stop to President Donald Trump’s plans to significantly downsize the federal workforce, specifically halting the termination of nearly 1,500 Consumer Financial Protection Bureau (CFPB) employees, which would have left about 200 staff remaining.

During a hearing on a Friday, U.S. District Judge Amy Berman Jackson expressed significant reservations about the planned cuts and decided to postpone any firings until she could determine if they contravened a previous order she had issued, as reported by The Associated Press.

“I am prepared to resolve this matter swiftly, but I will not allow the reduction in force to proceed until I have done so,” remarked Jackson, a nominee of former President Barack Obama. She has set a hearing for April 28, which will include testimonies from individuals involved in devising the plan.

The CFPB is currently under the temporary leadership of Russell Vought, the mastermind behind Project 2025 and the Director of the Office of Management and Budget. The agency has become a primary focus for billionaire Elon Musk, who informally leads Trump’s Department of Government Efficiency (DOGE).

In a confidential declaration to the court—filed under the pseudonym Alex Doe to avoid potential retaliation—an individual on the CFPB’s staff reduction team disclosed that “DOGE member Gavin Kliger oversaw the RIF. He forced the team to work continuously for 36 hours to ensure the dismissal notices were issued by yesterday (April 17). Gavin was verbally abusive to those he felt were not working quickly enough, accusing them of incompetence.”

Doe further revealed issues concerning CFPB Chief Operating Officer Adam Martinez and Chief Legal Officer Mark Paoletta: “Concerns were raised to Adam Martinez regarding a court mandate for a detailed assessment, yet we were instructed to focus solely on the numbers. This directive to disregard our concerns came from Mark Paoletta, who insisted that the number-focused RIF should proceed and that the leadership would handle any risks.”

According to Doe, “Acting Director Russell Vought likely sent an email to Adam Martinez with similar instructions,” as recorded in the declaration filed by the National Treasury Employees Union (NTEU), which is actively contesting Trump’s attempts to dismantle the CFPB.

As reported by the AP on Friday:

Martinez informed the judge he believes Kliger is an employee of the Office of Personnel Management detailed to the CFPB, not directly associated with DOGE.

Jackson stated she will require Kliger’s presence and possibly his testimony at the upcoming April 28 hearing. She expressed a desire to understand his role and actions.

“We won’t decide until we know the full story,” Jackson declared.

The NTEU and its president, Doreen Greenwald, welcomed the judge’s intervention, describing the court’s decision as “a confirmation for NTEU and its members, who firmly believe that the administration’s sudden and disorganized RIF process neither serves the public nor respects the rights of CFPB employees.”

Lauren Saunders, associate director of the National Consumer Law Center, applauded Judge Jackson’s commitment to upholding her orders. “The judiciary is our final safeguard against the administration’s ongoing attempts to dismantle the CFPB and enable unscrupulous businesses to break the law and exploit service members, veterans, and their families,” Saunders emphasized.

She continued, “The administration’s claim that it is merely shifting CFPB’s priorities is deceptive; the real aim is to disband the CFPB entirely, defying Congress’ directive to establish a consumer watchdog to address the failures that led to the severe 2007 financial crisis.”

“The administration’s pretense of reorienting CFPB’s focus is a facade; the actual objective is its total disassembly.”

Public Citizen Litigation Group’s attorney, Wendy Liu, argued, “The Trump administration’s efforts to cripple the CFPB must be thwarted. The judicial halt on this mass layoff is crucial for the survival and operational continuity of the agency.”

Mike Pierce, a former CFPB officer now heading the nonprofit Student Borrower Protection Center, stated, “Today, the judiciary stood between Donald Trump, Elon Musk, and their unlawful plot to reduce the CFPB to an ineffective entity—a perfect scenario for a billionaire with dubious financial practices.”

He added, “Musk’s urgency in dismantling the CFPB is evident; he knows full well that the agency would scrutinize his financial dealings. Today, the courts saw through this, but rest assured, Trump and Musk will persist in their endeavors. Their goal is to foster corporate financial misconduct, regardless of the legal boundaries they cross. The reasons are clear.”