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“Slicing over 80% of CFPB employees is not merely unwise; it’s a blatant assault on the financial wellbeing of countless Americans,” stated the president of the National Treasury Employees Union.<\/p>\n
\n\tA Washington, D.C., federal judge has put a temporary stop to President Donald Trump\u2019s 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.\n<\/p>\n
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\n\tDuring 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<\/em>.\n<\/p>\n <\/p>\n \n\t\u201cI am prepared to resolve this matter swiftly, but I will not allow the reduction in force to proceed until I have done so,\u201d 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.\n<\/p>\n <\/p>\n \n\tThe 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\u2019s Department of Government Efficiency (DOGE).\n<\/p>\n <\/p>\n \n\tIn a confidential declaration to the court\u2014filed under the pseudonym Alex Doe to avoid potential retaliation\u2014an individual on the CFPB’s staff reduction team disclosed that \u201cDOGE 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.\u201d\n<\/p>\n <\/p>\n \n\tDoe further revealed issues concerning CFPB Chief Operating Officer Adam Martinez and Chief Legal Officer Mark Paoletta: \u201cConcerns 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.\u201d\n<\/p>\n <\/p>\n \n\tAccording to Doe, \u201cActing Director Russell Vought likely sent an email to Adam Martinez with similar instructions,\u201d as recorded in the declaration filed by the National Treasury Employees Union (NTEU), which is actively contesting Trump’s attempts to dismantle the CFPB.\n<\/p>\n <\/p>\n \n\tAs reported by the AP<\/em> on Friday:\n<\/p>\n <\/p>\n \n\t 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.<\/p>\n \tJackson stated she will require Kliger\u2019s presence and possibly his testimony at the upcoming April 28 hearing. She expressed a desire to understand his role and actions.<\/p>\n \t\u201cWe won\u2019t decide until we know the full story,\u201d Jackson declared.\n<\/p><\/blockquote>\n <\/p>\n \n\tThe NTEU and its president, Doreen Greenwald, welcomed the judge\u2019s intervention, describing the court’s decision as \u201ca 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.\u201d\n<\/p>\n <\/p>\n \n\tLauren Saunders, associate director of the National Consumer Law Center, applauded Judge Jackson\u2019s commitment to upholding her orders. \u201cThe 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,\u201d Saunders emphasized.\n<\/p>\n <\/p>\n \n\tShe continued, \u201cThe administration\u2019s claim that it is merely shifting CFPB\u2019s 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.\u201d\n<\/p>\n <\/p>\n \n\t\u201cThe administration\u2019s pretense of reorienting CFPB\u2019s focus is a facade; the actual objective is its total disassembly.\u201d\n<\/p>\n <\/p>\n \n\tPublic Citizen Litigation Group’s attorney, Wendy Liu, argued, \u201cThe Trump administration\u2019s 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.\u201d\n<\/p>\n <\/p>\n \n\tMike Pierce, a former CFPB officer now heading the nonprofit Student Borrower Protection Center, stated, \u201cToday, the judiciary stood between Donald Trump, Elon Musk, and their unlawful plot to reduce the CFPB to an ineffective entity\u2014a perfect scenario for a billionaire with dubious financial practices.\u201d\n<\/p>\n <\/p>\n \n\tHe added, \u201cMusk\u2019s 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.\u201d<\/p>\n \n<\/div>\n \n