HousingWireHousingWire
In the latest twist involving the Consumer Financial Protection Bureau (CFPB), a federal judge in Washington, D.C., on Friday ordered the reinstatement of all employees who were laid off last month by acting director Russell Vought.
Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia issued her ruling in conjunction with a lawsuit brought by the National Treasury Employees Union. Earlier this month, after hearing testimony from CFPB chief operating officer Adam Martinez, Jackson indicated that she was “leaning” toward a preliminary injunction in the case that would pause plans to wind down the bureau’s operations.
The judge issued several orders on Friday that pertain to CFPB leaders, including Vought, as well as the Elon Musk-helmed. U.S. DOGE Service.
Central to the ruling was the reinstatement of “all probationary and term employees” who were let go since Feb. 10. The bureau is prohibited from terminating any employee for reasons unrelated to performance or conduct, nor can it issue a reduction-in-force notice to any employee.
Jackson also ordered the CFPB to allow employees to “perform their statutorily mandated functions” by giving them either fully equipped office space or proper equipment to work remotely. Vought had shut down the bureau’s Washington, D.C., office after taking over as acting director.
The bureau will also be required to have a working consumer complaint portal and to respond to complaints filed there. Jackson has given Vought a deadline of Friday, April 4, to file a report that confirms compliance with her orders.
Actions to reduce the size and scope of the CFPB accelerated quickly after President Donald Trump’s inauguration in January. Trump fired Biden-era appointee Rohit Chopra and temporarily replaced him with U.S. Treasury Secretary Scott Bessent.
Vought, the architect behind the conservative policy playbook Project 2025, was given the title of acting director only days later. Since then, the Trump administration has nominated Jonathan McKernan to head the bureau. McKernan had a Senate confirmation hearing at the end of February but a vote to confirm him has yet to be scheduled.
Read more about actions involving the CFPB and other federal housing agencies here.
