Judge Halts Mass Firings at CFPB Over Potential Trump-Era Court Violation

A federal judge temporarily blocked the mass termination of up to 1,500 employees at the U.S. Consumer Financial Protection Bureau (CFPB), citing concerns the Trump administration may have breached court-ordered protocols on dismissals. The layoffs, carried out Thursday, reportedly affected up to 90% of the agency's workforce.

Judge Amy Berman Jackson expressed alarm during an emergency hearing Friday, questioning whether the agency complied with a prior injunction requiring “particularized assessment” before any terminations. She ordered the dismissals suspended and mandated continued employee access to government systems.

The decision follows accusations in a sworn witness statement that senior officials, including one affiliated with Elon Musk’s Department of Government Efficiency (DOGE), ignored legal directives. The statement claimed DOGE official Gavin Kliger verbally abused staff and demanded 36-hour shifts. However, the Office of Personnel Management denied the claims, calling them “an outright lie” and stating Kliger played no role in the firings.

Mark Paoletta, CFPB’s chief legal officer, defended the move, asserting that a detailed internal review found the agency’s staffing levels far exceeded operational needs. But Jennifer Bennett, a lawyer for the employee union suing the agency, warned that entire departments vital to consumer protection—including supervision, complaint handling, and military affairs—were nearly wiped out.

The mass firings come amid ongoing efforts by President Trump and Elon Musk to dismantle the CFPB, long criticized by conservatives for alleged overreach and inefficiency. Despite public statements suggesting the agency may be abolished, administration officials told the court it will continue to operate in a reduced capacity.

The White House and CFPB have yet to comment further. The case remains under judicial review as the court assesses compliance with the injunction.