WASHINGTON (AP) ā A federal judge to block the Trump administration from dismantling the , an agency that was targeted for mass firings before the courtās intervention.
U.S. District Judge Amy Berman Jackson agreed to issue a preliminary injunction that maintains the agencyās existence until she rules on the merits of a lawsuit seeking to preserve the agency. The judge said the court "can and must actā to save the agency from being shuttered.
Jackson ruled that, without a court order, President Donald Trump's administration would move quickly to shut down the agency that Congress created in the wake of the 2008 financial crisis.
āIf the defendants are not enjoined, they will eliminate the agency before the Court has the opportunity to decide whether the law permits them to do it, and as the defendantsā own witness warned, the harm will be irreparable,ā Berman Jackson said in her order.
Deepak Gupta, an attorney for the plaintiffs, said in a statement that the ruling "blocks the unprecedented plan to dismantle the CFPB ā an agency that Congress created to protect Americansā financial security. This ruling upholds the Constitutionās separation of powers and preserves the Bureauās vital work.
āWeāre heartened by the decision and look forward to continuing to press our case in court," Gupta said.
During a , Jackson heard testimony about the chaos that erupted inside the agency after government employees were ordered to stop working last month. The bureauās chief operating officer, Adam Martinez, said the agency was in āwind-down modeā after Trump fired its previous director, Rohit Chopra, on Feb. 1.
Trump installed a temporary replacement who ordered the immediate suspension of all agency operations, cancelled $100 million in contracts and fired 70 employees.
Martinez said the agencyās current leaders have adopted a more methodical approach than they initially did last month, when representatives of Elon Muskās Department of Government Efficiency arrived at its Washington headquarters.
CFPB is responsible for protecting consumers from financial fraud and deceptive practices. It processes consumer complaints and examines banks to protect student loan borrowers.
The National Treasury Employees Union, which represents more than 1,000 workers at the bureau, sued on Feb. 9 to block mass firings. Plaintiffsā attorneys argue that the administration doesnāt have the constitutional authority to eliminate an agency that Congress created by statute.
āThe defendantsā unlawful action will have immediate consequences for the Americans that the CFPB was designed by Congress to protect,ā .
Government lawyers have said the plaintiffs are seeking to impermissibly place the CFPB in a ājudicially managed receivership,ā with the court overseeing its day-to-day operations.
Jackson started her 112-page ruling by quoting Trump and his allies' own words about the bureau. Trump's billionaire adviser, Elon Musk, posted āCFPB RIPā on X, his social media platform, and added an emoji of a tombstone. White House budget director Russell Vought said it has been āa woke and weaponized agency against disfavored industries and individuals for a long time.ā Trump called it "a very important thing to get rid of."
āIn sum, the Court cannot look away or the CFPB will be dissolved and dismantled completely in approximately thirty days, well before this lawsuit has come to its conclusion,ā Jackson wrote.
Among the plaintiffs was 83-year-old Eva Steege, a Lutheran pastor in hospice care who had been working with CFPB to resolve her student loan debt before her death. The agency found she qualified for loan forgiveness and a $15,000 refund of overpayments, but the stop-work order went into effect before she could have a follow-up meeting and the official she was working with was fired.
āSteegeās fear of leaving her surviving family members saddled with her student loan debt came to pass on March 15, when she died,ā the judge wrote.
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Associated Press writer Lindsay Whitehurst contributed to this report.
Michael Kunzelman, The Associated Press
