The US Court of Appeals for the D.C. Circuit intervened on June 19 to prevent significant workforce reductions at the Consumer Financial Protection Bureau, which had faced ongoing attempts at dismantlement since early 2025. The ruling keeps the CFPB intact, rejecting a plan by the Trump administration aimed at drastically reducing agency staffing.
Understanding the proposed workforce cuts is essential. Originally, the CFPB employed about 1,100 to 1,200 people pre-inauguration. The administration's strategy sought to reduce the staff by nearly 90%, potentially leaving only 200 employees. Later adjustments aimed for a more moderate cut to about 556 positions, still representing an over 50% reduction from earlier levels.
In an additional setback, the court also dismissed a request from the administration that would have allowed a 45-day postponement to review the case further at the district court.
The backdrop of this legal battle stems from actions initiated by the National Treasury Employees Union and other petitioners who challenged these staffing reductions. Their argument rests on the foundation that the Dodd-Frank Act of 2010 established the CFPB in response to the 2008 financial crisis. Thus, any administrative moves to disband it face legal scrutiny. The case, known as NTEU v. CFPB, has developed since 2025, with initial court decisions already preventing mass layoffs at the bureau.
Russell Vought, the Acting Director of the CFPB, has been at the forefront of these restructuring initiatives. Notably, the Supreme Court affirmed the constitutional structure of the CFPB in 2020, emphasizing that modifications regarding the director's removal processes do not permit the executive branch to eliminate the agency through workforce attrition without formal congressional action.