The stay that remains in effect blocks new staff reduction plans as the case makes its way through court.
A federal appeals court on Friday prevented the Trump administration from advancing with new plans to cut staffing at the Consumer Financial Protection Bureau, the federal agency overseeing consumer financial products and services.
In a per curiam order issued by an en banc panel of the U.S. Court of Appeals for the District of Columbia Circuit, the court denied a motion to modify a stay pending appeal. However, the court granted a motion for limited remand to the district court, while keeping the broader case in abeyance, with the en banc court retaining jurisdiction.
In the case, National Treasury Employees Union v. Russell Vought, the union represents employees at the bureau. The union has challenged the administration’s efforts to reduce the agency’s workforce. The stay that remains in effect blocks staff reduction plans while the limited issues are returned to the district court for further consideration.
The Consumer Financial Protection Bureau (CFPB) was established in the wake of the 2008 financial crisis to enforce federal consumer financial laws.
Successive administrations have had varying views on the agency’s structure and scope. The Trump administration has worked toward workforce reductions at the bureau amid efforts to slash staffing at federal agencies and return certain consumer protection functions to traditional banking regulators, as well as the Federal Trade Commission.
President Donald Trump signed a directive on his first day in office to strip thousands of “policy-influencing”—or managerial—workers of the civil service protections that have traditionally made it difficult to terminate their employment.
