Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
Federal judge prevents Trump administration from dismantling CFPB
Demonstrators raise signs at a rally to protest the closing of the Consumer Financial Protection Bureau last month in Washington, D.C.
(
Jemal Countess
/
Getty Images
)
A federal judge on Friday blocked the Trump administration from dismantling the Consumer Financial Protection Bureau and ordered that all terminated employees be reinstated.
The temporary injunction from Judge Amy Berman Jackson at the U.S. District Court in Washington, D.C., also prevents the administration from firing any more CFPB workers or from deleting any of the agency's data or records, as part of a sweeping ruling to protect the agency.
"There is a substantial risk that the defendants will complete the destruction of the agency completely in violation of law well before the Court can rule on the merits, and it will be impossible to rebuild," Berman Jackson wrote in her order.
The order comes as a case proceeds in a lawsuit filed by the National Treasury Employees Union, which represents employees of the CFPB after the Trump administration effectively shuttered the agency last month.
Support for LAist comes from
The administration along with Elon Musk's team — the Department of Government Efficiency — had closed the CFPB's headquarters, ordered employees to cease most work and terminated over 100 probationary and term employees.
Judge Berman Jackson has yet to issue a final order on the case.
Representatives of the Trump administration and the CFPB did not immediately respond to requests for comment.
Deepak Gupta, a lawyer representing the CFPB's union welcomed the temporary ruling.
"Today's victory blocks the unprecedented plan to dismantle the CFPB—an agency that Congress created to protect Americans' financial security. This ruling upholds the Constitution's separation of powers and preserves the Bureau's vital work," Gupta said in an email.
"We're heartened by the decision and look forward to continuing to press our case in court," he added.
Support for LAist comes from
Berman Jackson has been skeptical of government efforts
Through the hearings so far, Judge Berman Jackson has appeared skeptical of the government's arguments, asking pointed questions to the attorneys representing the Trump administration.
Some work at CFPB has slowly resumed while the hearings were taking place, but Berman wrote on Friday that it was all "more likely a charade for the Court's benefit."
The Trump administration has made no secret of its ire for the bureau, which has long been unpopular with some Republicans and Wall Street and Silicon Valley executives who say it is too heavy-handed in its regulations.
The bureau was created by Congress as part of the Dodd-Frank Act, in the wake of the 2008 financial crisis. The CFPB is required to carry out a number of statutory requirements stipulated by Congress; some of the statutes predated Dodd-Frank and were unified under the CFPB's responsibility.
Copyright 2025 NPR
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
The critical findings are part of long-awaited after-action report was released Thursday. It contains recommendations for increasing emergency staffing and updating old systems. -
Diving has changed, mountain biking has been added. Here's where to watch the Olympics in person in 2028. -
'A Great Day in the Stoke' is a free, daylong event in Orange County billed as 'the largest gathering of Black surfers in history.' The fourth annual festival is set for Saturday in Huntington Beach. -
Kimmel returned less than a week after ABC suspended his show over comments he made about the assassination of right wing activist Charlie Kirk. -
Southern California might see some light rain tonight into Wednesday morning. After that, cooler weather is on the way, but expect the humidity to remain. -
A gate tax at Disney? It's a possibility.
Best of LAist