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US appeals court blocks Trump admin from enacting new plans to slash consumer watchdog staff
Yahoo • • business
Key Points:
- A federal appeals court blocked the Trump administration's plan to immediately cut the Consumer Financial Protection Bureau (CFPB) workforce by about two-thirds, marking a legal setback for efforts to shrink the agency.
- The court granted the administration's request to return the case to a district court for reassessment but denied the request to resume staff cuts or impose a deadline on the judge.
- The Justice Department had sought to implement a revised plan to reduce CFPB staff following previous legal defeats against attempts to decimate the agency.
- The CFPB, established after the 2008 financial crisis to regulate consumer financial products, has faced calls from Trump and allies to be abolished, while opponents argue weakening it harms consumer protections.
- Despite legal barriers, the administration has pursued other tactics to undermine the CFPB, including reassigning staff to headquarters and nominating a critic to lead the agency.
