Judge Orders Hearing on Alleged Dismantling of Consumer Protection Agency
Federal judge questions legality of Trump administration's actions to halt operations at the Consumer Financial Protection Bureau.
- U.S. District Judge Amy Berman Jackson has scheduled a hearing to determine if the Trump administration is unlawfully dismantling the Consumer Financial Protection Bureau (CFPB).
- The CFPB, created under the Dodd-Frank Act, is accused of being effectively shut down under acting Director Russell Vought, with mass firings, contract cancellations, and halted operations.
- The National Treasury Employees Union filed a lawsuit, claiming the administration's actions violate statutory requirements and could cause irreparable harm to the agency's functions.
- Judge Jackson extended an order preventing mass firings and data alterations, expressing concerns about the CFPB being 'choked out of existence' before a legal ruling is made.
- The Department of Justice defends the changes as part of a standard government transition, while critics argue the actions are an unprecedented effort to dismantle the agency.