Appeals Court Strikes Down Order Protecting CFPB from Being Dismantled by Trump Admin
WASHINGTON, D.C. — Today, the United States Court of Appeals for the D.C. Circuit vacated a preliminary injunction prohibiting the Trump administration from taking steps to eliminate the Consumer Financial Protection Bureau (CFPB), including issuing reduction in force notices or terminating any employee for causes unrelated to the employee’s performance or conduct.
The injunction was entered in March in a case brought by Public Citizen Litigation Group, Gupta Wessler LLP, and National Treasury Employees Union (NTEU) on behalf of plaintiffs NTEU, National Consumer Law Center, National Association for the Advancement of Colored People (NAACP), Virginia Poverty Law Center, CFPB Employee Association, and Ted Steege.
Adina Rosenbaum, an attorney with Public Citizen Litigation Group, issued the following statement in response to the decision:
“The Trump administration does not have the authority to abolish the Consumer Financial Protection Bureau, which was created by Congress and which plays an important role in protecting consumers across the country.
“The district court found that the defendants were trying to eliminate the agency, and it entered an injunction to prohibit them from doing so while the case is ongoing. The court of appeals should have upheld that injunction to ensure that the administration does not illegally close the agency and deprive consumers of the protections to which they are entitled.
“We are strongly considering filing a petition for rehearing en banc.”