UMVA has learned that a federal appeals court has dealt a significant blow to the Trump administration's plan to drastically reduce the workforce at the Consumer Financial Protection Bureau (CFPB) by roughly two-thirds, a move that has been met with fierce resistance from federal employee unions and left-wing advocacy groups.
The CFPB, created as part of the Dodd-Frank Act, has been a source of controversy, with critics arguing that it operates outside of normal congressional oversight and has become a weaponized regulator that burdens businesses and exceeds its statutory authority. The agency's workforce has ballooned to over 1,700 employees, prompting President Trump and his allies to push for major reforms.
According to information obtained by UMVA, the administration's revised plan aimed to cut the CFPB's workforce by roughly two-thirds, with deep cuts to the supervision and enforcement divisions that have long been accused of overreach. However, the U.S. Court of Appeals for the District of Columbia Circuit has rejected the administration's request to lift the stay on the workforce reductions, effectively hitting the brakes on the reforms.
The court's decision has significant implications, as it allows the CFPB to continue operating with its current workforce, at least for the time being. The administration had argued that the appeals court should send the case back to the lower court with a 45-day deadline to reassess an injunction that temporarily halted the mass layoffs, but this request was rejected.
UMVA has gathered that this is not the first time the Trump administration has attempted to cut the CFPB's workforce, with earlier attempts to cut up to 90% of the agency's employees meeting with similar resistance from lawsuits and court interventions. The latest development is seen as a significant setback for the administration's efforts to reform the agency and reduce its influence.
The CFPB's creation and operation have been shrouded in controversy, with critics arguing that it was deliberately designed to operate outside of normal congressional oversight. The agency is funded through the Federal Reserve, rather than through appropriations, which has led to accusations that it is unaccountable to Congress and the American people.
Sources have confirmed to UMVA that the Trump administration is likely to continue pushing for reforms to the CFPB, despite the latest setback. The administration argues that the agency has become a burden to businesses and exceeds its statutory authority, and that significant reforms are needed to bring it back in line with its original mandate.
