Federal Appeals Court Blocks CFPB Staffing Cuts

A federal appeals court has blocked the Trump administration from implementing a plan to cut approximately two-thirds of the staff at the Consumer Financial Protection Bureau, preserving the agency's current workforce while a legal battle over executive authority continues. The U.S. Court of Appeals for the District of Columbia Circuit issued the order late on Friday, June 19, 2026, refusing to allow immediate mass terminations and sending the case back to a lower court for further review.

The ruling is the latest development in a years-long effort by the administration to reduce the size and influence of the consumer watchdog. The revised plan, introduced in March 2026 by acting CFPB Director Russell Vought, sought to reduce the agency's staffing from roughly 1,200 employees at the start of the year to around 556. Earlier, more aggressive proposals had aimed to cut as much as 90 percent of the workforce, leaving only about 200 employees.

The legal challenge was brought by the National Treasury Employees Union, which represents CFPB employees. The union argued that such deep staffing cuts would prevent the bureau from carrying out its congressionally mandated duties to protect...