A federal appeals court partially overturned a lower court’s ruling on the Trump administration’s efforts to dismantle the Consumer Financial Protection Bureau, allowing the agency to be reduced in size.
A three-judge panel on the U.S Court of Appeals for the District of Columbia Circuit issued an order Friday overturning part of a lower federal circuit court judge’s preliminary injunction over the Trump administration efforts to cut down the CFPB.
While Trump still cannot dismantle the agency altogether, the Friday order permits the administration to cut down its size by removing those who are “unnecessary to the performance” of the CFPB’s “statutory duties” as outlined by the legislation authorizing its creation.
The appellate court previously issued a blanket pause on the lower court’s order, as it took time to consider the appeal of the prior ruling.
Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia issued a ruling on March 28, finding that the administration could not shut down the CFPB. The ruling ordered the administration to suspend efforts to downsize the agency and rehire employees who had been let go.
The decision by the appeal court Friday could be appealed by the National Treasury Employees Union, which brought the lawsuit against acting CFPB director and Office of Management and Budget director Russell Vought over the actions of the agency to cut down its size.
HOUSE VOTES TO CANCEL RULE CAPPING BANK OVERDRAFT FEES, SENDING IT TO TRUMP
The Consumer Financial Protection Bureau is one of several federal agencies being downsized by the Trump administration, as such efforts have ignited lawsuits from various unions and other entities.
The agency was founded after the 2008 financial crisis, but has become problematic according to some lawmakers, including Rep. Byron Donalds (R-FL), who introduced legislation earlier this year to dismantle the CFPB, arguing it had gone “rogue.”