US appeals court blocks Trump admin from enacting new plans to slash consumer watchdog staff

June 19 (Reuters) – A federal appeals court on Friday blocked the Trump administration’s plans to immediately slash the workforce at the U.S. Consumer Financial Protection ​Bureau by about two-thirds, delivering a setback to the White House’s protracted ‌efforts to shrink the consumer watchdog.

The order from the U.S. Court of Appeals for the District of Columbia Circuit came in response to a revised plan the Justice Department submitted ​in late March following repeated legal defeats over its plans to decimate ​if not eliminate the CFPB.

The appeals court had been reviewing the ⁠administration’s appeal of a March 2025 injunction by a federal district court ​judge which temporarily barred the mass terminations.

The Justice Department, which previously tried to cut up ​to 90% of employees, had argued that it should be permitted to carry out its new plan immediately.

It also argued that the case should be returned to the district ​judge with a 45-day deadline to reassess the injunction.

The appeals court on ​Friday granted the administration’s motion to return the case to the district court, but ‌rejected ⁠the requests to resume staff cuts or impose a deadline on the district judge.

The CFPB was created by Congress after the 2008 financial crash to police consumer financial products.

Trump and other high-ranking officials have called for ​the agency to ​be abolished, accusing ⁠it of being a politicized burden on free enterprise. Democrats and agency defenders say damaging the agency amounts ​to a giveaway to industry at the expense of ​consumers.

Barred legally ⁠from enacting the most drastic actions, the administration has taken other measures to weaken the agency.

In May, the agency said it would reassign all staff to ⁠its ​Washington headquarters, a move likely to drive ​resignations. Earlier this month, Trump nominated a vocal CFPB critic to head the agency moving forward.