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

The court rejected a Justice Department bid to resume mass cuts and said the case should return to the district judge.

  • On Friday, the Court of Appeals for the Columbia Circuit blocked the Trump administration from immediately slashing the workforce at the Consumer Financial Protection Bureau by roughly two-thirds.
  • Congress established the CFPB after the 2008 financial crash to police consumer financial products, though Trump and high-ranking officials have called for the agency to be abolished as a politicized burden.
  • The Justice Department previously sought to cut up to 90% of employees and requested the case return to District court with a 45-day deadline, both demands the Court rejected.
  • Granting the administration's motion to return the case to District court, the appeals panel delivered a setback to White House efforts to shrink the consumer watchdog.
  • Earlier this month, Trump nominated a vocal CFPB critic to head the agency, while the CFPB plans to reassign all staff to Washington headquarters, likely driving resignations.
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WTVB broke the news on Friday, June 19, 2026.
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