Office of Management and Budget Director Russell Vought attends a cabinet meeting at the White House on February 26 and on Friday learned he will have to wait to end the Consumer Financial Protection Bureau. File Photo by Al Drago/UPI |
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March 29 (UPI) — The Trump administration will have to wait for a court challenge to end before dissolving the Consumer Financial Protection Bureau if allowed, a federal judge ruled Friday.
U.S. District Court for the District of Columbia Judge Amy Berman Jackson granted plaintiffs’ preliminary injunction motion to stop the CFPB’s dissolution by its director, Russell Vought, due to potential harm to its employees and others.
“If the defendants are not enjoined, they will eliminate the agency before the court has the opportunity to decide whether the law permits them to do it,” Jackson wrote. “The harm will be irreparable.”
She began her opinion with quotes from Elon Musk, Vought and President Donald Trump.
“CFPB RIP,” she quoted Musk saying in a Feb. 7 post on X.
“The CFPB has been a woke and weaponized agency against disfavored industries and individuals for a long time,” Vought said on Feb. 8. “This must end.”
Trump said the CFPB “was a very important thing to get rid of.”
Jackson said granting the motion for preliminary injunction came down to whether or not she should act to preserve the CFPB while the case is active.
“The answer is an overwhelming yes: the court can and must act,” Jackson wrote.
Jackson ordered the CFPB rehire all fired workers and allow them to access their work computers and offices while the injunction is in effect.
Congress created the CFPB in 2008 to protect consumers against unlawful business practices, but Vought on Feb. 10 ordered all employees to stop working.
“As of that date, the defendants were fully engaged in a hurried effort to dismantle and disable the agency entirely,” Jackson said.
“The elimination of the agency was interrupted only because plaintiffs sought and obtained the court’s intervention on the day the overwhelming majority of the employees were going to be fired,” she added.
The National Consumer Law Center is among plaintiffs in the case, along with the National Treasury Employees Union, National Association for the Advancement of Colored People, Virginia Poverty Law Center, the CFPB Employee Association and one individual.
The injunction “clears the way” for the CFPB to “get back to the work Congress created it to do – protecting people from predatory and unfair financial practices,” NCLC Executive Director Richard Dubois said Friday in a press release.
Former President Barack Obama appointed Jackson to the USDC bench in the nation’s capital in 2011.