A pause is in place on the layoffs at the Consumer Financial Protection Bureau along with a temporary protection to its funds and records.
After a case was brought forth by the National Treasury Employees Union against Russell Vought, the acting CFPB director, Judge Amy Berman announced an agreement for a temporary restraining order on firings at the agency, the transfer of its reserve funds and any destruction of records.
A hearing will be held on the case March 3.
The agreement with the Trump Administration follows a hectic series of events surrounding the agency.
After a short stint as acting director of the agency by Scott Bessent, Vought, the leader of the Office of Management and Budget, took over at the CFPB. Vought ordered a halt to the agency’s work and the closing of its offices, according to reports.
Vought also said on X he notified the Federal Reserve that the CFPB would not be taking its draw of funding.
“The Bureau’s current balance of $711.6 million is in fact excessive in the current fiscal environment. This spigot, long contributing to CFPB’s unaccountability, is now being turned off,” Vought said on X.
He also stated on X that the “CFPB has been a woke and weaponized agency against disfavored industries and individuals for a long time.”
President Donald Trump nominated Jonathan McKernan to take over the agency.
The Dodd-Frank Act Wall Street Reform and Consumer Protection Act passed by Congress in 2010 created the CFPB. It was in reaction to the 2008 financial crisis.
