Federal Judge Blocks Trump's Dismantling of Consumer Financial Protection Bureau

A U.S. federal judge has issued a preliminary injunction stopping the Trump administration from dismantling the Consumer Financial Protection Bureau, preserving contracts, data, and employees' rights. The administration faced a lawsuit from a federal employee union over efforts to cut agency staff and reduce its effectiveness.

In a decisive legal setback for the Trump administration, U.S. District Judge Amy Berman Jackson ruled on Friday that efforts to dismantle the Consumer Financial Protection Bureau must be halted immediately. The ruling came in the form of a preliminary injunction.

The administration has faced challenges since a federal employee union sued, claiming sweeping measures to lay off many agency employees and diminish the effectiveness of the consumer watchdog. Jackson's ruling mandates the protection and reinstatement of agency contracts and data, critical components to ensure the legal functions of the agency are upheld.

Furthermore, the decision orders the CFPB to provide adequate office space for its employees or allow for remote work, and maintain a hotline dedicated to processing consumer complaints, ensuring continued consumer protection.

(With inputs from agencies.)