Judicial Halt: CFPB Mass Firings Under Scrutiny

A federal judge halted mass firings at the U.S. Consumer Financial Protection Bureau, questioning their legality under current court orders. A witness accused officials associated with the Department of Government Efficiency of misconduct. The situation escalates as President Trump and Elon Musk push for the agency's reduction.

A federal judge has put a stop to mass firings at the U.S. Consumer Financial Protection Bureau (CFPB) amidst concerns over their compliance with court orders. Judge Amy Berman Jackson expressed her apprehension about the legality and rapid execution of the dismissals initiated by the Trump administration.

The dramatic staff reductions, which accounted for roughly 90% of the workforce, have been challenged by a witness statement suggesting potential misconduct by senior officials associated with Elon Musk's Department of Government Efficiency. Accusations include demands for excessive work hours and verbal abuse of employees. Last week, an appeals court had mandated individual assessments before any layoffs.

CFPB's chief legal officer, Mark Paoletta, contended that the agency adhered to the court's directives, citing an evaluation that found excess resources. Despite collaborative calls from President Trump and Musk for its abolition, the CFPB is expected to endure in some capacity. Judge Jackson's injunction has temporarily suspended the job cuts, maintaining employees' access to systems.

(With inputs from agencies.)