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Prof Triggernometry
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Appeals court clears way for deep cuts, restructuring at CFPB
In a 2-1 decision, Trump appointees ruled that the alleged sweeping directive to close the agency couldn't be reviewed by the courts.A security officer works inside of the Consumer Financial Protection Bureau building headquarters Feb. 10, 2025, in Washington. | Jacquelyn Martin/AP
By Kyle Cheney and Michael Stratford08/15/2025 12:13 PM EDT
A federal appeals court panel has cleared the way for the Trump administration to largely dismantle the work of the Consumer Financial Protection Bureau, lifting a lower-court judge’s injunction that had preserved the agency’s structure — and barred mass layoffs — for months.
The 2-1 ruling, authored by Judge Gregory Katsas, said a series of legal defects in the lawsuit brought by CFPB employees and the NAACP doomed the case and required the district court judge’s blockade to be lifted.
Katsas, a Trump appointee, said the fatal flaw was the broad challenge against what the employees described as a master plan to shutter the agency altogether. While individual layoffs or contract terminations may be challenged in court, Katsas wrote that the sweeping directive to close the agency — alleged in the lawsuit — was not something the courts could review, particularly because it was unclear that the administration had made a final decision to carry out the closure.
“The plaintiffs seek to set aside an abstract decision, inferred from a constellation of discrete actions, to prophylactically ensure that the Bureau can fulfill its statutory mandate,” Katsas wrote. “If the plaintiffs’ theory were viable, it would become the task of the judiciary, rather than the Executive Branch, to determine what resources an agency needs to perform its broad statutory functions.”
What's this the 17th or 18th straight court victory for the President?