Federal Judge Blocks Trump Administration's Attempt to Dismantle CFPB

A federal judge has temporarily blocked the Trump administration from dismantling the Consumer Financial Protection Bureau. This action ensures the bureau's continued operation amidst a lawsuit aimed at preserving it. The CFPB, created to protect consumers from financial fraud, faced significant operational changes after leadership turnover.

A federal judge has intervened to halt the Trump administration's efforts to disband the Consumer Financial Protection Bureau (CFPB), a move that preserves the agency's functions temporarily.

On Friday, US District Judge Amy Berman Jackson issued a preliminary injunction to keep the bureau operational until a lawsuit challenging its dissolution is resolved. Judge Jackson emphasized the court's duty to intervene to prevent the agency's closure.

The CFPB, established post-2008 financial crisis to protect consumers, saw significant upheaval when President Trump replaced its director in February. Since then, operations were suspended, and contracts voided, but agency leadership is now adopting a more organized approach to ensure the bureau continues its mission.

(With inputs from agencies.)