Appeals Court Ruling: Trump's CFPB Layoffs Permitted, Abolition Barred

An appeals court has allowed President Trump's administration to proceed with layoffs at the Consumer Financial Protection Bureau (CFPB) but blocked attempts to dismantle it. The agency has faced criticism from Republicans as overreaching, but the ruling maintains its operational status against complete abolition efforts.

The Trump administration can lay off CFPB workers but cannot abolish the agency, an appeals court decided Friday. Created post-financial crisis to regulate consumer finance, CFPB has been a GOP target over accountability issues and alleged overreach.

In February, Trump called for the agency's elimination. However, a federal judge halted steps toward dismantlement, including mass dismissals and work stoppages, after the White House motioned against a March injunction.

The court upheld layoffs yet supported preventing work stoppages, including through stop-work orders or administrative leave, maintaining CFPB's key functions.

(With inputs from agencies.)