Trump Administration Sparks Controversy with Mass CFPB Firings

The Trump administration has terminated a new category of employees at the U.S. Consumer Financial Protection Bureau, escalating its efforts to downsize federal staff beyond probationary positions. Critics challenge the legality of these actions, sparking legal battles and raising concerns over potential discrimination and whistleblower retaliation.

In a bold move, the Trump administration has issued termination notices to a new class of employees at the U.S. Consumer Financial Protection Bureau (CFPB), marking an escalation in its efforts to reduce federal staff numbers. According to multiple sources and termination letters reviewed by Reuters, dozens of 'term employees' were informed of their immediate dismissal on Thursday evening.

While some employees discovered their access to IT systems had been revoked, others were blindsided by the sudden termination letters. The Office of Management and Budget, led by acting CFPB director Russell Vought, is yet to comment on these developments. Reuters has been unable to determine the exact number of employees affected.

This wave of firings forms part of President Donald Trump and billionaire entrepreneur Elon Musk's broader strategy to prune the federal bureaucracy, citing inefficiencies and financial wastage. However, the legality of these terminations is under scrutiny. Critics argue that non-probationary civil service members can only be dismissed for misconduct or poor performance. Legal opposition has emerged, with the CFPB employee union and organizations, including the NAACP, filing a lawsuit to halt further dismissals.

(With inputs from agencies.)