A U.S. judge has blocked the Trump administration and Elon Musk's Department of Government Efficiency from pursuing efforts to overhaul the federal government rapidly. This ruling follows a legal challenge from a workers' union and consumer advocates aimed at reversing the agency's abrupt shutdown last month, which led to mass layoffs, contract terminations, office closures, and a work stoppage.
U.S. District Judge Amy Berman Jackson granted the requests from the union and advocates. Democratic Senator Elizabeth Warren, who played a role in establishing the agency in response to the financial crisis, and the employee union expressed satisfaction with the decision.
Deepak Gupta, an attorney representing CFPB workers, noted that the agency had been "within hours of firing nearly its entire staff," stating that they are encouraged by the ruling and intend to further pursue their case in court.
Following the dismissal of the agency's director last month, President Trump indicated that the agency should be eliminated. Musk had tweeted "CFPB RIP" on the day that DOGE workers accessed the CFPB's headquarters.
However, after the lawsuit was initiated, agency officials reversed some positions in court, asserting that their intention was to eliminate the agency, which caused confusion among employees. Judge Berman Jackson emphasized that without an injunction, the agency could be dismantled before the court could determine the legality of such actions, warning that the harm could be irreparable.
In her judgment, she criticized key evidence presented by Justice Department lawyers, describing some claims as "a charade for the court's benefit." She remarked on the apparent insincerity of CFPB's top legal officer, Mark Paoletta, regarding the number of employees working, and noted that the agency's chief operating officer, Adam Martinez, seemed conflicted between loyalty to the new administration and the truth revealed in sworn statements.
Berman Jackson mandated that the CFPB must not delete any data, reinstate dismissed workers, and allow work to resume, among other directives.