WASHINGTON—A federal appeals court ruled Friday that a lower court lacked jurisdiction to temporarily block President Trump’s mass firings of CFPB employees—an outcome that could weaken the agency’s ability to oversee financial institutions.
The decision overturned an April trial court ruling that had halted the dismissal of 1,500 CFPB employees, Reuters reported.
However, the appeals court said its decision would not take immediate effect, leaving room for lawyers representing CFPB staff and consumer groups to appeal to the full court, Reuters said.
Attorney General Pam Bondi hailed the ruling on X as “another win for President Trump,” saying it would allow the CFPB “to right-size itself.” She also pointed to “our effort to dismantle” the agency, even as the administration has told the courts it intends to preserve the bureau in a reduced form, Reuters said.
Plaintiffs’ attorney Jennifer Bennett warned the decision could strip away vital protections, leaving consumers vulnerable to abuses by bad actors in the financial marketplace.