WASHINGTON—The Trump Administration and the union representing employees at the CFPB have jointly asked a federal court to pause litigation over a plan to eliminate roughly half of the agency's remaining workforce until President Trump's nominee to lead the Bureau has an opportunity to review the proposal if confirmed by the Senate, Law360 reported.
The joint request, filed in U.S. District Court in Washington, argues that CFPB director nominee Brian Johnson should be allowed to determine whether to move forward with the latest reduction-in-force plan rather than have the court rule while the agency remains under acting Director Russell Vought. Judge Amy Berman Jackson subsequently agreed to pause the case pending Senate action on the nomination, Bloomberg Law said.
The proposed workforce reduction would cut the CFPB's staff to approximately 556 employees, eliminating about half of the Bureau's current workforce and sharply reducing its supervision and enforcement operations. The layoffs have been tied up in court for months after the National Treasury Employees Union challenged the administration's efforts to dramatically shrink the agency, arguing they would effectively dismantle the CFPB in violation of federal law.
The pause signals a potential shift in the Administration's approach as Johnson, a former CFPB official and current Capital One executive, prepares to take over the agency if confirmed. Reuters reported that Vought, who has repeatedly called for dismantling the CFPB, is expected to step down once Johnson is confirmed, giving the incoming director authority to determine whether to proceed with, modify or abandon the current layoff plan.