Appeals Court Narrows Injunction on CFPB Dismantling

A federal appeals panel is considering a compromise on the Trump administration's efforts to dismantle the Consumer Financial Protection Bureau (CFPB), which has been under legal scrutiny following a preliminary injunction by Judge Amy Berman Jackson. The injunction, issued in March, prevents the administration from terminating employees and canceling contracts, as well as mandating the reinstatement of previously fired workers. During recent hearings, the panel expressed concerns over the administration's actions and indicated a possible willingness to narrow the scope of the injunction to allow some personnel changes while still keeping the agency operational. The CFPB's director, Russell Vought, is facing a lawsuit from employee unions, alleging that the administration's measures violate separation of powers principles. Despite the administration's claims of having no plans to shut down the CFPB, concerns remain about its future stability and functionality amidst ongoing legal challenges. The D.C. Circuit Court is set to hear further arguments on this issue soon.