In a per curiam order, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit on April 11, 2025, partially stayed a preliminary injunction halting any attempt to dismantle the CFPB. Judges Cornelia Pillard, Gregory Katsas and Neomi Rao limited the scope of U.S. District Court for the District of Columbia Judge Amy Berman Jackson's March 28 preliminary injunction but allowed several remaining provisions to remain intact.
Judge Jackson's preliminary injunction (on which Holland & Knight previously reported) required the CFPB to reinstate all terminated employees and refrain from further terminations or reductions in force (RIFs) until claims against the CFPB were fully resolved. As also previously reported by Holland & Knight, the D.C. Circuit stayed these provisions insofar as they require to reinstate or prohibit the termination of employees "unnecessary to the performance of [the CFPB's] statutory duties." The remaining provisions of Judge Jackson's order continue, particularly the requirements that the agency refrain from deleting agency data, rescind all notices of contract cancellations and maintain all consumer reporting processes. In combination with the prohibition against blanket administrative leave or stop-work mandates, the D.C. Circuit's order gives the agency latitude in workforce adjustments while ensuring the CFPB's general functions continue pending further review.
Though the CFPB has reaffirmed its commitment to maintaining the agency's statutory functions and continuity of the status quo, this has not assuaged the concerns of agency employees. In an April 11 press release, Catherine Farman, president of the CFPB chapter of the National Treasury Employees Union, highlighted the concern that the CFPB and its acting director, Russell Vought, will test the limits of the D.C. panel's order and conduct RIFs that return agency employees to the same risk of termination that occurred prior to Judge Jackson's preliminary injunction. Farman indicated that should any RIFs be issued moving forward, they will be met with legal recourse.
The D.C. Circuit's order will remain in place while the panel considers the merits of the CFPB's appeal. The panel has placed this case on an expedited track and will hear oral argument on May 16, 2025, before issuing a final order.
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