Federal appeals court lifts block on Trump downsizing of CFPB
A federal appeals court has lifted a lower court’s injunction that blocked teh Trump administration’s effort to significantly downsize the Consumer Financial Protection Bureau (CFPB) by firing most of its employees. The U.S. Court of Appeals for the District of Columbia Circuit, in a 2-1 decision, vacated the preliminary injunction issued by U.S. District Judge Amy Berman Jackson. The majority, led by Judge Gregory Katsas, argued that the unions and other groups challenging the layoffs lacked jurisdiction, and that extensive judicial intervention in executive agency administration exceeds proper legal review.The ruling allows the Trump administration to move forward with restructuring the CFPB after months of legal disputes. the case was sent back to the district court for further proceedings. judge Cornelia Pillard dissented, warning that the decision undermines the constitutional separation of powers by preventing courts from checking the President’s ability to abolish federal agencies. Labor unions and civil rights groups, including the National Treasury Employees Union and NAACP, had filed lawsuits opposing the downsizing.
Federal appeals court lifts block on Trump downsizing of Consumer Financial Protection Bureau
A federal appeals court panel lifted a lower court’s order Friday that blocked the Trump administration‘s efforts to fire most employees from the Consumer Financial Protection Bureau.
A three-judge panel on the U.S. Court of Appeals for the District of Columbia Circuit voted 2-1 to vacate a preliminary injunction by U.S. District Judge Amy Berman Jackson, which prevented mass layoffs aimed at restructuring the watchdog agency for consumer finance. Judge Gregory Katsas, an appointee of President Donald Trump, wrote the majority opinion for the panel, arguing the unions and other groups that sued to block the plans to dismantle the agency lacked jurisdiction to do so.
“If the plaintiffs’ theory were viable, it would become the task of the judiciary, rather than the Executive Branch, to determine what resources an agency needs to perform its broad statutory functions,” Katsas wrote. “Such pervasive judicial control of agency administration falls well beyond limited [Administrative Procedure Act] review.”
The appeals court sent the case back down to the federal district court for further proceedings. The majority ruling was joined by Judge Neomi Rao, who was also appointed to the appeals court by Trump. Judge Cornelia Pillard, an appointee of former President Barack Obama, was the lone dissenter on the panel.
“The notion that courts are powerless to prevent the President from abolishing the agencies of the federal government that he was elected to lead cannot be reconciled with either the constitutional separation of powers or our nation’s commitment to a government of laws,” Pillard said. “I respectfully dissent from the decision vacating the district court’s amply supported preliminary injunction.”
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The victory for the Trump administration allows officials to proceed with significantly downsizing the agency after months of legal battles over the move. Jackson initially paused the Trump administration’s plans to dismantle the CFPB in March.
The CFBP is one of several federal agencies that the administration has targeted for significant downsizing, with labor unions and other groups filing lawsuits against nearly every effort. The National Treasury Employees Union and NAACP led the lawsuit challenging the downsizing of the CFPB.
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