Appeals Court Tosses Decision Allowing Trump Mass Firings at Consumer Bureau

A full bench federal appeals court in Washington on Wednesday tossed out an earlier decision that would have allowed President Donald Trump's administration to resume mass firings at the U.S. Consumer Financial Protection Bureau, marking a setback for the White House.

The U.S. Circuit Court for the District of Columbia also agreed to re-hear an earlier appeal by the Trump administration against a lower court decision temporarily barring the White House from pursuing efforts to dismantle the CFPB, which Trump and other senior officials have said should be eliminated.

The Consumer Financial Protection Bureau was created by Congress in 2010 after the financial crisis, with a mandate to police banks, mortgage lenders, credit card companies and other financial firms for deceptive or abusive practices. The agency is funded outside the annual appropriations process through the Federal Reserve, a structure supporters say shields it from political pressure.

Trump and his allies have long argued the bureau is unconstitutional and should be eliminated, saying it wields excessive power with too little oversight. Trump administration officials have said the CFPB’s enforcement actions hurt consumers by raising costs and limiting access to credit, while congressional Republicans have repeatedly sought to defund or restructure the agency.

Since returning to office, Trump has moved aggressively to curtail the CFPB’s operations, including efforts to halt enforcement actions, roll back regulations and reduce staffing. Those steps have drawn legal challenges from consumer groups and Democrat state attorneys general, who argue the administration lacks the authority to dismantle an agency created by Congress.

Newsmax contributed to this report.