The ruling leaves in place an injunction that has temporarily blocked large-scale CFPB layoffs while courts consider whether the agency can be significantly downsized without violating its statutory obligations.
The dispute stems from the Trump administration’s efforts to reshape the CFPB, which was created by Congress after the 2008 financial crisis to oversee consumer financial products and services.
Vought, who was named acting CFPB director in February 2025, has argued the bureau can meet its legal responsibilities with a smaller workforce, while employee groups and consumer advocates say the cuts would effectively dismantle the agency.
Shortly after taking the position, Vought moved to suspend most CFPB operations, closed its headquarters and said he would halt agency funding. In April 2025, the administration moved to dismiss roughly 90% of the workforce, prompting a court challenge that temporarily blocked the layoffs.
In August 2025, a federal appeals court panel allowed the reductions to proceed, resulting in about 1,500 dismissals.
The appeals court did not rule on the legality of the CFPB’s revised workforce reduction plan. Instead, it directed Jackson to consider the new proposal before the full appeals court continues its review of the case.
The D.C. Circuit retained jurisdiction over the appeal and instructed the parties to report back after the district court issues its decision.
U.S. Sen. Elizabeth Warren (D-Mass.), a ranking member of the Senate Banking, Housing and Urban Affairs Committee, issued a statement on Saturday in reaction to the decision.
“Last night, the D.C. Circuit rejected the Trump Administration’s latest request to shut down the Consumer Financial Protection Bureau, refusing to lift the injunction that has prevented Russ Vought from carrying out his plan to eliminate the agency,” Warren’s statement said. “Courts will also have a full chance to review Vought’s most recent unlawful plan to sideline the CFPB by firing most of its remaining staff.”
“We’ll keep fighting for the agency that has returned more than $21 billion directly to Americans who were cheated or scammed by big banks and giant corporations,” Warren added.
