A federal appeals court blocked the Trump administration Tuesday from immediately cutting jobs at the Consumer Financial Protection Bureau, handing the administration a procedural setback in its bid to downsize the agency.
The court returned the case to the District Court, leaving CFPB staff protected from immediate layoffs while litigation continues at the lower level.
The administration has sought to gut the bureau's workforce as part of a broader push to shrink federal regulatory agencies. The CFPB, created after the 2008 financial crisis to oversee banks, lenders, and debt collectors, has faced sustained pressure since January.
The ruling does not resolve the underlying legal dispute. It keeps a temporary shield in place while District Court judges weigh the case on its merits.
Consumer advocacy groups, which have backed legal challenges to the cuts, called the decision a stay of execution for the agency's enforcement capacity.
The District Court is expected to schedule further proceedings in the coming weeks.