A federal appeals court handed President Donald Trump’s administration a major victory Friday, allowing the dismantling of the Consumer Financial Protection Bureau (CFPB) to move forward.
The U.S. Court of Appeals for the District of Columbia Circuit vacated a preliminary injunction that had previously blocked the effort.
The battle began on February 1, when Trump dismissed CFPB Director Rohit Chopra, a Biden appointee. Acting Director Russell Vought quickly ordered staff to halt operations and close the agency’s headquarters.
The move triggered a lawsuit from the National Treasury Employees Union, representing most CFPB staff, along with other plaintiffs, according to the Conservative Brief.
U.S. District Judge Amy Berman Jackson initially blocked the Trump administration, citing concerns over the abrupt closure of the agency. But lawyers for the administration argued that the injunction was an overreach that interfered with the president’s ability to downsize federal agencies according to policy directives.
The CFPB, created under the 2010 Dodd-Frank Act, is funded by the Federal Reserve and operates largely outside congressional oversight. Its budget is not subject to approval by lawmakers, a unique feature among federal agencies. Critics argue this independence has made the CFPB “untouchable.”
In 2015, Investor’s Business Daily reported that the CFPB diverted millions of dollars in settlement payments intended for victims of lending discrimination to groups tied to the Democratic Party. The Bureau also proposed a Civil Penalty Fund described as a “shakedown” mechanism targeting financial institutions.
The Fifth Circuit echoed these concerns in October 2022, noting that the CFPB’s insulation from Congress made it “no longer dependent, and as a result, no longer accountable” to lawmakers or the public.
Friday’s ruling is part of a broader pattern of legal victories for the Trump administration. This week, a federal judge also rejected an effort to overturn Alabama’s law restricting diversity, equity, and inclusion (DEI) programs in public schools and universities.
U.S. District Judge David Proctor ruled that University of Alabama professors and students challenging the law failed to justify a preliminary injunction, leaving the restrictions in effect as the case proceeds.
Enacted last October, the law bans schools from hosting or funding DEI programs that advance what it calls “divisive concepts,” such as assigning guilt based on race or ethnicity.
Proctor clarified that educators can still discuss topics like racism or historical injustice “in an objective manner without endorsement.” Teachers presenting empirical evidence on disparities or discussing theories of systemic bias would not violate the law.
The decision reflects a growing pushback against DEI programs nationwide, with states like Florida and Texas leading efforts to eliminate what critics describe as taxpayer-funded ideological indoctrination in education.
Friday’s court win signals that the Trump administration can continue reshaping federal agencies and regulatory bodies, fulfilling promises to rein in entities critics claim have operated beyond accountability.
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Author: Anthony Gonzalez
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