The U.S. Court of Appeals for the D.C. Circuit has ruled that the Trump administration can continue laying off employees from the Consumer Financial Protection Bureau (CFPB). In a 2-1 decision, the court stated that lower court lacked jurisdiction, and the case must follow the procedures outlined in the Civil Service Reform Act. Approximately 1,400 staffers received layoff notices, while about 200 remain employed. Judge Nina Pillard dissented, expressing concern over the agency's continued existence under unilateral presidential authority. The CFPB was established after the 2008 financial crisis to protect consumers and regulate financial products and services.
The U.S. Court of Appeals for the D.C. Circuit ruled 2-1 that the Trump administration may continue its attempt to lay off the vast majority of CFPB employees.
Judge Gregory Katsas stated, "We hold that the district court lacked jurisdiction to consider the claims predicated on loss of employment, which must proceed through the specialized-review scheme established in the Civil Service Reform Act."
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