The U.S. Court of Appeals for the D.C. Circuit ruled that the district court lacked jurisdiction for claims related to loss of employment that must follow the Civil Service Reform Act's review process. Reports indicate that the Consumer Financial Protection Bureau (CFPB) is expected to cut its staff from 1,500 to 200 employees, dramatically reducing its enforcement and supervision divisions. Cuts include reducing the Office of Fair Lending to one employee, with major hits to oversight capabilities. Attorney General Pam Bondi endorsed the ruling, indicating it allows the CFPB to restructure in a lawful manner to serve citizens effectively.
The U.S. Court of Appeals for the D.C. Circuit ruled that the district court did not have jurisdiction to consider claims linked to employment loss, which are governed by the Civil Service Reform Act.
The CFPB plans to implement significant layoffs, cutting 1,300 employees, leaving only 200 to manage essential functions, which impacts enforcement and supervision personnel the most.
Specific divisions such as the Office of Fair Lending and Equal Opportunity could be greatly affected, potentially reducing its staff to just one employee.
Attorney General Pam Bondi expressed approval of the decision, stating that the CFPB can now adjust its size in accordance with the law to better serve the public.
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