Court consideration of CFPB RIF plan delayed

A federal court’s consideration of the Consumer Financial Protection Bureau’s plan to lay off employees is temporarily delayed pending the nomination of a new director. More than a year ago, the National Treasury Employees Union sued the CFPB’s Acting Director Russell Vought and others, seeking to halt the rushed attempt to mass fire employees and close the bureau down. In March, the bureau adopted a reduction-in-force plan and presented it to the district court as part of the litigation.

With the recently announced formal nomination for a CFPB director, the federal district court and the parties have agreed to temporarily pause proceedings on the RIF plan. The parties agreed that if confirmed, the nominee Brian Johnson “should be given the opportunity to review the 2026 RIF Plan and decide whether he would like to pursue it.” If he is not confirmed by early January, they will proceed with consideration of the plan in court.