Two Consumer Financial Protection Bureau employees testified Tuesday that the agency's top officials are moving forward with plans to fire hundreds of workers, even as a federal judge considers whether to block the move, The Hill reported.
Two CFPB employees testified Tuesday that top officials remain committed to a large-scale workforce reduction despite a federal judge's ongoing deliberations on whether to halt the effort.
The Trump administration initially planned to lay off nearly 1,200 CFPB employees in early February before U.S. District Judge Amy Berman Jackson issued an order blocking the mass termination.
However, testimony from agency insiders suggests that the restructuring effort is still in progress.
One CFPB official, Adam Martinez, the agency's chief operating officer, testified over two days that while the agency experienced "chaos," it has since returned to basic operational levels required by law.
Other witnesses, however, described a more dire situation.
"These witnesses said top CFPB officials are moving forward with efforts to completely shutter the agency through a large-scale workforce reduction plan."
Employees have also been denied the opportunity to apply for other government positions during downsizing. Typically, laid-off federal workers are eligible for reassignment to similar roles within the government.
"There would be no competition because there would be no jobs to compete for," said Alex Doe, a CFPB employee allowed to testify under a pseudonym.
Matthew Pfaff, chief of staff for the CFPB's Office of Consumer Response, testified that his office, which handles approximately 350,000 consumer complaints per month, was significantly disrupted when acting CFPB Director Russell Vought issued a stop-work order. Employees were instructed to halt operations, leading to a backlog that Pfaff estimated could take weeks or months to clear.
"Chaotic is generous," Pfaff said. "People have been out of work for three weeks. There was a lot of confusion about what was happening."
During cross-examination, Justice Department attorney Liam Holland questioned Pfaff about failing to alert senior officials that "urgent matters" were left unaddressed. Given the full-scale work stoppage, Pfaff responded that he understood "urgent" to mean issues beyond the agency's typical workload.
The hearing is part of a lawsuit filed by the National Treasury Employees Union and other groups challenging the administration's actions. The plaintiffs have requested a preliminary injunction to prevent further dismantling of the agency while litigation continues.
The administration has denied any plans to abolish the CFPB, citing President Donald Trump's appointment of Jonathan McKernan as the agency's director.
"I want to preserve an agency that could be revived, if necessary," Judge Jackson said. "That doesn't mean it has to be the agency it was, but it has to be something like it is now."
Martinez testified that the Department of Government Efficiency (DOGE)'s arrival at the CFPB last month resembled a "hostile takeover." While acknowledging initial confusion, he suggested that the agency was functioning more smoothly.
"I think there's less confusion today," Martinez said. "I have hope for the future."
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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