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Democratic AGs Cheer Federal Court’s Halt of CFPB Dismantling

  • A U.S. District Court has granted a preliminary injunction in National Treasury Employees Union v. Vought preventing the CFPB’s Acting Director from taking further steps to dismantle the agency.
  • In an amicus brief supporting the injunction, 23 Democratic AGs argued that the administration’s actions—including suspending agency operations and refusing to draw funds from the Federal Reserve—are causing irreparable harm by undermining consumer protections, leaving large banks without oversight, and shifting the enforcement burden onto state agencies.
  • The court found that the plaintiffs are likely to succeed on the merits and had demonstrated irreparable harm, justifying the injunction.
  • We previously reported on the AGs’ amicus brief filed in a related case also challenging the agency’s defunding.