The bureau is entangled in a lawsuit that alleges the agency authorized DOGE employees to access computer systems containing sensitive information.

The Trump administration is prohibited from firing more than 1,400 employees at the consumer agency, for now. The next hearing on the case is set for April 29.

The new preliminary injunction allows for the Trump administration to fire CFPB employees and issue a reduction-in-force to employees, as long as the administration abides by certain provisions.

An appeals court judge appeared to favor of authorizing a limited preliminary injunction against the Trump administration in a lawsuit brought by the National Treasury Employees Union.

Jonathan McKernan, nominee for CFPB director, said he thought former CFPB Director Rohit Chopra was “on to something” by focusing on data collection issues.

Judge Amy Berman Jackson said the evidence in the lawsuit makes it clear that the Trump administration has no intent of operating the CFPB at all.

The move could set a dangerous precedent, according to Adam Rust, director of financial services at the Consumer Federation of America.

The preliminary injunction only applies to workers who live or work in Washington, DC, and the 19 states that sued the Trump administration over the mass layoffs of probationary employees at 18 federal agencies.

FHFA directed the GSEs to end their SPCPs, prompting renewed concerns that the Trump administration could take further actions to limit special purpose credit programs in the mortgage market.

Terminated federal probationary employees will soon be offered their jobs back if they live or work in Washington, DC or one of the 19 states that sued the Trump administration.