The move continues a recent pattern of withdrawing the bureau from lawsuits under new leadership at the CFPB.

The Trump administration’s planned reduction-in-force would terminate more than 1,400 employees at the bureau, reducing the agency’s workforce to around 200 employees.

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

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.

A judge granted the bureau’s request to withdraw from the 2022 lawsuit, but the case will move forward.

The consumer reporting agency asserted that some of the claims in the lawsuit exceeded their statutes of limitation.

The injunction is in place until the court resolves the lawsuit brought by the NTEU. The Trump administration appealed the order.

New CFPB leadership said the bureau’s investigation into Townstone was not prompted by any actual harm, but by quota-style statistics.

A decision is expected no later than April 1, regarding a potential preliminary injunction that would prevent future mass terminations.