Defense and Compliance Attorneys
Source: site
The D.C. Circuit has agreed to have all active judges rehear the CFPB employees’ mass‑firing case, wiping out an earlier decision that had cleared the way for the Trump administration to proceed with large‑scale layoffs at the Bureau.
What the new order does
-
The U.S. Court of Appeals for the D.C. Circuit granted the National Treasury Employees Union’s request for en banc rehearing in National Treasury Employees Union v. CFPB/Vought, a case challenging plans to fire more than 1,400 CFPB employees and sharply curtail the agency’s operations.
-
By granting rehearing en banc, the court vacated (nullified) the divided three‑judge panel’s August 15, 2025 opinion that had dissolved a district‑court injunction and held that most employment‑related claims had to go through the Civil Service Reform Act process.
Immediate practical effect
-
With the panel decision vacated, Judge Amy Berman Jackson’s earlier injunction blocking the planned mass terminations and certain shutdown measures remains in force while the full court reconsiders the case.
-
As a result, the administration is, for now, still barred from implementing its plan to fire up to roughly 90% of CFPB staff and effectively shut down many Bureau functions without further court approval.
What the en banc court will decide
-
The full D.C. Circuit will now decide whether NTEU and other plaintiffs can pursue their separation‑of‑powers and related claims in federal district court, or must rely solely on civil‑service channels for employment‑loss issues.
-
The court is also expected to address whether an administration can, consistent with the Constitution and Dodd‑Frank, use mass layoffs and funding maneuvers to effectively dismantle the CFPB without explicit authorization from Congress.
Timeline and next steps
-
The court has set an expedited schedule: briefing begins with the government’s brief due January 9, 2026, the plaintiffs’ brief due February 2, 2026, and the government’s reply due February 17, 2026.
-
Oral argument before the full D.C. Circuit is scheduled for February 24, 2026, at 2:00 p.m. Eastern, after which the court will issue an en banc decision that will govern what happens next to the CFPB employees and the agency’s future structure and operations.
Upcoming Events
