A district court handed the Trump administration a legal victory on Friday by overturning a previous injunction that had blocked its attempt to dismantle the Consumer Financial Protection Bureau (CFPB). President Trump had dismissed CFPB Director Rohit Chopra on February 1 and appointed Acting Director Russell Vought, who ordered the agency’s closure. This prompted a lawsuit from the National Treasury Employees Union and other plaintiffs.
In March, U.S. District Judge Amy Berman Jackson issued a preliminary injunction halting the administration’s actions. However, the U.S. Court of Appeals for the D.C. Circuit has now vacated that injunction, allowing the administration to proceed. The CFPB, created in 2010 under the Dodd-Frank Act, is funded by the Federal Reserve and operates independently of congressional budget oversight. Critics have long claimed the agency lacks transparency and accountability.
The administration’s efforts to restructure the CFPB come amid ongoing criticism of its financial practices and independence. In past years, the agency faced scrutiny for allegedly channeling funds toward politically affiliated organizations and operating without adequate congressional oversight. A 2022 Fifth Circuit ruling further questioned the legality of its funding structure.
In a separate case, another federal judge upheld Alabama’s law restricting diversity, equity, and inclusion (DEI) programs in public schools and universities. The law, enacted in October, prohibits institutions from promoting so-called “divisive concepts,” such as collective racial guilt. Professors and students at the University of Alabama challenged the measure, arguing it violated their free speech rights.
U.S. District Judge David Proctor rejected their request for a preliminary injunction, stating the law does not stifle academic freedom if controversial subjects are taught objectively. The decision aligns with a broader national movement in states like Florida and Texas aimed at curbing DEI initiatives in publicly funded education.
