Amicus Brief: The Destruction of the CFPB Would Inflict Immeasurable Harm to Financially Vulnerable Americans and the Broader U.S. Economy
May 9, 2025 | WASHINGTON, D.C. — An amicus brief filed today in the U.S. Court of Appeals for the District of Columbia Circuit says the Administration’s attempt to dismantle the Consumer Financial Protection Bureau (CFPB) is “an unconstitutional power grab” that will inflict enormous damage on ordinary Americans and the U.S. economy if the agency is shuttered. The brief—filed by the Center for Consumer Law & Economic Justice at UC Berkeley, Tzedek DC, and the Student Borrower Protection Center—also includes 39 state, local, and national organizations across the country that rely on the CFPB in their work to protect consumers.
A copy of the amicus curiae brief is available here: https://protectborrowers.org/wp-content/uploads/2025/05/NTEU-v-Vought-Nonprofit-Amicus.pdf
The brief argues that the earlier order from U.S. District Judge Amy Berman Jackson that stopped the Administration from shutting down the CFPB should be upheld. In February, the incoming Administration moved to shutter the CFPB – firing staff, stopping work, and closing offices. In response, the union representing staff at the CFPB and several other plaintiffs filed a lawsuit in federal court claiming that the Administration had acted illegally. After extensive hearings in March, Judge Jackson found that “[t]hese actions were taken in complete disregard for the decision Congress made 15 years ago, which was spurred by the devastating financial crisis of 2008 […] that the agency must exist and that it must perform specific functions to protect the borrowing public.” Because the Administration had acted unlawfully in shuttering the CFPB, Judge Jackson issued an order prohibiting the closure of the Bureau at least until the lawsuit is resolved. The amicus brief filed today provides support for Judge Jackson’s order.
Amici note that the “balance of harms” and the “public interest” – two crucial factors in determining whether a preliminary injunction is appropriate – weigh heavily in the plaintiffs’ favor.
As the brief observes:
“[Defendants’] own affidavits state that they barred employees from entering the building, terminated contracts, relinquished funding, and instigated mass layoffs […] Neither the Dodd-Frank Act nor any other source of federal law gives Defendants the authority to shutter a congressionally constituted agency without Congress’s involvement and to render that agency incapable of fulfilling its statutory mandates. […] This Court should treat Defendants’ actions as what they were: a unilateral attempt by the executive branch to delete the nation’s top financial watchdog.”
Using stories of individuals and families helped by the Bureau, the brief also explains the CFPB’s essential role in monitoring the consumer financial sector and enforcing the law. The brief notes that certain populations that are often targeted with unfair and deceptive practices––service members, veterans, and older adults––were specifically and expressly protected in the Dodd-Frank Act. Disabling the CFPB would put millions of Americans in greater danger of financial harm and abuse.
Further Reading
SBPC statement on district court action to stop illegal mass firings at the CFPB: Federal Judge Halts Musk Minion From Running an Illegal and Reckless CFPB Staff Purge
Former senior CFPB officials and SBPC statement on CFPB RIF announcement: Trump Administration Defies Federal Appeals Court, Attempts Illegal Mass Firing at Federal Consumer Watchdog
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About Student Borrower Protection Center
Student Borrower Protection Center (SBPC) is a nonprofit organization focused on eliminating the burden of student debt for millions of Americans. We engage in advocacy, policymaking, and litigation strategy to rein in industry abuses, protect borrowers’ rights, and advance racial and economic justice.
Learn more at protectborrowers.org or follow SBPC on Twitter @theSBPC.
About the UC Berkeley Center for Consumer Law & Economic Justice
The UC Berkeley Center for Consumer Law & Economic Justice works to create a society where economic security and opportunity are available to all.
About Tzedec DC
Drawing from the Jewish teachings of “Tzedek, tzedek tirdof,” or “Justice, justice you shall pursue,” Tzedek DC’s mission is to safeguard the legal rights and financial health of DC residents with low incomes dealing with the often devastating consequences of abusive debt collection practices and other consumer related issues. www.tzedekdc.org