On February 2, the union representing CFPB employees filed an en banc brief in the U.S. Court of Appeals for the D.C. Circuit, urging the court to uphold the district court’s preliminary injunction preventing the executive branch from unilaterally shutting down the CFPB. As previously covered by InfoBytes, the D.C. Circuit granted en banc review and ordered that the injunction remain in effect during the appeal, with oral argument scheduled for February 24.
In its brief, the union argued that the acting director and other defendants engaged in a coordinated effort to eliminate the agency without congressional approval by, among other things, issuing a stop-work order, canceling contracts, closing offices, and initiating mass terminations. The union contended that these actions amounted to “final agency action” under the APA, making them subject to judicial review even though they were not formally documented. The union’s brief further asserted that the shutdown had immediate legal consequences, including halting certain consumer protection activities and disrupting services provided to consumers. The union maintained that federal courts have the authority to enjoin unconstitutional executive actions and that the executive lacks power to abolish an agency established by Congress. The brief requested that the D.C. Circuit keep the injunction in place to preserve the status quo while litigation continues.
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