The CFPB asked the D.C. Circuit in early April to allow it to proceed with a new restructuring plan that would reduce the agency to 556 employees — a reduction of more than 50% from current levels — and argued this revised plan moots the lower court injunction that has blocked mass layoffs since 2025. Earlier efforts sought to cut up to 90% of staff.
Notably, the plan would spare the legal division entirely and actually increase the regulations team from 32 to 59 employees, suggesting a continued focus on rulemaking. By contrast, supervision and enforcement would be cut by 78% and 64%, respectively. The agency’s funding authority was already cut nearly 50% as part of Trump’s domestic policy legislation last year, creating additional pressure to reduce headcount by the fourth quarter of 2026.