In Washington, a federal judge is currently hearing a case focused on halting the Trump administration’s efforts to dismantle the Consumer Financial Protection Bureau (CFPB). Testimonies have shed light on the internal chaos that ensued within the agency last month after employees were abruptly instructed to cease working.
Adam Martinez, the chief operating officer of the bureau, provided insights into the situation. He reported that following the dismissal of former director Rohit Chopra on February 1st by President Trump and the appointment of a temporary substitute, the agency was forced into a “wind-down mode.” This transition resulted in the immediate suspension of all operations, the cancellation of $100 million worth of contracts, and the termination of 70 employees.
Despite the suspension order still in place, the bureau continues to perform legally obligatory tasks, Martinez testified. When asked about the current workflow of the agency, he cautiously described it as operational but not “normal,” expressing optimism for the future. “I think there’s hope. I have hope for the future,” he remarked, noting that employees are eager to resume their duties.
Martinez’s testimony is set to continue on Tuesday. The hearing, organized by U.S. District Judge Amy Berman Jackson, aims to clarify the actual circumstances within the agency and assess whether the current administration is actively working to dismantle it. Lawyers representing agency staff seek a judicial order preventing any mass layoffs. Judge Jackson suggested a decision might be announced later this month.
During the hearing, the judge acknowledged receiving conflicting accounts about the situation on the ground since Trump appointed budget chief Russell Vought as the acting director of the bureau.
Martinez described the current leadership’s approach as more measured compared to the initial chaos following the abrupt changes in February when officials from the Department of Government Efficiency, led by Elon Musk, descended on the bureau’s headquarters in Washington.
“We had adults at the table that were able to talk through these issues,” Martinez explained. However, he recounted unsettling incidents, including the unexpected visit of a single DOGE official, Christopher Young, who arrived as engineers supposed to accompany him stayed away, fearing they were being followed.
Martinez described an audit-like process conducted by DOGE representatives, who sought and gained detailed access to the agency’s systems and operational data. Particular moments of contention arose, such as employees circling a conference room used by DOGE officials, some taking photos and asking probing questions, leading to heightened tensions necessitating the presence of security personnel.
The CFPB, tasked with consumer protection against financial malpractice, was established post the 2008 financial crisis by Congress. It handles consumer grievances and scrutinizes banks, safeguarding student loan borrowers among other responsibilities.
In response to these chaotic changes, the National Treasury Employees Union, representing over 1,000 bureau workers, filed a lawsuit on February 9th, challenging the legality of such sweeping dismissals. Their argument rests on the premise that the Trump administration lacks the constitutional authority to disband a congressionally-mandated agency. Government representatives counter the suit’s premise, claiming it wrongly seeks judicial oversight of the CFPB’s daily operations.
During the testimony, Martinez noted that many canceled contracts have now been reactivated. He was questioned by the judge about whether the contract cancellations were executed hastily. Martinez affirmed this sentiment, saying, “That’s what it felt like.”
