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February 28, 2026court rulingfinancial regulationexecutive authorityseparation of powersadministrative lawcourtsregulatory agenciesexecutive power

CFPB shutdown battle continues as D.C. Circuit weighs ruling

Four days after the February 24 en banc hearing, the CFPB shutdown litigation remained unresolved as the full D.C. Circuit deliberated, with experts predicting the union would prevail given the court's composition and the case likely heading to the Supreme Court. The injunction blocking the layoffs of up to 1,400 CFPB staff remained in place, preserving the bureau's limited operations while the administration continued pressing for authorization to dismantle it. Legal analysts noted the case would test whether executive stop-work orders and funding cuts could serve as a de facto repeal of a statute without congressional action.