The Social Security Administration (SSA) and the Consumer Financial Protection Bureau (CFPB) are planning major layoffs as part of the Trump administration’s efforts to reduce federal spending.
Despite legal pushback from federal judges who argue that some of these layoffs might be illegal, the agencies are moving forward with their plans.
It remains uncertain whether the courts will be able to slow down this process.
SSA’s Workforce Reduction Plans
On Thursday, the SSA announced its plan for “organizational restructuring” that includes significant workforce cuts.
Although the agency did not specify how many jobs would be affected, reports suggest that up to 50% of its 60,000 employees could be impacted. In a letter to employees, the SSA offered voluntary resignation payments ranging from $15,000 to $25,000.
Additionally, some employees may face “directed reassignments,” which could be involuntary and require retraining.
The SSA did not respond to requests for comment from news outlets. However, the planned workforce reduction has raised concerns about how it will affect the agency’s ability to provide essential services to the public.
CFPB Faces Major Layoffs and Uncertainty
At the CFPB, employees recently attended meetings where agency leaders and members of Elon Musk’s Department of Government Efficiency (DOGE) discussed plans to eliminate nearly all of the CFPB’s 1,700 employees and shut down the agency.
This comes as Jonathan McKernan, Trump’s nominee for CFPB director, stated during his Senate Banking Committee confirmation hearing that he would ensure the agency fulfills its congressional duties if confirmed.
The White House has not commented on these plans. Meanwhile, uncertainty continues as lawsuits and legal challenges question the legality of the layoffs and agency closures.
Legal Pushback and Court Rulings
Federal judges are beginning to rule on the legality of these layoffs. U.S. District Judge William Alsup recently ordered the U.S. Office of Personnel Management (OPM) to withdraw directives that instructed federal agencies to fire probationary employees, stating that the OPM lacks the authority to make such orders.
Although Judge Alsup stopped short of directly prohibiting the agencies from firing employees, he hinted that they should reconsider their actions.
Additionally, the Merit Systems Protection Board (MSPB), an independent federal agency that protects civil service employees from political interference, temporarily reinstated probationary employees from six federal agencies.
The MSPB found “reasonable grounds” to believe that these agencies had engaged in prohibited personnel practices, potentially affecting thousands of laid-off workers.
Read More:
- Social Security Administration Office in Lawton to Close Due to DOGE Cuts!
- Social Security Administration and CFPB Announce Major Workforce Reductions!
Potential Supreme Court Battle
Legal battles surrounding DOGE-tied layoffs and agency closures could eventually reach the Supreme Court. There are concerns that these layoffs violate laws designed to protect civil service employees from partisan influence.
Additionally, DOGE’s efforts to dismantle agencies created by Congress, such as the CFPB and the U.S. Agency for International Development, have raised constitutional questions about the separation of powers.
Congressional Democrats argue that attempts to shut down the CFPB violate both the Dodd-Frank Act—which created the agency—and the Constitution’s principle of separation of powers. They emphasized this stance in an amicus brief filed last Friday.
Uncertain Future for Federal Employees
While the Trump administration is pushing to eliminate these jobs rapidly, the courts are moving at a slower pace.
This delay raises concerns that even if the courts eventually rule the layoffs illegal, many employees might already be affected, and rebuilding the agencies could be a lengthy and challenging process.
The outcome of these legal battles will significantly impact the future of federal employees and the operations of essential government agencies.
As the situation continues to evolve, the affected workers and the public are left in uncertainty.
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