Judge blocks layoffs at Consumer Financial Protection Bureau
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President Donald Trump speaks with reporters in the Oval Office at the White House, Tuesday, Feb. 11, 2025, in Washington, D.C. (Photo/Alex Brandon).

On Thursday, a federal judge rejected a request by the Trump administration to delay proceedings in a case concerning government spending freezes, which is linked to the ongoing government shutdown.

This case, initiated by Rhode Island and a group of other states, challenges attempts to cut funding and reduce the activities of three agencies that manage libraries, business development, and mediation services. The details are outlined in a 58-page complaint filed earlier this year.

“The states count on [these three agencies] to support their public libraries and museums, help state organizations provide contracting opportunities for disadvantaged individuals, and resolve public-sector labor disputes involving state entities,” the lawsuit states. “This abrupt halt in agency operations, after decades of collaboration, risks hundreds of millions in grant funding vital to the states, and threatens library programs, economic opportunities, and commerce nationwide.”

In May, Chief Judge John J. McConnell, Jr., appointed by Barack Obama, enforced a preliminary injunction to prevent the Trump administration from proceeding with the funding cuts. This order required agency officials to rehire essential staff and contractors, distribute already-allocated grants, and submit regular compliance reports to the court.

Despite this, the Department of Justice (DOJ) attorneys have repeatedly tried to diminish the injunction’s impact, but each attempt has been unsuccessful. An appeal is currently with the U.S. Court of Appeals for the First Circuit awaiting a decision; meanwhile, a motion to halt the injunction during the appeal was promptly denied by Judge McConnell, and another motion with the appellate court was dismissed in September.

Meanwhile, the plaintiffs have updated their complaint, the parties have agreed on a timetable for summary judgment motions, and the court continues to require ongoing updates on the government’s actions.

Now, the DOJ wants to put the kibosh on the schedule it previously agreed to – due to the incipient government shutdown, according to a motion for stay in light of lapse of appropriations filed on Wednesday.

“At the end of the day on September 30, 2025, the appropriations act that had been funding the Department of Justice expired and those appropriations to the Department lapsed,” the motion reads. “The same is true for the majority of other Executive agencies, including the Defendant Agencies. The Department of Justice does not know when such funding will be restored by Congress.”

The government’s filing goes on to say that DOJ attorneys and other employees “are prohibited from working, even on a voluntary basis, except in very limited circumstances.”

“Therefore, although we greatly regret any disruption caused to the Court and the other litigants, the Government hereby moves for a stay of the briefing schedule in this case until Department of Justice attorneys are permitted to resume their usual civil litigation functions,” the motion concludes.

McConnell, however, was not having it.

In a terse, one-paragraph order, the court rubbished the notion the government should or even could be allowed to pause case work.

“The Court is required to continue its constitutional functions, and therefore the Motion to Stay is DENIED,” the judge observed “Department of Justice contingency plan states: ‘If a court denies such a request [to stay or continue] and orders a case to continue, the Government will comply with the court’s order, which would constitute express legal authorization for the activity to continue.'”

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