The Ins and Outs of CPSC: Firings and Reinstatements, Dueling Budgets, and Maybe/Maybe Not Reductions in Force

Since we published our April 21 blog on the then-leaked draft proposal to eliminate the U.S. Consumer Product Safety Commission (CPSC or Commission), fold its functions into the U.S. Department of Health and Human Services (DHHS), and cut the spending on CPSC’s work by about $15 million (presumably offset by administrative efficiencies from being under DHHS’ umbrella), there has been no shortage of developments in CPSC’s leadership and potential future funding and structure.

Whose Budget Is It, Anyway?

On May 8, 2025, President Trump fired all three of the Democrats on the Commission — Alexander Hoehn-Saric, Richard Trumka, Jr., and Mary Boyle.

On May 30, 2025, the then two-member Commission — Acting Chairman Peter Feldman and Commissioner Douglas Dziak — sent a Performance Budget Request to Congress that reflected the reorganization, asking for $135 million, the same number reflected in the leaked draft. DHHS’ budget request also reflects the transfer and the same $135 million funding level. CPSC’s request did note that the transfer of CPSC’s functions would need an act of Congress to amend the Consumer Product Safety Act (CPSA), stating that the change would be “[c]ontingent upon enactment of authorizing legislation.”

However, the three Democratic commissioners sued to have their firings declared unlawful under the CPSA’s removal protections (which provide that the president may remove commissioners “for neglect of duty or malfeasance in office but for no other cause”), and, on June 13, 2025, the U.S. District Court for the District of Maryland granted the trio summary judgment, ordering their reinstatement.

On June 17, 2025, the reinstated Hoehn-Saric, Trumka, and Boyle quickly voted (with Feldman and Dziak abstaining) to issue a policy that undid much of what the two-member Commission had done, declaring those actions “null and void, unless otherwise specified” by the now-restored five-member body. That policy included setting aside the May 30, 2025 budget request and directing agency staff to prepare a new request. The policy also stated that any changes prompted by President Trump’s Executive Order “Establishing and Implementing the President’s ‘Department of Government Efficiency’ Cost Efficiency Initiative” were set aside, and that any Reductions in Force (RIFs) could take place only with “a majority vote of the Commission.”

On June 26, 2025, the Commission — again by a 3-0-2 vote — did issue a new budget request, one that does not reflect any transfer of CPSC’s functions and that seeks a roughly $33 million increase in the agency’s budget, a total appropriation of $183.05 million. Commissioners Hoehn-Saric, Trumka, and Boyle issued a joint statement along with the vote, writing that their “request rejects the Trump Administration’s proposal to eliminate the CPSC,” noting that “[w]hat was true five decades ago [when the CPSC was created in 1972] is even more relevant today [and that b]urying [CPSC’s] mission within the much-larger HHS, which has broad jurisdiction over the American health care system, would be a disservice to the public and the goal of improving product safety.” Congress is now faced with two irreconcilable budget requests from the CPSC.

RIFfing on Safety?

Also on June 26, by another 3-0-2 vote, the Commission adopted another policy, this one “Reiterating and Strengthening the Commission Policy Regarding Reductions in Force” that had been reflected in the June 17 policy. This June 26 policy is more explicit and “[f]or avoidance of doubt … hereby prohibits the use of any agency funds, including staff time and resources, to take any action toward [RIFs]” of CPSC staff absent a vote of the full Commission.” The new policy also directs the immediate withdrawal of any RIFs “issued in the past 60 days” and notes that it “applies individually to the Chair under [the CPSA] as well as to the Executive Director and other responsible staff, including the Office of the Executive Director, the Office of Human Resources, and the Office of the Chief Financial Officer.”

Apparently, this “Reiterating” policy had been occasioned by more than mere hypotheticals, as Commissioner Hoehn-Saric issued a statement on June 27, 2025 in which he wrote that he “learned that contrary to Commission policy, the Acting Chairman unilaterally decided to issue RIF notifications to several staff members.” Commissioner Hoehn- Saric’s statement did not include further information about the recipients of the RIF notifications.  

Our Consumer Product Safety team will be keeping watch for any further developments.

For questions about CPSC policy or about compliance with the CPSA, including timely reporting and recalls under Section 15(b) of the CPSA, or with other product safety matters, please reach out to the authors of this post or any of their colleagues on Arnold & Porter’s Consumer Product Safety team.

© Arnold & Porter Kaye Scholer LLP 2025 All Rights Reserved. This Blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.