Federal Judge Orders Reinstatement of Former NCUA Board Members

A federal judge has ordered the immediate reinstatement of former NCUA Board Members Todd Harper and Tanya Otsuka, ruling that their removal in April by the Trump Administration was unlawful. The administration has filed an appeal and has requested a stay. The case is now before the U.S. Court of Appeals for the D.C. Circuit.

In a 27-page ruling issued Tuesday afternoon, U.S. District Judge Amir H. Ali stated that "the text and history of the NCUA statute, along with the structure and function of the NCUA board, confirm Congress restricted the President's power to remove Board members."

Harper and Otsuka filed a lawsuit seeking reinstatement, arguing their termination violated federal law.

Following the ruling, Harper posted on LinkedIn, ""Today's ruling in favor of immediately restoring the Board to its full capacity is a real win for the 143 million Americans who rely on the NCUA to protect their consumer rights and insure their share deposits. It's also a win for all credit unions by maintaining the agency's future independence. I look forward to once again working with my fellow Board members and the outstanding team at the NCUA to ensure our credit union system and our economy remain safe, stable, sound, secure, and fair."

The NCUA's next public board meeting is Thursday.