A federal court yesterday ruled that the firings of two former National Credit Union Administration board members by President Trump were unlawful and therefore both individuals can remain on the board. The Department of Justice filed notice today that it plans to appeal the ruling.
In May, Trump removed Democrats Todd Harper and Tanya Otsuka from the NCUA board despite both having several years left in their terms. Their removal from the three-person board left Chairman Kyle Hauptman the sole member. The two officials decried the decision at the time, saying the president’s actions eroded the independence of the agency, and sued in U.S. District Court for D.C. to keep their positions.
District Judge Amir Ali sided with the plaintiffs, ruling that Congress set the conditions under which NCUA board members could be removed and that Trump did not meet those conditions. Ali also enjoined the Trump administration from impeding Harper and Otsuka from being able to do their work as board members.
The case also touched on whether Trump could fire members of the Federal Reserve board, which is also independent. The administration argued in court filings that it does not have a formal position on that subject. “The overlap in powers wielded by the NCUA board and the Federal Reserve, and their common role as financial regulators, supports the conclusion that Congress can insulate NCUA board members from at-will removal,” Ali wrote.
