NCUA Boardroom. Credit/NCUA
A federal judge on Tuesday afternoon ruled that President Donald Trump acted unlawfully in removing NCUA Board Members Todd Harper and Tanya Otsuka, ordering their immediate reinstatement and reaffirming Congress’s intent to shield the agency from political interference.
U.S. District Judge Amir H. Ali’s 27-page opinion declared the terminations invalid, writing: “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.” The ruling bars NCUA leadership from denying Harper and Otsuka access to agency resources and requires the Board to allow them to resume their official duties.
The decision followed an April 2025 action by President Trump, who abruptly terminated both board members via email without cause. The administration argued that the President retains at-will removal authority over NCUA Board members, a position the court firmly rejected.
Harper, who had served as Board chair since 2021 until his removal, praised the ruling as a victory for credit union members and the agency’s integrity.
“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 National Credit Union Administration to protect their rights and insure their deposits,” Harper said in a statement. “It’s also a win for all credit unions by maintaining the agency’s future independence.”
Harper added he is eager to return to the agency: “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.”
Fellow Board Member Tanya Otsuka, who was confirmed in 2024, echoed that sentiment. “The court's decision is a victory for the rule of law and the millions of people who use credit unions,” Otsuka said. “I look forward to getting back to work to make sure we have a safe and resilient financial system.”
Their attorney, Vincent Levy, a partner at Holwell Shuster & Goldberg LLP, emphasized the broader significance of the case. “The Court’s decision today vindicates Congress’s judgment that the independence of financial regulators like the NCUA Board is necessary to ensure the stability of our financial markets,” Levy said.
In his opinion, Judge Ali drew comparisons between the NCUA and other independent financial regulators such as the Federal Reserve and FDIC, noting that allowing a President to remove board members at will would undermine the agencies' critical oversight roles. He found that Harper and Otsuka were entitled not only to declaratory relief but to full reinstatement, writing that reinstatement was “appropriate and necessary to prevent further unlawful obstruction of their official duties.”
The decision could have implications for other independent agency appointments and removals, particularly in the financial regulatory space.
For now, it returns the NCUA Board to full strength as its next meeting is scheduled for this Thursday.
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