U.S. Court of Appeals for the Federal Circuit in Washington, D.C. Credit: Michael A. Scarcella/ALM
The Trump administration on Friday filed its opening brief in the federal appeals case over the removal of NCUA Board Members Todd Harper and Tanya Otsuka, asserting the President acted within his constitutional authority when he ousted both Democratic appointees in April.
The 49-page brief, submitted to the U.S. Court of Appeals for the D.C. Circuit, argued that the President has the power to remove principal officers at will and that no statute limits that authority for NCUA Board Members. The Department of Justice sharply criticized a July ruling by U.S. District Judge Amir Ali, which reinstated Harper and Otsuka and held that they could only be removed “for cause.”
“There is no statutory restriction on the President’s authority to remove these principal officers,” the brief stated, citing Supreme Court precedent including Seila Law v. CFPB and Myers v. United States. DOJ attorneys argued that the NCUA wields “substantial executive power," including enforcement, rulemaking and conservatorship functions, and thus falls squarely within the President’s direct oversight.
The administration also challenged the district court’s remedy, calling it an unconstitutional judicial intrusion into executive branch authority. “The court’s order amounts to de jure reinstatement beyond the equitable authority of the court,” the brief said.
A ruling in favor of the administration could upend long-standing interpretations of agency independence, and would likely remove Harper and Otsuka from the NCUA Board permanently. A final decision is expected in the coming months.
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