Reaction has been mixed from organizations over the U.S. Supreme Court ruling Monday that expanded presidential authority to remove members of independent federal agencies, including the NCUA.
"Today's Supreme Court decision allowing the President to fire federal regulators at will, including NCUA Board members, will undermine critical functions and independence of federal regulatory agencies," Inclusiv President/CEO Cathie Mahon said. "The bipartisan nature of the NCUA board ensures consistency in oversight and healthy debate as Board members with a range of views negotiate the agency's policy priorities without being beholden to the individuals or parties that happened to be in office."
Mahon noted presidents will be empowered to shape federal agency boards to align with their administration's views.
"This will create a constant environment of uncertainty as agency policy and practices change with administrations, which will undermine the strength of the credit union system as small and under-resourced institutions scramble to keep up with shifting requirements every four years," she said. "It is vital that the NCUA be led by people who are knowledgeable about the credit union system and accountable to the people and communities served by our institutions."
Two of the nation's largest credit union trade organizations, while recognizing the Supreme Court's decision, said they are looking forward to working with the NCUA.
California's Credit Unions and Nevada's Credit Unions acknowledged Monday's Supreme Court decision and its implications for the NCUA while remaining dedicated to collaborating productively with the federal agency.
"Credit unions rely on a regulatory framework that is consistent, transparent and capable of responding to an evolving financial services landscape," Lisa Quaranta, SVP of regulatory advocacy for California's Credit Unions and Nevada's Credit Unions, said. "The Leagues remain committed to working constructively with the NCUA, regardless of the outcome, to support a safe, sound and innovative credit union system."
The GoWest Credit Union Association, which represents credit unions in Arizona, Colorado, Idaho, Oregon, Washington and Wyoming, also acknowledged the Supreme Court's decision, noting that the NCUA's mission will ensure the safety and soundness of credit unions across the country that are providing affordable financial services and access to capital to the millions of Americans who rely on them as trusted financial partners.
"We look forward to the administration's and Congress' efforts to advance nominees through the confirmation process in a timely manner and achieve the seating of a full three-member NCUA Board," GoWest Credit Union Association President/CEO Troy Stang said.
Other organizations, such as the New Civil Liberties Alliance (NCLA), a nonprofit legal organization based in Arlington, Va., that often challenges what it views as unlawful power by federal administrative agencies, praised the Supreme Court's decision.
"The Supreme Court's decision today in Slaughter represents a huge victory for our constitutional republic," Margot Cleveland, Of Counsel of the NCLA, stated. "By expressly overturning Humphrey's Executor and returning to a faithful interpretation of separation of powers, the Court's decision in Slaughter ensures that federal agencies remain answerable to the Executive – and in turn the American people who elected the President."
Last October, the NCLA filed an amicus curiae (friend of the court) brief urging the full panel of the 5th U.S. Circuit Court of Appeals in New Orleans to rehear the case of former Edinburg Teachers Credit Union CEO Jeffrey Moats, who challenged the constitutionality of the NCUA's administrative authority. The full panel of the appeals court declined to rehear Moats' case.
A three-judge panel from the 5th U.S. Circuit Court of Appeals unanimously upheld a lower court ruling in August 2025 that allowed the NCUA to proceed with administrative charges against Moats.
The federal agency accused Moats of alleged bank fraud, embezzlement, obstruction of an examination and falsifying documents during his tenure as CEO of the Edinburg, Texas-based credit union. The federal agency is seeking restitution of at least $4 million to the credit union and a civil money penalty of $1 million.
Moats' case has remained on the docket of the Office of Financial Institution Adjudication.
Advocacy organization Public Citizen lambasted the Supreme Court ruling.
"Having stripped most independent agencies of their independence, President Trump is already politicizing and weaponizing them, including agencies such as the FTC and the Federal Communications Commission (FCC), to the detriment of everyday Americans," Robert Weissman, co-president of Public Citizen in Washington, D.C., said.
The Trump v. Slaughter case decision could effectively determine the fate of former NCUA Board Members Todd Harper and Tanya Otsuka. The ruling had immediate implications for Harper and Otsuka, who sued the Trump administration after being removed from the NCUA in April 2025. Their lawsuit argued that NCUA board members are protected by the same legal principles that historically governed other independent regulatory agencies.
The Trump v. Slaugther case centered on the firing of former Federal Trade Commission Commissioner Rebecca Slaughter and whether Congress can shield members of independent agencies from removal without cause.
The Court's decision weakened decades of precedent that had insulated independent regulators from direct presidential control. Legal observers said they believe the ruling substantially strengthens the administration's position in the ongoing appeal and makes it increasingly unlikely that Harper and Otsuka will be reinstated.
The decision could also reshape the NCUA itself, giving future presidents greater authority over the composition of the agency's board and potentially reducing the independence Congress intended when it established the modern three-member board structure.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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