Controversially reinstated NCUA board members face continued inactivity
In a significant development, U.S. District Judge Amir H. Ali has ruled that the removal of Todd Harper and Tanya Otsuka, members of the National Credit Union Administration (NCUA) board, by President Donald Trump was unlawful [2][3][1]. The judge stated that the administration's arguments for their firings were "unavailing" [1].
Following this ruling, Harper and Otsuka were reinstated to their positions on the NCUA board and participated in the July 24, 2025 board meeting [1][2]. However, the Trump administration has appealed Judge Ali’s decision and filed a motion for an emergency stay. Harper and Otsuka were required to respond by August 4, 2025, and the administration was to file any reply by August 11, 2025 [1].
The legal challenge was originally filed in April 2025 in the U.S. District Court for the District of Columbia, naming President Trump and other officials as defendants. The plaintiffs argued their removal violated the Administrative Procedure Act and the principles of separation of powers, as they were only removable for cause under the NCUA statute [4].
Meanwhile, the Supreme Court exempted the Federal Reserve from its order granting the Trump administration's emergency request to uphold the firing of officials at certain boards, citing the Fed's unique structure [5]. This decision did not address the case involving Harper and Otsuka.
America's Credit Unions CEO Jim Nussle stated that the trade group "will continue to closely monitor the appeals proceedings as they move forward." Nussle also expressed support for a fully staffed, three-member NCUA board [6].
The NCUA board, following the firing of Harper and Otsuka, was left with only Republican Chair Kyle Hauptman. The reinstatement of Harper and Otsuka has brought balance back to the board, with two Democrats and one Republican member [1].
The lawsuit filed by Harper and Otsuka against Trump was in response to their firing in April. The case has sparked discussions about the separation of powers and the role of Congress in appointing and removing board members [3].
As of early August 2025, Harper and Otsuka have successfully been reinstated following a court decision declaring their firing illegal, but the legal fight continues as the administration challenges this ruling on appeal [1][2][3][4]. The outcome of this case could set a precedent for future removals of board members.
The ongoing legal battle surrounding the reinstatement of Todd Harper and Tanya Otsuka, former members of the National Credit Union Administration (NCUA) board, continues to unfold, with politics and policy-and-legislation at the center of the discussions due to the separation of powers and the Administrative Procedure Act being central to the case. General news outlets across the nation have been covering this particular piece of general-news, as the Supreme Court's decisions and court rulings impact the composition of the NCUA board, affecting America's Credit Unions and their members.
