Court hears arguments from dismissed NCUA board members, DOJ

The U.S. District Court for the District of Columbia heard arguments from dismissed NCUA board members Todd Harper and Tanya Otsuka, as well as the Department of Justice (DOJ) on behalf of the NCUA Thursday. Both parties have filed motions for summary judgment.

Harper and Otsuka are seeking an injunction reinstating them to the NCUA board and nullifying any actions taken with Chairman Kyle Hauptman as the sole board member. Since Harper and Otsuka were dismissed in April, the board has conducted one meeting with no votes taken.

The DOJ claims the president can remove board members at will and that the Federal Credit Union Act provides no “for cause” removal protections to NCUA Board members.

The court asked questions about the Federal Credit Union Act and its history, the functions of the NCUA Board and how it compares to other agencies, the relevance of recent cases such as Collins v. Yellen (which dealt with the single-director structure of the Federal Housing Finance Agency) and Seila Law LLC v. Consumer Financial Protection Bureau (which dealt with the single director structure of the CFPB), and the 1935 Humphrey’s Executor v. United States decision which Harper and Otsuka claim provides precedent for limiting the president’s removal authority.

A decision is expected soon. The NCUA has cancelled its June board meeting, and the remaining meetings for 2025 are listed as tentative.

America’s Credit Unions Vice President for Policy Engagement and Credit Union Operations Ann Petros attended today’s hearing and provided a summary on LinkedIn. America’s Credit Unions is closely monitoring the proceedings and continues to support an independent NCUA led by a three-person, bipartisan board.