DOJ, NCUA respond to dismissed NCUA board members’ filing

The Department of Justice—on behalf of the NCUA—filed its reply to dismissed NCUA board members Todd Harper and Tanya Otsuka late Friday. This latest action responds to Harper and Otsuka’s filing at the beginning of last week arguing their removal violates federal statute.

Harper and Otsuka were dismissed by President Donald Trump April 16, and filed a lawsuit April 28 seeking to be reinstated and nullify any agency actions taken with a single board member.

In its latest filing, the government argues:

• Congress has not restricted the president’s authority to remove NCUA board members at will; and
• Any such restrictions would be unconstitutional, as the exception cited by the plaintiffs is narrow and only meant to apply to multi-member expert agencies that do not wield substantive executive power.

It further argues Harper and Otsuka are not entitled to reinstatement or the permanent injunction they seek, as reinstatement exceeds the scope of the federal courts’ equitable powers.

America’s Credit Unions continues to closely monitor the challenge and supports an independent, bipartisan NCUA led by a three-member board. The association has emphasized this position more than 30 times since the board members’ removals last month.