Federal judge reinstates NCUA board members Harper, Otsuka

UPDATE - 7/23, 9:30 a.m. Eastern: The Trump administration has appealed this judge's ruling and requested a stay. The court must decide whether to grant the stay.

A federal judge has ordered the immediate reinstatement of former NCUA board members Todd Harper and Tanya Otsuka.  In a decision issued late Tuesday afternoon, U.S. District Judge Amir H. Ali ruled that President Donald Trump acted unlawfully when he removed the two Democratic appointees in April.  

Harper and Otsuka filed a lawsuit, arguing their removal violated federal statute. On behalf of the NCUA, the Department of Justice argued the president has the authority to remove board members.

In the 27-page ruling, Ali wrote that “the text and history of the NCUA statute, along with the structure and function of the NCUA board, confirm Congress restricted the President’s power to remove Board members.”  

America’s Credit Unions President/CEO Jim Nussle released this statement following the decision:

"Judge Amir Ali deemed that Todd Harper and Tanya Otsuka’s removal as independent agency members was unlawful and ordered that they be reinstated, similar to other recent decisions in the U.S. District Court of the District of Columbia. America’s Credit Unions has been consistent in our support of an independent, three-person board at the NCUA, and we will know soon whether this matter will be stayed and appealed or if the NCUA will return to business as usual."  

Late Monday, a U.S. Appeals Court temporarily blocked a court order that would have allowed Federal Trade Commissioner Rebecca Slaughter, a Democratic appointee, to resume her role.

America’s Credit Unions has continued to work with the NCUA to advance, empower, and protect credit unions throughout the process.