Judge rules dismissed FTC commissioner must be reinstated

A federal judge’s decision to reinstate Federal Trade Commission (FTC) Commissioner Rebecca Kelly Slaughter after her dismissal by President Donald Trump may shed light on the future of dismissed NCUA board members Todd Harper and Tanya Otsuka. The judge found Trump’s dismissal of Slaughter violates both the FTC Act and the 1935 U.S. Supreme Court precedent that Harper and Otsuka say provides precedent for limiting the president’s removal authority.

“While the court's analysis in the Slaughter case may be relevant and could be helpful for Board members Harper and Otsuka, the decision will be appealed by the Trump Administration and could work its way up to the Supreme Court, along with another case currently before the D.C. Circuit challenging the removal of NLRB officials. It is too early to say how these cases may impact the ultimate outcome of the Harper v. Bessent case,” said America’s Credit Unions Chief Advocacy Officer Carrie Hunt. “There is one clear point of distinction to raise: Humphrey’s Executor, the case that tends to be the most relevant judicial precedent, was also about the removal of a FTC commissioner, and the FTC Act only allows removal for ‘inefficiency, neglect of duty, or malfeasance in office.’  With the NCUA, the Federal Credit Union Act is silent on removal altogether.  

“The court will need to address this distinction in any decision it renders. America’s Credit Unions strongly supports a separate and strong regulator for credit unions, run by a bipartisan board, and will continue to advocate for NCUA’s independence from other banking agencies,” Hunt added.

Trump dismissed Harper and Otsuka in April, and they are seeking an injunction reinstating them to the NCUA Board and nullifying any actions taken with Chairman Kyle Hauptman as the sole board member.

The U.S. District Court for the District of Columbia heard arguments June 12 from Harper, Otsuka, and the Department of Justice on behalf of the NCUA. Both parties have filed motions for summary judgment.