Removed NCUA Board members take next legal step

Dismissed NCUA board members Todd Harper and Tanya Otsuka filed their opposition reply to the Department of Justice’s (DOJ) cross-motion for summary judgment on Monday, arguing their removal violates a federal statute. The two 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 the legal filing, Harper and Otsuka argue:

• Their removal ignores the “plain text” of the 1978 restructuring of the NCUA that replaced a single administrator with a three-member board; and
• The restrictions on removing members of the NCUA board (and other agencies led by an independent, multi-member board) are constitutional, and the government has failed to show why these restrictions should be removed.

They are asking for an injunction to prevent the removal of board members and ensure they can “complete their term without hindrance, and with all the authorities and benefits attendant thereto.”

The DOJ—on behalf of the NCUA—previously argued the president can remove NCUA board members at will because the Federal Credit Union Act does not impose any removal restrictions.

The government’s reply in support of any cross-motion is due by May 23.

America’s Credit Unions is closely monitoring the challenge and continues to support 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.