Fired NCUA board members seek quick ruling on reinstatement

Former National Credit Union Administration board members Todd Harper and Tanya Otsuka are pressing a federal appeals court for a fast ruling on whether they should be reinstated, even as a recent Supreme Court decision appears to have changed the legal landscape around presidential removal powers.

The timing matters. Their request comes after the Supreme Court’s June 29 decision in Trump v. Slaughter, which struck down for-cause removal protections for leaders of independent agencies in a ruling that could undercut the legal basis for their challenge

What happened

Harper and Otsuka were removed from the NCUA board by President Donald Trump in April 2025, then won reinstatement from a federal district judge in July 2025 before the D.C. Circuit quickly stayed that ruling. Since then, the case has remained on appeal, with the two former board members arguing that their removal was unlawful under the statute governing the NCUA.

Their latest move is to seek a prompt appellate ruling rather than letting the case linger, likely because the Supreme Court’s recent agency-removal decision may make further delay less helpful to their position. Banking Dive reported that the pair are asking the appeals court to act swiftly on reinstatement, while CU Times said the broader case now looks increasingly unlikely to succeed.

Why it matters

The NCUA is the primary federal regulator for credit unions, so the composition of its board affects agency leadership, policy direction, and governance stability. When Harper and Otsuka were first removed, the board was left with only one member, raising concerns about quorum and continuity even though the agency said it could continue operating under delegated authority.bankingjournal.

For credit unions and the broader financial-services sector, the case has been more than a personnel dispute. It has become a test of how far presidents can go in reshaping independent agencies, especially after a Supreme Court ruling that appears to broaden removal power while carving out a limited exception for the Federal Reserve.

Legal backdrop

In July 2025, U.S. District Judge Amir Ali ruled that Trump’s removals of Harper and Otsuka were unlawful and ordered them restored to the board immediately. The administration appealed at once and obtained a stay, preventing them from returning while the appeals process continued.

That structure changed in June 2026, when the Supreme Court overruled Humphrey’s Executor and held that Congress generally may not restrict the president’s power to remove officers of independent agencies. Analysts cited by KFI and others said the decision directly affects agencies like the NCUA and could erode the legal foundation for the former board members’ lawsuit.

Industry impact

America’s Credit Unions said in earlier coverage that the dispute is tied to the need for a full, three-person board, while also urging the White House to fill the vacant seats. The group’s position reflects a broader industry preference for agency stability, even amid disagreements over who should serve.

For now, the immediate question is procedural: whether the D.C. Circuit will issue a quick ruling or let the case continue through the normal appellate track. Either way, the combination of the Supreme Court’s ruling and the pending appeal suggests the NCUA board dispute is entering its final stage.