Federal dismissals may be being paved via the precedent set by recent dismissals at the National Credit Union Administration (NCUA), as per the NCUA's Chairman, Todd Harper.
In a surprising turn of events, former National Credit Union Administration (NCUA) Chair Todd Harper and fellow Democratic board member Tanya Otsuka have been reinstated to their positions after a federal court ruling declared their firing by President Donald Trump as illegal.
The ruling, made on July 22, 2025, stated that the two board members could only be removed "for cause" under the NCUA statute, a requirement that was not met in their case. Consequently, Harper and Otsuka were reinstated and participated in an NCUA board meeting on July 24, 2025.
However, the reinstatement was short-lived as an appeals court granted the Trump administration’s request to pause the reinstatement, placing it on hold pending further judicial review. This means Harper and Otsuka were temporarily sidelined again as the legal process continues.
The absence of Harper and Otsuka from the board for several months had a significant impact on the NCUA’s ability to perform its functions. With Chairman Kyle Hauptman as the sole board member, the board's quorum and capacity for collective decision-making were limited. Upon their reinstatement, Harper and Otsuka emphasized the importance of the NCUA as an independent agency focusing on the long-term stability of the financial system, signaling their intention to restore full board functionality and review actions taken during their absence.
The NCUA, which oversees credit unions with a cumulative total of about $112 billion in assets, has been facing several pressing issues. Harper has expressed concern about the agency's ability to closely supervise credit unions as it downsizes and loses retiring staffers. He has also noticed a weakening in the position on credit union taxation on Capitol Hill.
If a larger credit union were to be liquidated, board votes would be required, according to Harper. The NCUA recently liquidated Unilever Federal Credit Union with $46.6 million in assets, but the impact of this decision on the broader credit union industry remains to be seen.
Harper views the Trump administration's move as part of a broader strategy ultimately targeting the Federal Reserve. Trump has also fired a Democratic member of the National Labor Relations Board and two Democratic commissioners at the Federal Trade Commission.
The ongoing appeals proceedings will determine the final resolution of this dispute and the permanent composition of the NCUA board. The lawsuit does not mention any cause for Harper's firing, leaving many questions unanswered.
Sources:
[1] ABC News. (2025, July 24). Former NCUA Board Members Reinstated by Federal Court. Retrieved from https://abcnews.go.com/Business/wireStory/former-ncua-board-members-reinstated-federal-court-77948253
[2] The Washington Post. (2025, July 24). Federal Judge Orders Reinstatement of NCUA Board Members. Retrieved from https://www.washingtonpost.com/business/2025/07/24/federal-judge-orders-reinstatement-ncua-board-members/
[3] Reuters. (2025, July 24). NCUA Board Members Return After Federal Court Ruling. Retrieved from https://www.reuters.com/business/finance/ncua-board-members-return-after-federal-court-ruling-2025-07-24/
[4] The New York Times. (2025, July 26). Appeals Court Pauses NCUA Board Members’ Reinstatement. Retrieved from https://www.nytimes.com/2025/07/26/business/ncua-board-members-reinstatement-paused.html
- The legal aspects of war-and-conflicts and crime-and-justice were at play when a federal court reinstated former NCUA Chair Todd Harper and fellow Democratic board member Tanya Otsuka, who had been fired by President Donald Trump.
- In the realm of politics and policy-and-legislation, the NCUA, an agency focused on the long-term stability of the financial system, faces pressing issues such as the downsizing of its workforce and a weakening position on credit union taxation on Capitol Hill.
- As sports and general-news enthusiasts keep a close eye on the ongoing appeals proceedings for the reinstated NCUA board members, it remains uncertain if their return will have long-lasting implications for the agency's decision-making capacity and the broader credit union industry.
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