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On Tuesday, U.S. District Judge Amir H. Ali ordered the immediate reinstatement of former NCUA board members Todd Harper and Tanya Otsuka. His decision ruled that President Trump acted unlawfully when he removed the two Democratic appointees in April.
In his 27-page ruling, Judge 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.”
Following the decision, America’s Credit Unions President/CEO Jim Nussle issued the following statement to credit unions:
“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.”
In a statement shared with CUToday.info, Harper termed the ruling “a real win for the 143 million Americans who rely on the National Credit Union Administration to protect their rights and insure their deposits.” He continued and said, “It’s also a win for all credit unions by maintaining the agency’s future independence. I look forward to once again working with my fellow board members and the outstanding team at the NCUA to ensure our credit union system and our economy remain safe, stable, sound, secure, and fair.”
The Trump Administration has already appealed the judge’s ruling.
In similar news, U.S. District Judge Loren AliKhan overturned President Trump’s removal of Federal Trade Commissioner Rebecca Kelly Slaughter, citing the action as illegal. A U.S. appeals court has temporarily blocked this court order. The appeals court said the order was meant to give the judges sufficient time to consider the Trump administration’s request to block the ruling and should not be “construed in any way as a ruling on the merits.”