WASHINGTON--Dismissed NCUA board members Todd Harper and Tanya Otsuka have filed a response opposing the stay that currently bars them from serving until the appeals process concludes.
In their filing, Harper and Otsuka urged the appeals court to issue an expedited ruling that would allow them to return to the board swiftly. They argued that the NCUA requires a functioning quorum to carry out its statutory responsibilities and noted the agency is facing time-sensitive obligations—specifically pointing to the need to extend the interest rate ceiling before it expires in 2026, America's Credit Unions said.
This is the latest update following the administration’s appeal of the lower court’s ruling that President Donald Trump’s dismissal of Harper and Otsuka was unlawful and counter to Congressional intent. The appeals court granted the administration’s emergency administrative stay, which keeps Harper and Otsuka off the board. They will remain off the board, subject to a superseding ruling by the Appeals Court after it considers the emergency motion for stay and subsequent party responses pending appeal.
Brandy Bruyere, partner at Honigman, LLP, expanded on why Harper and Otsuka are seeking an expedited review of the case. She noted they are arguing that the board is without a quorum and therefore unable to begin work on issues such as extending the interest rate ceiling cap, which the fired board members assert is a “months-long process” the NCUA engages in leading up to each expiration.
"Overall, these issues will remain somewhat in limbo until the Supreme Court determines to what extent the President can fire independent board or commission members and when cause is required versus these positions being at-will," concluded Bruyere.
In its decision that sidelined Harper and Otsuka again, the appeals court stated the ruling on the emergency motion to stay is in no way a reflection on how the appeals court may rule on the appeal, and the emergency motion was granted to “give the court sufficient opportunity to consider the emergency motion for stay pending appeal.”
A reply from the administration is due August 11.
America’s Credit Unions stated that it supports a full, bipartisan, three-member NCUA board to lead the independent agency and will closely monitor the appellate proceedings.