WASHINGTON—President Donald Trump has fired NCUA Board Member Todd Harper.
Sources also informed CUToday.info that fellow Democrat, Board Member Tanya Otsuka, has been removed by the White House, as well.
Only the President can remove a sitting member of a federal agency board. Also, under the Federal Credit Union Act, without at least two members on the board, the NCUA is unable to implement any new action, but the agency can still perform its supervisory and examination duties. The decision by the White House Wednesday, sources stated, could be a strong signal the Trump Administration is moving to consolidate federal regulators.
Washington CU advocate John McKechnie told CUToday.info the credit union industry now has to start playing chess.
"And begin thinking about possible scenarios regarding regulatory consolidation. It's fair to say that literally everything is on the table," McKechnie said."
Harper Comments
In a statement, Harper, who preceded Kyle Hauptman as chairman, said: “The decision of the White House to fire me before the completion of my term is wrong. It violates the bipartisan statutory framework adopted by Congress to protect credit union members and their deposits. The Trump Administration’s attack also undermines the independence, balance and important work of the NCUA. If a President can fire an NCUA board member at any time, how will we maintain public trust in our nation’s financial services regulatory system?
“During my six years on the NCUA board, I have worked vigorously to make the credit union system safer and more resilient, increase fairness and protections for credit union members, and advance equity to ensure credit unions work better for all Americans, especially those of modest means,” continued Harper. “I am deeply proud of that important work.
Harper emphasize that he successfully chaired the three-member NCUA board in a bipartisan manner, working consistently to reach consensus with the agency’s two Republican Board appointees between 2021 through 2023.
“Bipartisanship leads to better and measured policymaking,” Harper said. “This ill-conceived and politically motivated decision to fire me before the end of my term upsets that important regulatory balance and will harm consumers. Today is a sad day for our country and the credit union system.”
Harper's History
Trump first appointed Harper to serve on the NCUA Board on February 6, 2019. The U.S. Senate confirmed Harper to serve the remainder of a partial term on March 14, 2019, and he was sworn in as a member of the NCUA board on April 8, 2019. President Jos Biden then designated Harper as the NCUA’s twelfth chairman on January 20, 2021, and Mr. Harper served in this role until January 20, 2025.
On August 6, 2021, President Biden renominated Harper for a full term on the NCUA board. On June 8, 2022, the United States Senate in a bipartisan vote confirmed Harper to serve a term that was not set to expire until April 10, 2027.
The Defense Credit Union Council reacted to the news.
“DCUC appreciates the collaboration and support it has received from the honorable Todd Harper and the honorable Tanya Otsuka, as well as from the NCUA, during their service,” said DCUC President and CEO Anthony Hernandez. “We thank board members Harper and Otsuka for their leadership in addressing issues important to credit unions serving military and veteran communities—including efforts related to APO/FPO access and charitable donation accounts. DCUC looks forward to working with the NCUA and the Administration, especially in protecting the NCUA's independence and safety of the NCUSIF.
DCUC Chief Advocacy Officer Jason Stverak added, “We look forward to continuing to work with the NCUA on issues important to the future of the credit union industry. But DCUC remains firmly committed to a strong and independent NCUA to ensure the unique status of credit unions isn’t lost for their 140 million members across the nation."
ACU Responds
America's Credit Unions reminded that Under the Federal Credit Union Act, without at least two members on the board, the NCUA is unable to implement any new action, but the agency can still perform its supervisory and examination duties.
“America’s Credit Unions has consistently supported a strong, independent regulator for our industry. While today’s news brings a bit of uncertainty to the NCUA, credit unions can rest assured that America’s Credit Unions will continue to engage the Trump Administration and Members of Congress on the unique structure and needs of credit unions to ensure the industry can effectively serve its 142 million members and support a thriving national economy,” said America’s Credit Unions President/CEO Jim Nussle.