DOJ Appealed Order Reinstating NCUA Board Members
The Justice Department is challenging a judge's decision to return two board members fired by the president.
Updated on Sept. 23, 2026 in Law
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The U.S. Justice Department has filed an appeal regarding a district court order that reinstated National Credit Union Administration (NCUA) board members Todd Harper and Tanya Otsuka. The move follows President Donald Trump's decision to remove the officials from their positions in April 2025.
Why it matters
The case centers on the extent of presidential authority to remove executive officers, with the government arguing that no explicit statute limits this power for the NCUA. This legal battle highlights the distinction between independent agencies with statutory removal protections and those that lack them.
The Justice Department filed its brief on September 19, 2026, seeking to overturn a July 2025 district court ruling that reinstated Todd Harper and Tanya Otsuka. The litigation hinges on whether the NCUA board structure lacks explicit removal restrictions.
The players
Donald Trump
Donald Trump serves as the current President of the United States.
Todd Harper
Todd Harper is a board member of the National Credit Union Administration who was removed from his post in 2025.
Tanya Otsuka
Tanya Otsuka is an NCUA board member who faced removal by the executive branch alongside her colleague.
Justice Department
The Justice Department is the federal executive agency responsible for representing the government in legal proceedings.
D.C. Circuit Court of Appeals
The D.C. Circuit Court of Appeals is the federal court currently presiding over the appeal regarding the NCUA board status.
The details
The government cited the 1903 Supreme Court case Shurtleff v. U.S. to assert the president's general removal authority over executive officers. Lawyers for the Justice Department noted that the NCUA board lacks the specific statutory removal protections granted to members of the Federal Reserve Board of Governors.
Timeline
The Supreme Court issued its Shurtleff v. U.S. decision in 1903.
President Donald Trump fired Todd Harper and Tanya Otsuka in April 2025.
A district judge ordered the reinstatement of the board members in July 2025.
The Justice Department filed its formal appeal brief on September 19, 2026.
Political Context
The administration's legal argument relies on the 1903 Supreme Court case Shurtleff v. U.S. to affirm broad executive removal power. Critics and the initial district court ruling contend that the NCUA board occupies an independent status that requires clear legislative authorization for removal.
This litigation determines whether presidential authority can directly alter the composition of independent financial regulators. A final ruling will clarify the stability and independence of the board overseeing the national credit union system.
The takeaway
The case highlights the ongoing tension between executive power and the autonomy of independent regulatory agencies. Observers are watching the appellate court to see if it sets a standard for presidential oversight that could affect other government boards.
Further reading
For additional context on legal disputes involving federal agencies, visit the Law section.
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