WASHINGTON — A federal appeals court has postponed a decision on whether former NCUA Board Members Todd Harper and Tanya Otsuka should be allowed to quickly resume their appeal challenging President Trump’s 2025 removal of them from the agency, while ordering the Trump administration to explain by July 29 how it believes the case should proceed.
In a brief order, the U.S. Court of Appeals for the District of Columbia Circuit deferred consideration of Harper and Otsuka’s motion to expedite their appeal, leaving the two former Democratic board members off the NCUA board while seeking additional input from the government, court documents show.
The court has directed the Justice Department to file a response by July 29 addressing how the litigation should move forward. Harper and Otsuka will have until Aug. 5 to file a reply.
Merits Not Addressed
The order does not address the merits of the dispute or determine whether Trump’s April 2025 removal of Harper and Otsuka from the three-member NCUA board was lawful.
Instead, the appeals court signaled it wants additional briefing on how two recent U.S. Supreme Court decisions involving presidential removal authority over independent agency officials affect the case before establishing a briefing schedule or ruling on the former board members’ request for expedited consideration.
Plaintiffs Say Ruling Supports Their Case
As the CU Daily reported earlier, contrary to how some have viewed the rulings, Harper and Otsuka have argued the Supreme Court’s decisions in Trump v. Slaughter and Trump v. Cook (which involved the attempted firing of a Fed Board governor) strengthened their position. They contend Congress intentionally modeled the NCUA after the Federal Reserve, giving it a degree of institutional independence that should shield board members from removal without cause. They also argued the Supreme Court confirmed that courts may temporarily keep officials in office while litigation proceeds when the standards for injunctive relief are met.
The Justice Department opposed expedited consideration, telling the court that the recent Supreme Court rulings do not justify accelerating the appeal. The government said it is “still sorting out how to proceed in this case and others” following the high court’s decisions.
The dispute stems from Trump’s dismissal of Harper and Otsuka in April 2025, which has left Republican Chairman Kyle Hauptman as the NCUA’s sole board member. A federal district judge later ruled the removals were unlawful and temporarily restored the two officials to their positions, but the D.C. Circuit quickly stayed that ruling, keeping them off the board while the appeal moved forward. The case has remained largely on hold pending guidance from the Supreme Court on presidential removal authority.
of independent financial regulators. The Trump administration disputes that interpretation.
Single-Person Board Remains in Place
The D.C. Circuit’s latest order leaves the NCUA operating with a single board member while the court considers how the Supreme Court’s recent rulings should shape the appeal. The panel is expected to determine next steps after receiving the government’s July 29 filing and the former board members’ Aug. 5 response.
Hauptman is currently awaiting the Senate to approve the nomination of John Crews to join the NCUA board, after which he is moving to another government position
