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ALEXANDRIA, Va.–NCUA Board Members Todd Harper and Tanya Otsuka, both Democrats, have been fired by the White House. NCUA declined to comment in response to an inquiry from the CU Daily, but both Harper and Otsuka have issued statements confirming the firings.

As the CU Daily was first to report, the precedent-setting firing leaves only Republican and Chairman Kyle Hauptman on the board, which has since announced it is cancelling its scheduled Thursday board meeting. Ironically, staff reductions being demanded by the Department of Government Efficiency (DOGE) are on the board agenda.

In response to objections to the firings, White House press secretary Karoline Leavitt told Reuters, “President Trump is the chief executive of the executive branch and reserves the right to fire anyone he wants.”

For credit unions, a big question is what will happen to the pace of regulation and enforcement. America’s Credit Unions noted, 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 CU Daily spoke with one person in Las Vegas for NACUSO’s Reimagine Conference who received a message indicating an exam of their CUSO had been cancelled for the time being.

Harper: Move ‘Undermines Independence’

“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?,” Harper said in a statement.

A ‘Sad Day for Our Country’

“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. I am deeply proud of that important work,” Harper continued. “Moreover, I 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. 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.”

President Trump first appointed Harper to serve on the NCUA Board on Feb. 6, 2019 and he was sworn in as a member of the NCUA Board on April 8, 2019. President Joseph R. Biden, Jr., then designated Harper as the NCUA’s twelfth Chairman on Jan. 20, 2021, and he served in this role until Jan. 20, 2025. On August 6, 2021, President Biden renominated Mr. Harper for a full term on the NCUA Board. Harper’s term had been set to expire until April 10, 2027.

‘Politics Above Consumers’

“At the NCUA, I have set politics aside and worked with my fellow board members to focus on what is best for credit unions and their members,” said Otsuka in a statement. ““Unfortunately, President Trump has decided to put politics above consumers and the safety of our financial system. Last night, President Trump informed me by email that my ‘position on the National Credit Union Administration is terminated, effective immediately.’ This is yet another attempt to undermine the rule of law and blatantly ignore Congress and our democratic values. Congress established the Board of the NCUA, like other federal financial regulators, to be bipartisan and independent. Our independence is critical to maintaining confidence and stability in the financial system. 

“I am just the latest public servant the President has attempted to remove. I intend to keep fighting for the rule of law and to protect the millions of Americans who put their hard-earned money in credit unions insured by the NCUA,” Otsuka added in her statement.

Otsuka was nominated by President Biden to serve on the NCUA Board on Sept. 21, 2023, confirmed by the Senate on Dec/ 20, 2023, and sworn in as a member of the NCUA Board on Jan. 8, 2024. Her term was to run through August 2, 2029.

America’s Credit Unions Responds

“America’s Credit Unions has consistently supported a strong, independent regulator for our industry,” America’s Credit Unions’ President and CEO Jim Nussle said in a statement. “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.”

Defense CU Council Responds

In response to the firings, Defense CU Council (DCUC) President and CEO Anthony Hernandez issued a statement saying, “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.  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 in a statement, “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.”

Risks to NCUA

Sources have also expressed concerns to The CU Daily that the firings will only make it easier to roll NCUA up into another regulatory agency, something former NCUA Chairman Dennis Dollar had given 50/50 odds one day earlier in remarks to the NACUSO meeting. Dollar’s remarks came before news of the White House firings.

The firing of board members and commissioners at independent regulatory agencies by the Trump Administration has already occurred. Earlier this year, two Democratic commissioners who served on the board of the Federal Trade Commission (FTC) were fired, an issue the CU Daily explored here with America’s Credit Unions weighing in on the issue.

A Historical Perspective

John McKechnie, who advocates for credit unions on Capitol Hill, told the CU Daily, “I’m not usually in the habit of quoting V.I. Lenin, but he correctly noted that “There are decades where nothing happens, and there are weeks when decades happen.”