Off the Record, On the Issues with John

Judge orders reinstatement of ousted NCUA board members, appeals underway; plus, don’t miss upcoming events on PAC support and succession planning.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

Judge Ali Orders Immediate Reinstatement of NCUA’s Harper and Otsuka, but Appeals Court May Stay Ruling
A federal judge in Washington has ordered the immediate reinstatement of former National Credit Union Administration board members Todd Harper and Tanya Otsuka after finding their April removal unlawful. In a decision issued late Tuesday afternoon, U.S. District Judge Amir H. Ali held that President Donald Trump exceeded his authority when he dismissed the two Democratic appointees.

Harper and Otsuka had challenged their ouster in federal court, arguing that the president’s action violated the statute governing the NCUA’s structure. The Department of Justice, representing the agency, countered that the president retains the power to remove board members at will. In a detailed 27-page opinion, Judge Ali determined that “the text and history of the NCUA statute, along with the structure and function of the NCUA board, confirm Congress restricted the President’s power to remove Board members.”

In her reaction to the ruling, Tanya Otsuka called the decision “a victory for the rule of law and the millions of people who use credit unions.” She added that she looked forward to resuming her duties “to make sure we have a safe and resilient financial system.” Judge Ali further warned that accepting the administration’s removal theory could set a “dangerous precedent,” potentially enabling a president to dismiss the Federal Reserve chair without cause.

The Trump administration has already moved to stay Judge Ali’s order, and the matter is now before the U.S. Court of Appeals for the D.C. Circuit. In a minute order posted on the federal docket Wednesday, Judge Ali wrote he has not issued a ruling because “the motion does not address the Board meeting scheduled to take place on July 24, 2025, or suggest that it provides any basis for a stay. Plaintiffs (Harper and Otsuka) shall respond to the motion by July 24, 2025, at noon.” Late Monday, a separate D.C. Circuit panel temporarily blocked a similar order that would have allowed Federal Trade Commissioner Rebecca Slaughter, a Democratic appointee, to return to her post.

Throughout the litigation, Dakota Credit Union Association has maintained close collaboration with the NCUA, emphasizing its commitment to advancing, empowering, and protecting credit unions nationwide. 

Credit Union Community to Rally September 18 for State PAC Relief Golf Outing
On September 18, our ND PAC golf outing kicks off golf outing kicks off at Memorial Park Country Club in LaMoure, ND. Registration starts at 9:30 a.m. CST and a shotgun start at 10:00 a.m., bringing the credit union community together to generate vital funds for the State PAC and support our legislators in turbulent times; please note there is no room block, and attendees should bring cash—checks will not be accepted on the course—for on-course games and beverages, with awards to follow at approximately 3:30 p.m., and all payments, made by personal credit card or personal check, treated as non-tax-deductible donations to DakCUPAC (corporate contributions are prohibited by law and participation is entirely voluntary). Register here!
 
Building Leadership Resilience: A Step-by-Step Succession Planning Workshop
September 24, 2025 1:00 PM CT/12:00 PM MT
Leadership continuity is a vital component of credit union resilience. With the NCUA’s succession planning rule going into effect January 1, 2026, federally insured credit unions must adopt and maintain a formal succession plan covering key leadership positions. 
 
This focused Webinar workshop will provide practical, step-by-step guidance on building a compliant plan, assessing leadership gaps, preparing for both emergency and planned transitions, and aligning succession with your credit union's long-term strategy. Join us for this session and leave with actionable tools to strengthen your governance and exam-readiness, because strong leadership keeps your mission moving forward — even through change. Register here. 
 
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For more information or to share your perspectives, feel free to contact me.  ​