In a stunning move, the White House dismissed Todd Harper and Tanya Otsuka from the National Credit Union Administration board, abruptly ending their tenures and throwing the agency’s regulatory direction into limbo.
The decision leaves the NCUA without a quorum, effectively halting its ability to issue new rules or take formal board action.
Harper, a Democrat and former NCUA chairman, blasted the decision in a sharply worded statement.
“The decision of the White House to fire me before the completion of my term is wrong,” Harper said. “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.”
Harper, appointed by President Trump to join the board in 2019 and was confirmed to a full term in 2022 that was set to run through April 2027, emphasized his bipartisan leadership style and record of safeguarding credit union members.
“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,” he 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.”
Otsuka, the agency’s most recent appointee with a term that was set to end in August 2029, confirmed that she received notice of her dismissal by email.
“President Trump informed me by email that my ‘position on the National Credit Union Administration is terminated, effective immediately,’” she said. “This is yet another attempt to undermine the rule of law and blatantly ignore Congress and our democratic values.”
Otsuka added that she would continue to advocate for credit union members and defend the agency’s mission, regardless of her removal.
“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. 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.”
The dismissals sent shockwaves through the credit union industry, raising concerns about regulatory continuity and political interference in what has traditionally been a stable, independent oversight body. With the board down to a single member, the NCUA no longer has a quorum, preventing it from initiating new rulemaking, policy decisions, or enforcement actions.
Still, the agency is expected to continue its core supervisory and examination responsibilities, which are authorized under the Federal Credit Union Act. But the broader regulatory outlook is murky, with credit unions left wondering what direction the agency will take under new leadership.
Jim Nussle, President and CEO of America’s Credit Unions, offered a measured response.
“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,” Nussle said.
The NCUA, created in 1970, is an independent agency that insures deposits at more than 4,600 federally insured credit unions, representing over 137 million members. It is governed by a three-member board, with each appointed by the President and confirmed by the Senate for staggered six-year terms. Until now, board members had typically served their terms absent cause for removal.
As the credit union industry braces for leadership reshuffling and policy shifts, the most immediate concern is restoring a functional board. It remains to be seen who the White House will nominate to fill the vacant seats—and whether those individuals will be confirmed in a timely manner. Until then, the NCUA’s regulatory posture remains in a holding pattern, and the future of independent oversight of credit unions is uncertain.