Senator Elizabeth Warren, D-Mass., and Representative Maxine Waters, D-Calif., Tuesday raised alarm over the
The lawmakers called the move unlawful, a threat to the independence of the agency
and warned that a board — left with only a single member, Republican chair Kyle Hauptman — paralyzes the NCUA's decision-making capacity. Citing both statutory language and internal NCUA regulations, they argue that further board action requires at least two members to constitute a quorum and conduct business.
"In light of President Trump's decision to fire two of the three Board Members without cause, we write to request information regarding the ability of the NCUA Board, and by extension the agency, to fulfill its mission with only one Board member," Waters and Warren wrote. "Specifically, we ask your office to investigate the NCUA's Chairman's authority to continue full agency operations with only one Board member, and if doing so complies with the spirit and letter of the Federal Credit Union Act and its implementing regulations, including 12 C.F.R. § 791.2."
The lawmakers formally requested the OIG provide documents related to the firings of the two officials, including meeting documents, general counsel opinions and correspondence related to the decision. The lawmakers also asked the Inspector General to provide details on what analysis the White House conducted as to the board's ability to take action with only one member. The lawmakers also ask the OIG for a summary of actions taken by the NCUA board since the firings, providing a legal analysis of such actions and their validity.
The previous day, Harper and Otsuka
NCUA, the credit union industry's deposit insurer, was established in 1970 through the Federal Credit Union Act as an independent agency. While the agency was initially set up with a single director, the 1978 Credit Union Modernization Act modified the agency to consist of a three-member board whose members serve staggered six-year terms with no more than two members belonging to the same political party. NCUA manages over 4,000 credit unions around the country, which hold over $2 trillion of assets.
The administration's decision to remove the two Democratic board members ahead of their terms' expiration is the first time a president has removed an NCUA board member since the board's modern structure was established in 1978.
Harper was appointed by Trump in 2019 and he later served as the NCUA board chair under President Biden, after being nominated to a six-year term. Tanya Otsuka was nominated by President Biden in 2023 and unanimously confirmed. Harper and Otsuka's terms would have extended until 2027 and 2029, respectively.
At the time of their removal, the two members were sent identically worded emails informing them their positions were terminated immediately and did not mention reasons for the firings.
The National Credit Union Administration insists it can continue operating with just one board member, noting it has been done before. But legal experts and industry groups say that NCUA rules require at least two members to move any substantive rulemaking.
For its part, the Trump-era NCUA has cited the example of former Chairman Dennis Dollar, who in 2002 served as the sole board member during the George W. Bush administration for roughly two months. During that time, Dollar conducted board meetings, cast votes and made administrative and operational decisions on his own — actions the agency now frames as a precedent for its current position.
The legal ambiguity around whether NCUA Chair Kyle Hauptman can act alone could further embolden the Independent Community Bankers of America and other bank advocates, who have long argued that credit unions enjoy unfair advantages. If Hauptman moves unilaterally, it could increase the incentive for groups like ICBA to sue.
Credit union trade group America's Credit Unions has stated that with only one board member, the NCUA could be limited in its ability to issue, amend, or rescind regulations due to quorum requirements, which mandate agreement from at least two board members. The group cited precedent from Dollar's two-month stint as the sole NCUA board member, during which time no formal rulemaking occurred.
