Late Tuesday evening, President Trump fired two of the three NCUA board members—Democrats Todd Harper and Tanya Otsuka—years before their terms were set to expire, leaving Board Chair, Republican Kyle Hauptman, the sole remaining board member.

Harper has served on the NCUA board for the last six years, originally appointed by President Trump in 2019 before being appointed as Board Chair by President Biden in 2021 and being reconfirmed for his second term in 2022. His term was not set to expire until 2027. The most recent addition to the board, Democrat Tanya Otsuka, was confirmed in 2023 and had four more years left in her term, which was to end in 2029.

While the White House did not release a statement providing an official reason for the firings, this move follows the firings of other Democrats at independent agencies. Last month, Trump removed the Democratic commissioners at the Federal Trade Commission, and he is currently attempting to remove Democrats from the Merit Systems Protection Board and the National Labor Relations Board. These dismissals are currently under review by the Supreme Court, as opponents argue the president does not have the power to remove appointed officials from their positions before their term expires.

These firings follow the executive order from February, in which Trump issued an executive order attempting to bring independent government agencies, such as the NCUA, under the direct authority of the President. It is seemingly with this authority that the President has authorized these dismissals.

Harper took to LinkedIn to express his frustration with the situation, criticizing the decision and calling it “JUST PLAIN WRONG.” In that same post, he also shared his official statement on the issue, defending his time at the agency and the bipartisan nature of the board, and noting that such “attacks” shake trust in the financial system.

He wrote, “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?”

“During my six years on the NCUA Board,” Harper continued, “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.”

“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.”

Following his post, many credit union leaders and advocates shared their disappointment and outrage at the decision, with one fellow NCUA employee noting he was “stunned.”

Otsuka echoed Harper’s sentiments, writing in a seperate statement, “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. Unfortunately, President Trump has decided to put politics above consumers and the safety of our financial system.”

“Last night, President Trump informed me via 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.”

The third and lone remaining board member, Kyle Hauptman, has not yet made a statement on the change, but has previously discussed the board’s ability to work well together despite its bipartisan nature and the respect he had for his colleagues.

Now, under such conditions, the NCUA is unable to pass or implement any new rules or actions, according to the Federal Credit Union Act. Though the agency is still permitted to perform examinations and supervisory duties, until at least one new board member is appointed and confirmed, the NCUA and Hauptman are essentially paralyzed.

America’s Credit Unions, the industry’s leading advocacy organization, stayed neutral on the decision to dismiss Harper and Otsuka, but did reaffirm its commitment to supporting NCUA’s independence.

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

Senator Elizabeth Warren, Ranking Member of the Senate Banking, Housing and Urban Affairs Committee, spoke out against the firings as well, calling them the “latest attempt by Trump to skirt the rule of law, undermine independent agencies, and illegally purge the government of those who work for the American people.”

As with previous firings at independent agencies, we may see legal action in response to the move, though all of it may be moot once the Supreme Court releases its final ruling on the subject. As this story develops, we may yet see Otsuka and Harper reinstated at the NCUA, or the agency may be forced to leave its bipartisan board in the past.