On April 28, a complaint was filed in the U.S. District Court for the District of Columbia, challenging the removal of two Senate-confirmed members of the NCUA Board by President Trump. The plaintiffs allege that their termination was unlawful, as it occurred without cause and violated the statutory protections designed to ensure the independence of the NCUA Board. In the complaint, the plaintiffs argue that the structure of the NCUA Board, with its staggered six-year terms and bipartisan composition, is intended to protect the agency from political interference and maintain its regulatory integrity. Further, the plaintiffs note no president has removed a board member before their term has expired, and the plaintiffs assert that their removal has left the board without a quorum, hindering its ability to fulfill its statutory duties. The complaint states multiple counts, alleging ultra vires action, and violations of the Administrative Procedure Act, the Declaratory Judgment Act, as well as the Constitution’s separation of powers. The complaint seeks declaratory and injunctive relief to restore the board’s lawful composition and prevent further violations of statutory and constitutional law.
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