Supreme Court Backs Trump On CPSC Removals, Raising Stakes For NCUA Showdown

WASHINGTON—The Supreme Court Wednesday cleared the way for President Donald Trump to remove the three Democratic members of the Consumer Product Safety Commission, a decision that could have significant implications for a similar dispute involving NCUA board members Todd Harper and Tanya Otsuka.

As reported by The New York Times, the court’s unsigned order, issued on its emergency docket, allowed Trump to dismiss the CPSC members from the five-person commission, citing earlier rulings that granted the president broad authority to remove leaders of independent federal agencies. The court’s three liberal justices dissented.

While the case remains pending in an appeals court, the high court’s action builds on a string of recent rulings giving Trump sweeping power to control executive branch personnel, even in the face of statutory protections. That same legal reasoning underpins the Trump administration’s argument that it was within its rights to terminate Harper and Otsuka from the NCUA board earlier this year.

As CUToday.info has reported, a federal judge has since ruled that the removals of Harper and Otsuka were unlawful, ordering their immediate reinstatement. As CUToday.info also reported Otsuka and Harper have returned to the agency, attending the open board meeting Thursday.

But Wednesday’s CPSC decision suggests the Supreme Court may be leaning toward a broader interpretation of presidential removal power, potentially weakening the case for the two NCUA officials if it reaches the Supreme Court.

Legal experts note that as the judiciary continues to reinterpret the balance of power between the presidency and independent regulatory agencies, more such firings could be upheld, creating long-term uncertainty for agencies like the NCUA.

As CUToday.info reported, the Trump Administration this week filed a motion to stay the judge’s order reinstating Harpert and Otsuka. Thursday, Holwell Shuster & Goldberg LLP—the legal firm representing Harper and Otsuka—filed a memorandum in U.S. District Court in opposition to the motion to stay.  In the Trump Administration’s legal battle with Federal Trade Commissioner Rebecca Kelly Slaughter, the court moved quickly to temporarily pause a lower court order that had reinstated Slaughter.

Legal analysts now believe a decision on the motion in the Harper/Otsuka case could come within the next day.

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