Supreme Court ruling on presidential removal power faces test at credit union agency

Two members of the National Credit Union Administration board filed arguments Thursday asking an appeals court to schedule further briefing on their challenge to terminations carried out last April. The lawyers for the two board members stated that the agency shares the same statutory design, market-regulatory functions, and historical lineage as the Federal Reserve.

They wrote that Congress modeled the NCUA on the Federal Reserve when it restructured the agency in 1978.

Background on the Supreme Court decision Earlier this week the Supreme Court issued a 6-3 ruling that removed limits on presidential authority to remove leaders of most multimember agencies. The decision overruled 91 years of precedent that had allowed Congress to insulate certain agency officials.

The opinion noted that prior cases do not necessarily address arrangements at the Federal Reserve and stated that the ruling should not be read to reach that agency.

Effects at other agencies A member of the Surface Transportation Board has dropped some claims following the decision but continues to pursue an argument that the termination was racially discriminatory. At the Equal Employment Opportunity Commission, a judge has directed a fired commissioner to explain by later this month whether her lawsuit can proceed.