• Key insight: Democrats say Trump has abandoned the long-standing practice of nominating minority-party regulators.
• Supporting data: Vacancies remain at the Federal Deposit Insurance Corp., Securities and Exchange Commission, National Credit Union Administration and the Export-Import Bank, and no Democrats currently serve in leadership roles at Senate Banking Committee-overseen agencies.
• Forward look: Lawmakers requested a response from the White House by June 23 with plans to nominate Democratic commissioners and board members.

Senate Banking Committee Democrats on Wednesday pressed the Trump administration to fill vacant seats on financial regulatory boards, arguing that the White House's failure to nominate minority-party members breaks with long-standing precedent of bipartisan policymaking at financial regulatory agencies.

In a letter to Office of Presidential Personnel Director Dan Scavino, Sens. Chris Van Hollen, D-Md., and Raphael Warnock, D-Ga., joined with every Democratic committee member in raising concerns about purely partisan boards at the Federal Deposit Insurance Corp., Securities and Exchange Commission, National Credit Union Administration and Export-Import Bank making consequential financial policy, undermining historically bipartisan board structures and debate.

"No Democrats now serve in leadership roles at any agency within the Committee's jurisdiction," the senators wrote. "Open-ended vacancies damage the leadership structure that Congress established for these agencies … as the SEC, FDIC, NCUA, and EXIM now pursue consequential reforms across the economy and financial system, we are concerned that their lack of Democratic voices thwarts congressional intent."

The dispute touches on concerns bubbling up since the 2024 election that the Trump administration could forgo the historically bipartisan structure that has defined bank regulation at agencies like the FDIC, SEC, NCUA and EXIM. The law reserves FDIC board seats for members of the out-of-power party and presidents have traditionally relied on recommendations from the opposition's Senate leadership to fill those positions. The Trump administration's seeming departure from that practice, the senators say, could undermine the independence of financial regulators.

While the FDIC board has operated with vacancies before, the Trump administration has not publicly expressed plans to nominate Democrats to the two vacant seats. During the Biden administration, the FDIC board had two vacant seats for roughly 9 months following the resignation of former Chair Jelena McWilliams in February 2022. However, President Biden nominated two republicans: Jonathan McKernan and Travis Hill, who were later confirmed. Hill is now FDIC chair.

When asked about the vacancies at a recent press conference, FDIC Chair Hill said he would "move forward with whoever's on the board," and deferred questions about whether the administration had considered candidates for the vacancies "to others within the administration."

"Those are questions that are above my pay grade and not something that we control here at the FDIC," Hill said in response to a question from American Banker. "I don't think in any way it undermines the legitimacy of anything that's happening here. … We are going to move forward with whoever's on the board, and bigger questions are left to others." 

The letter also expressed concern that the administration may nominate another Republican to the SEC to replace Commissioner Hester Peirce, who is leaving by November for a law professor position. 

Democrats contend that doing so without simultaneously nominating a Democrat would violate the Securities Exchange Act, which requires SEC appointments to alternate between parties "as nearly as may be practicable." SEC Chair Paul Atkins, a Republican, was the most recent commissioner appointed.

"No practical barrier prevents the President from next appointing a Democrat to the SEC," the lawmakers continued. "If the President nominated a Republican to replace Commissioner Peirce without also nominating a Democrat to the SEC, he would violate the Securities Exchange Act [and] flout Congress through any gimmicks to appoint allies to seats reserved by law for Democrats."

Citing a recent statement from Atkins supporting a "full complement of commissioners," the senators called on the White House to begin the process of selecting Democratic nominees and directed Scavino to respond by June 23, 2026, outlining his plan for filling the seats.