Supreme Court Weakens Power of Federal Agencies to Approve Regulations

Landmark Chevron Deference Doctrine Limited

Major Decision Limits Executive Authority

In a landmark decision issued on Friday, June 28, 2024, the Supreme Court significantly weakened the power of federal agencies to approve regulations. The Court ruled that agencies must now prove that a regulation is "based on a permissible construction of the statute" that the agency is enforcing. This new standard, known as "textualism," is more stringent than the previous standard of "Chevron deference," which allowed agencies to interpret statutes more broadly.

The decision is a major victory for conservative groups who have long argued that federal agencies have overstepped their authority. It is also a significant blow to the Biden administration, which has relied on agencies to implement its agenda. The decision is expected to have a wide-ranging impact on environmental regulations, labor laws, and other areas of federal policy.

Background on Chevron Deference

Chevron deference was established in the 1984 case Chevron U.S.A., Inc. v. Natural Resources Defense Council. In that case, the Court ruled that when a statute is ambiguous, courts should defer to the interpretation of the agency responsible for administering the statute. This deference was based on the idea that agencies have expertise in their subject matter and should be given the opportunity to develop their own interpretations of statutes.

Conclusion

The Supreme Court's decision to limit Chevron deference is a significant shift in the balance of power between federal agencies and the courts. It marks a return to a more traditional view of administrative law, in which courts have the final say in interpreting statutes. The decision is likely to have a major impact on the regulatory landscape in the United States, and it will be closely watched by businesses, environmental groups, and others who are affected by federal regulations.