💬 Discussion

The Supreme Court curbed the power of federal regulators

Monday, Jul 1

Image: SCOTUS

On Friday, the Supreme Court voted 6-3 to overturn a 40-year legal precedent known as the Chevron doctrine, in a decision that expands the power of federal judges to overturn regulations from the executive branch.

Some quick background: The Chevron doctrine, established in a 1984 Supreme Court ruling, instructs federal courts to defer to the legal interpretations of executive branch agencies when laws enacted by Congress aren’t crystal clear.

Over the past four decades, the doctrine has been the basis for thousands of court decisions to uphold federal regulations stemming from laws like the Fair Labor Standards Act, the Clean Air Act, and the Affordable Care Act.

But the Chevron doctrine is now a relic of the past. In Friday’s decision, the Court’s six conservative-leaning justices ruled that US law requires federal courts to defer to executive branch agencies for any factual and policy determinations – but not when it comes to legal interpretations. The Court’s majority said Chevron had improperly granted that power to government experts, instead of judges.

  • In the dissenting opinion, the Court’s three liberal-leaning justices argued that abolishing Chevron wrongly diminishes the role of expert agencies and reduces the democratic accountability of policy decisions, since authority is shifted from officials appointed by the president to unelected judges with lifetime appointments.

The impact: The Court’s decision means parties who are dissatisfied with federal agency decisions – typically businesses and property owners – can now seek to overturn those regulations by persuading judges that officials exceeded their authority.

Looking ahead… Analysts expect legal challenges to a wide range of major regulator decisions, with potential targets including rules related to vehicle emissions, Medicare/Medicaid, student loan forgiveness, labor protections (overtime pay, unionization, discrimination, etc.), and more.

📊 Flash poll: Do you agree with the Supreme Court’s decision to overturn the Chevron doctrine?

See a 360° view of what media pundits are saying →

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Sprinkles from the Left

  • Some commentators argue that the Chevron doctrine was a sensible power-sharing arrangement between the executive and judicial branches – but now, courts will have unbalanced power to decide the broad landscape of government regulation.
  • Others contend that SCOTUS’ decision to overturn the Chevron doctrine has the potential to fundamentally transform major aspects of the health, safety, and well-being of most Americans.
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Sprinkles from the Right

  • Some commentators argue that the Court was right to overturn the Chevron doctrine, since regulators will now have a harder time bending laws, and Congress will have to legislate more clearly.
  • Others contend that environmentalists are wrong to freak out over the end of the Chevron doctrine, since the Supreme Court hasn’t even used it since 2016, and the environment was on the upswing well before Chevron came into action.
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