Advocacy News – July 2, 2024
In an opinion announced June 28, the U.S. Supreme Court overruled a 1984 decision that held courts should defer to federal agencies’ reasonable interpretations of ambiguous statutes passed by Congress.
Why it matters: The 6-3 decision by the Court dealt a major blow to federal agency regulatory power and will have significant implications for businesses across the U.S. because the current judicial doctrine has protected different federal regulations from legal challenges for decades. Legal observers believe the decision, which overturns the “Chevron deference,” could help control regulatory overreach by the executive branch and federal agencies.
The bottom line: The ruling is expected to make it harder for President Joe Biden or any future president to pursue policy priorities, from wiping out student debt to expanding protections for pregnant workers to addressing climate issues to regulating artificial intelligence. At the very least, Agency rules will be more susceptible to court challenges, allowing plaintiffs ask courts to exercise their independent judgment in deciding whether an agency has acted within its statutory authority, as the Administrative Procedure Act requires.
Go deeper: Read the Court’s opinion or more information on the matter from our friends at Miller Canfield.