Supreme Court Limits Federal Regulatory Authority
Decision Weakens Chevron Deference Standard
Overturns 40-Year Precedent
WASHINGTON, D.C. (June 28, 2024) — The Supreme Court on Friday issued a major decision limiting the broad regulatory authority of federal agencies. The 6-3 ruling in West Virginia v. Environmental Protection Agency overturns the Court's 1984 decision in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., which established the "Chevron deference" standard.
Under the Chevron deference standard, courts were required to defer to reasonable interpretations of ambiguous statutes by federal agencies. This standard gave agencies significant leeway in implementing and enforcing laws.
In its decision, the Court found that the Chevron deference standard was not supported by the text of the Constitution or the Administrative Procedure Act. The Court held that agencies may only exercise authority that is explicitly granted to them by Congress.
The Court's decision is a significant blow to the Biden administration's regulatory agenda. The administration has relied heavily on federal agencies to implement its climate change and environmental priorities. The decision is also a major victory for conservative groups and business interests that have long criticized the Chevron deference standard.
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