In a landmark decision, the U.S. Supreme Court has significantly curtailed federal regulatory power by overturning a long-standing precedent, delivering a blow to the Biden administration and reshaping the landscape of agency authority.
The U.S. Supreme Court dealt a significant blow to federal regulatory power on Friday by overturning a 1984 precedent that granted deference to government agencies in interpreting the laws they administer, marking a defeat for President Joe Biden's administration.
In a 6-3 ruling, the justices overturned lower court decisions against fishing companies that had challenged a government-run program, partly funded by the industry, that monitored overfishing of herring off New England's coast. This decision, driven by the Supreme Court's conservative majority, continues a trend of curbing federal agency authority.
The overturned precedent, known as "Chevron deference," originated from a ruling involving oil company Chevron. This doctrine called for judges to defer to reasonable federal agency interpretations of ambiguous U.S. laws, a principle long opposed by conservatives and business interests.
"Chevron is overruled. Courts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority," wrote Chief Justice John Roberts in the ruling.
The conservative justices formed the majority, with the liberal justices dissenting. The declining productivity of Congress, exacerbated by partisan divides, has led to increased reliance on agency-issued rules to achieve regulatory goals, particularly under Democratic administrations.
President Biden's administration defended both the National Marine Fisheries Service regulation in question and the Chevron deference doctrine. The fish conservation program was initiated in 2020 under former President Donald Trump.
Liberal Justice Elena Kagan criticized the ruling, arguing that it enhances the Supreme Court's power over other branches of the government.
"A rule of judicial humility gives way to a rule of judicial hubris. In recent years, this court has too often taken for itself decision-making authority Congress assigned to agencies," Kagan wrote.
The fishermen's bid was supported by various conservative and corporate interest groups, including billionaire Charles Koch's network. This litigation is part of a broader effort termed the "war on the administrative state," aimed at weakening the federal agency bureaucracy that interprets laws, crafts federal rules, and implements executive action.
Roman Martinez, an attorney for Rhode Island-based Relentless Inc, one of the fishing companies, hailed the ruling as a victory for individual liberty and the rule of law.
"By ending Chevron deference, the court has taken a major step to preserve the separation of powers and shut down unlawful agency overreach," Martinez said
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