Supreme Court Decision Limits Federal Agency Authority

In a landmark decision, the U.S. Supreme Court has overturned the “Chevron deference,” which has traditionally allowed federal agencies to interpret ambiguous laws. The ruling, passed with a 6-3 majority, significantly reduces the power of federal agencies to regulate corporations and could shift the responsibility of policy interpretation to lower federal courts. This change is expected to impact agencies like the EPA and the Department of Education, potentially leading to less stringent environmental and public health regulations.
The Chevron deference, established in 1984, has been a key principle enabling agencies to enforce laws using their expertise. Critics argue that this shift could destabilize government operations, as broad statutes often require specialized interpretation. Anthony Moffa, a law professor, warns that this could lead to inconsistent regulatory enforcement and potentially harm both consumers and corporations that rely on stable regulations for planning and investment.