Supreme Court Decision Weakens Regulatory Power of Federal Agencies

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The U.S. Supreme Court overturned a decades-old precedent that instructed judges about when they could defer to federal agencies’ interpretations of law in rulemaking on Friday. The decision, decided on ideological lines, overrules the Chevron doctrine. Chevron gave agencies like the FCC and FTC deference in interpreting laws that Congress approved.

The decision deprives courts of a commonly used analytic tool and leaves lots of questions about what comes next. The opinion may cause the “eternal fog of uncertainty” surrounding federal agency actions to dissipate and level the playing field in challenges of government policies. But lawyers warn it raises new questions over what rules courts must follow and how judges will implement them, reports Communications Daily.

The case at issue was a 1984 court case Chevron v. Natural Resources Defense Council. The so-called “Chevron doctrine” has been used by federal regulators like the FCC as an affirmative defense when facing legal challenges brought over by new regulations.

In a 6-3 decision that was made along political lines, the Supreme Court said the case amounted to “a judicial intervention that required judges to disregard their statutory duties,” according to TheDesk.net. The court said Chevron improperly allowed federal agencies to craft new regulations by interpreting certain laws as they see fit.

Chief Justice John Roberts affirmed in Friday’s decision that the overturning of the Chevron doctrine was based on a “change in interpretive methodology,” but said the decision would not be retroactive to cases in which regulators raised the Chevron doctrine as a defense.

The decision opens the door for future legal challenges whenever an agency like the FCC proposes or enacts a new regulation that is based on an interpretation of existing law.

“The Supreme Court’s opinion brings the administrative state into harmony with the U.S. Constitution,” stated Grant Spellmeyer, the CEO of ACA Connects, which represents cable TV and broadband internet providers. “Federal agencies can no longer treat statutes as mere ’starting points’ for the adoption of policies that align with their own whims and political preferences. Rather, they must follow Congress’s commands to the letter.”

WISPA said it’s appealing regulatory actions that could be impacted by the Supreme Court decision. “Regardless of what it may mean for these appeals, it appears that [the] ruling will change, perhaps significantly, how agencies employ their statutory authority. Consequently, though these specific contours cannot now be known, [the decision] will have far-reaching effects on the relationship between Washington, the industries it regulates and the American people.”

In Congress, the court decision leaves a more difficult path for lawmakers to shape how the federal government carries out laws on major issues, reports Roll Call. The decision states that judges should give that deference only when Congress explicitly says an agency can make its own decision. The high court ruling will spark more litigation over regulations, experts said, but also further impede the lawmaking process on Capitol Hill.

Some Republican lawmakers who sought an end to Chevron for years cheered the decision as an end of federal agencies interpreting laws in ways that Congress didn’t intend.

Congressional Democrats, the Biden Administration and consumer advocates criticized the Supreme Court for taking more power for itself. White House press secretary Karine Jean-Pierre said the decision “takes our country backwards” and undermines the ability of agencies to use their expertise to protect the public.

Congress does have the power to restore the Chevron Doctrine should lawmakers agree to do so. That’s because the court decision did not say Chevron violated a constitutional clause or amendment, only that it did not conform with the Administrative Procedure Act of 1946, according to Broadband Breakfast

The Washington Post reported the decision will lead to a “flood” of challenges to regulations.

By Leslie Stimson, Inside Towers Washington Bureau Chief 

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