Supreme Court Overturns Chevron Deference

On June 28th, the U.S. Supreme Court overturned the longstanding Chevron doctrine, which has guided judicial deference to federal agency interpretations of ambiguous statutes since 1984. The decision arising from the cases Relentless v. Department of Commerce and Loper Bright Enterprises v. Raimondo represents a significant shift in administrative law and is expected to weaken the power of regulatory agencies.

Chevron deference mandated that courts defer to a federal agency’s reasonable interpretation of an ambiguous statute. This principle was intended to respect the separation of powers by allowing agencies, which possess specialized expertise, to fill in statutory gaps. However, the Supreme Court found that this deference had become too expansive, undermining the roles of Congress and the judiciary.

The ruling means that courts will no longer automatically defer to agency interpretations. Instead, courts will apply a more rigorous textual analysis of statutes independently, without defaulting to the agency’s viewpoint. This change is expected to lead to increased litigation as businesses and other stakeholders challenge regulatory interpretations previously upheld under Chevron.

This decision aligns with concerns that Chevron deference encouraged Congress to avoid clear lawmaking, allowed the Executive Branch to overextend its reach, and diminished the judiciary’s role in interpreting the law. The U.S. Chamber of Commerce, which supported overturning Chevron, emphasized the need for regulatory predictability and stability for businesses.