U.S. Supreme Court Reins in Administrative Agencies

Date: June 28, 2024

Loper Bright v. Raimondo concerns regulatory burdens and Chevron deference

WASHINGTON, D.C. (June 28, 2024) – NFIB celebrates today’s U.S. Supreme Court ruling in Loper Bright Enterprises v. Gina Raimondo. The Court vacated the decision of the lower court and eliminated Chevron deference, which administrative agencies have long relied on to increase their power and uphold onerous regulatory burdens. NFIB filed an amicus brief in the case with the Buckeye Institute urging the Court to get rid of Chevron deference and ease the regulatory burden.

“For 40 years, Chevron deference has allowed administrative agencies to enact regulations with little accountability,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “Finally, Main Street can breathe a sigh of relief. Abandoning Chevron will hold agencies accountable and level the playing field in court cases between small businesses and administrative agencies. NFIB hopes that the Supreme Court’s elimination of Chevron deference will remove significant power from unelected bureaucrats.”

The case questioned whether the Court should eliminate judicial deference to administrative agencies on legal interpretations, a concept established in Chevron v. Natural Resources Defense Council. NFIB’s brief argued against Chevron deference by examining the consequences of unchecked agency power and highlighting a more constitutionally appropriate alternative to the legislative indifference and judicial passivity that Chevron enables. Agreeing, the Supreme Court held that courts must exercise independent judgment in deciding whether agencies have acted consistent with the law, instead of deferring to agencies.

Small business owners consistently rank unreasonable government regulations as a top problem in operating their businesses. Last year, the NFIB Small Business Legal Center released a White Paper on the Regulatory Flexibility Act (RFA) and the impact of onerous regulations on small businesses.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

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