Supreme Court Overturns Chevron, Limits Federal Agencies’ Power

The Supreme Court issued a June 28 ruling (PDF)on limiting the regulatory authority of federal agencies by setting aside legal precedent (known as the Chevron Doctrine) established 40 years ago in the ruling in Chevron v. Natural Resources Defense Council. Under the doctrine, courts were required to defer to an agency's interpretation of laws passed by Congress, as long as that interpretation is reasonable. In the most recent ruling, Chief Justice John Roberts stated, "Chevron is overruled. Courts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority as the [Administrative Procedure Act] requires."

The dispute that led to the reevaluation of the doctrine, Loper Bright Enterprises v. Raimondo, resulted from a challenge to a regulation that required owners of vessels in an Atlantic fishery to pay fees for monitors to collect data and oversee fishing operations while they are at sea.

The decision will likely have far-reaching impacts. As a result of the Supreme Court ruling, there could be a spike in lawsuits over actions by federal agencies.