The U.S. Supreme Court Reins in Administrative Agencies
WASHINGTON, D.C. (June 28, 2024) – The National Federation of Independent Business (NFIB) today celebrated the U.S. Supreme Court ruling in Loper Bright Enterprises v. Gina Raimondo. The Court vacated the lower court's decision and eliminated Chevron deference, a principle that administrative agencies have long used to bolster their authority and uphold regulatory burdens.
“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 examined whether judicial deference to administrative agencies on legal interpretations should be abolished—a concept rooted in Chevron v. Natural Resources Defense Council. NFIB’s amicus brief, filed alongside the Buckeye Institute, argued against Chevron deference by highlighting the risks of unchecked agency power and proposing a constitutionally appropriate alternative.
Agreeing with these arguments, the Supreme Court determined that courts must exercise independent judgment when deciding if agencies have acted within legal boundaries instead of deferring to agency interpretations.
Small business owners frequently cite unreasonable government regulations as a significant challenge in their operations. Last year, the NFIB Small Business Legal Center published a White Paper on the Regulatory Flexibility Act (RFA), detailing how stringent regulations impact small businesses.
The NFIB Small Business Legal Center is dedicated to protecting small business owners' rights in courts nationwide and is currently involved in more than 40 cases across federal and state jurisdictions.
###
