WASHINGTON — The Supreme Court on Friday upended a 40-year-old decision that made it easier for the federal government to regulate the environment, public health, workplace safety and consumer protections, delivering a far-reaching and potentially lucrative victory to business interests.
The court’s six conservative justices overturned the 1984 decision colloquially known as Chevron, long a target of conservatives who have been motivated as much by weakening the regulatory state as social issues including abortion. The liberal justices were in dissent.
The case was the conservative-dominated court’s clearest and boldest repudiation yet of what critics of regulation call the administrative state.
Billions of dollars are potentially at stake in challenges that could be spawned by the high court’s ruling. The Biden administration’s top Supreme Court lawyer had warned that such a move would be an “unwarranted shock to the legal system.”
The heart of the Chevron decision says federal agencies should be allowed to fill in the details when laws aren’t crystal clear. Opponents of the decision argued that it gave power that should be wielded by judges to experts who work for the government.
“Courts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority,” Chief Justice John Roberts wrote for the court.
Roberts wrote that the decision does not call into question prior cases that relied on the Chevron decision.
But in dissent, Justice Elena Kagan wrote that the assurance rings hollow. “The majority is sanguine; I am not so much,” she wrote.
Kagan called the latest decision “yet another example of the Court’s resolve to roll back agency authority, despite congressional direction to the contrary.” Just a day earlier, the same lineup of justices stripped the Securities and Exchange Commission of a major tool used in fighting fraud.
The court ruled in cases brought by Atlantic herring fishermen in New Jersey and Rhode Island who challenged a fee requirement. Lower courts used the Chevron decision to uphold a 2020 National Marine Fisheries Service rule that herring fishermen pay for government-mandated observers who track their fish intake.
Conservative and business interests strongly backed the fishermen’s appeals, betting that a court that was remade during Republican Donald Trump’s presidency would strike another blow at the regulatory state.
The court’s conservative majority has previously reined in environmental regulations and stopped the Democratic Biden administration’s initiatives on COVID-19 vaccines and student loan forgiveness.
