Policy Backgrounders

The End of Chevron Deference

July 03, 2024

Trusted Insights for What’s Ahead™

The Supreme Court reversed 40 years of precedent in a major case with implications for all regulated industries. In Loper Bright Enterprises v. Raimondo (and its companion case, Relentless, Inc. v. Department of Commerce), the Court overturned a 40-year precedent that courts should defer to agency interpretations of statutes if a statute is ambiguous. This has far-reaching implications for administrative law and regulated industries. 

• The decision will lead to greater litigation against agencies’ regulations, and the burden of proof has shifted significantly against agencies’ statutory interpretations in areas where Congress has not spoken clearly. 
• The decision thus shifts power from agencies to courts to decide the proper interpretation of statutes and therefore many technical matters subject to regulation, but those decisions will likely turn first on questions regarding delegations of authority rather than on substantive determinations on technical matters.
• The decision will affect virtually every business, including matters concerning environmental law, labor law, financial services regulation, agriculture, health care, and other major areas.
• Overall, the decision may mean less regulation in highly regulated sectors over time as agencies must establish that Congress clearly delegated them authority to regulate on a particular matter.