Sep 11, 2024, 9:00 AM
Sep 11, 2024, 9:00 AM

Supreme Court shifts power back to Congress on agency authority

Highlights
  • The Supreme Court's ruling in Loper Bright Enterprises v. Raimondo on June 28, 2024, transferred the authority to interpret laws from executive agencies back to Congress.
  • This decision highlights the significant growth of federal regulations, which have increased compliance costs to over $2.1 trillion annually.
  • The ruling may lead to a more accountable regulatory environment, prompting Congress to clarify legislative intent and potentially revise existing laws.
Story

In a significant ruling on June 28, 2024, the Supreme Court's decision in Loper Bright Enterprises v. Raimondo shifted the authority to interpret laws from executive agencies back to Congress. This ruling arose from concerns over the expansive growth of federal regulations, which have increased from over 111,000 pages in 1984 to nearly 189,000 pages today, imposing compliance costs exceeding $2.1 trillion annually on businesses and taxpayers. Experts like Wayne Crews highlighted the need for Congress to take action against excessive regulation, suggesting the establishment of a Congressional Regulatory Office to analyze and refine legislative language. This office would assist Congress in understanding the implications of laws and regulations, ensuring that future legislation is clear and precise. The ruling also raises questions about whether Congress should revisit and revise the authorizations in numerous laws passed since 1984. Critics argue that vague legislation has allowed agencies to expand their power, often leading to burdensome regulations that affect individuals and businesses. The decision is seen as a potential deterrent against federal agencies overreaching their authority, with courts now having a more active role in reviewing agency actions. Senate leaders have expressed concerns that the ruling favors special interests over the middle class, prompting legislative responses such as the Restoring Congressional Authority Act. This act aims to amend the Administrative Procedure Act to reinforce judicial deference to agencies, allowing Congress to more easily overturn court decisions that invalidate agency rules. The implications of the Loper decision could reshape the relationship between Congress and federal agencies, emphasizing the need for clearer legislative intent. Overall, the Supreme Court's ruling marks a pivotal moment in the ongoing debate over the balance of power between Congress and executive agencies, potentially leading to a more accountable regulatory environment.

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