Supreme Court Overrules Chevron Deference In 6-3 Decision

Executive Summary; On June 28, 2024, in an anticipated but significant decision, the Supreme Court of the United States overruled Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), which required courts to defer to an administrative agency's reasonable interpretation of an ambiguous statute. The Supreme Court has now made clear that courts must exercise their independent judgment in determining the meaning of statutory provisions, rather than deferring to an administrative agency's interpretation.

In the short term, today's decision in Loper Bright Enterprises v. Raimando creates uncertainty for regulated entities in both the public and private sectors. The Court's decision will lead to immediate litigation challenging prior agency actions or regulations; it also casts doubt on underlying agency positions that derive from the agency's interpretation of a statute. Freed from the constraints of Chevron deferral, practitioners can