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ARTICLE · 03 JULY 2024

Supreme Court Strikes Down Chevron: What Now?

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On June 28, the United States Supreme Court overturned a decades-old precedent, Chevron v. Natural Resources Defense Council, Inc., 467 U. S. 837, a ruling that instructed judges...

United StatesLitigation, Mediation & Arbitration
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
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On June 28, the United States Supreme Court overturned a decades-old precedent, Chevron v. Natural Resources Defense Council, Inc., 467 U. S. 837, a ruling that instructed judges about when they could defer to federal agencies' interpretations of law in rulemaking. In Loper Bright Enterprises v. Raimondo, the Court held that the Administrative Procedure Act "requires courts to exercise their independent judgment in deciding whether an agency has acted within its statutory authority."

Chevron had applied a two-step approach to interpreting federal statutes. First, courts had to determine whether Congress had directly spoken to the precise statutory question at issue. If the statute was silent or found to be ambiguous, Chevron directed courts to defer to the agency's reading of the statutory provision as long as that interpretation was a "permissible" construction of the language.

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