Loper Bright Enterprises v. Raimondo

On June 28, 2024, the U.S. Supreme Court decided Loper Bright Enterprises v. Raimondo, a landmark administrative law case. Commercial herring fishing companies challenged a National Marine Fisheries Service rule requiring them to pay for onboard observers, arguing the agency lacked authority under the Magnuson-Stevens Act. The plaintiffs asked the Court to overrule Chevron U.S.A. Inc. v. Natural Resources Defense Council, which for decades required courts to defer to agencies' reasonable interpretations of ambiguous statutes. In a 6-3 decision authored by Chief Justice John Roberts, the Court overruled Chevron, holding that the Administrative Procedure Act requires courts to exercise independent judgment when interpreting statutes. The lower court decisions were vacated and remanded.

The U.S. Supreme Court overruled Chevron deference in a 6-3 decision authored by Chief Justice John Roberts. The Court held that courts must exercise independent judgment in interpreting statutes administered by federal agencies. The lower court rulings were vacated and remanded for further proceedings consistent with this opinion.

Whether the Supreme Court should overrule Chevron v. NRDC, which established that courts must defer to federal agencies' reasonable interpretations of ambiguous statutory language, and whether the Administrative Procedure Act permits such judicial deference.

The decision reshapes federal administrative law by significantly curtailing the interpretive power of regulatory agencies. It is expected to trigger extensive litigation challenging agency rules across environmental, financial, healthcare, labor, and other regulatory areas, shifting interpretive authority from agencies to courts and altering the balance of power among the branches of government.