Supreme Court Ruling Sparks Conservative and Corporate Strategy to Roll Back Regulations

Conservatives and corporate lobbyists wasted no time in strategizing how to capitalize on a recent Supreme Court ruling that significantly curtailed the power of federal agencies. The decision, which invalidated the long-standing legal precedent of Chevron deference, has emboldened conservatives and businesses to launch a renewed assault on climate, finance, health, labor, and technology regulations in Washington.

The ruling, delivered by Chief Justice John G. Roberts Jr., described the Chevron deference framework as “unworkable” and argued that it prevented judges from exercising their judgment. This decision has been a long-sought victory for conservatives and corporate interests, who have been pushing for the dismantling of Chevron deference through legal filings.

The implications of this ruling are far-reaching, with potential consequences for ongoing legal clashes between powerful corporate interests and the Biden administration. Industries such as student debt, overtime pay, net neutrality, water pollution, and cryptocurrency regulation are expected to benefit from the Supreme Court’s decision. Trade associations and business groups are now contemplating reexamining ongoing litigation or launching new attacks against federal agencies.

The National Federation of Independent Business, which has already filed multiple lawsuits against the Biden administration, expects to leverage the Chevron ruling in cases involving the Labor Department’s alleged overstepping of authority. The decision may also discourage federal agencies from issuing new rules, potentially leading them to pause and reconsider their regulatory actions.

Conservative policymakers and corporate lobbyists view the Supreme Court’s ruling as a significant legal victory in their ongoing campaign to limit the power of the federal government. In addition to the Chevron decision, the court’s conservatives have issued rulings that weakened federal climate regulations and made it more challenging for agencies like the Securities and Exchange Commission to enforce regulations. Industries facing scrutiny from these agencies celebrated the rulings.

Lobbying groups representing powerful corporate interests, such as the National Association of Manufacturers, the American Bankers Association, and the National Association of Home Builders, have already signaled their intent to leverage the Supreme Court’s decision or initiate fresh lawsuits. These groups aim to challenge regulatory overreach at agencies like the SEC and the Environmental Protection Agency.

The Supreme Court’s ruling highlights the growing role of federal agencies in policymaking due to partisan gridlock in Congress. However, critics argue that the loss of Chevron deference may lead to significant disruption in insurance programs, federal food and drug review systems, and patients’ health. Tax experts also predict potential challenges for the Internal Revenue Service in implementing recent changes to the tax code.

With federal agencies losing a crucial line of defense, legal experts, consumer advocates, and Democratic lawmakers express concerns about the wide-ranging consequences. They fear that the ruling will invite numerous challenges to federal agency actions, hindering their ability to help the public.

Republican lawmakers on Capitol Hill view the ruling as an opportunity to reclaim legislative power from unelected bureaucrats. They pledge to conduct oversight to ensure agencies comply with the Supreme Court’s decision and refrain from excessive interpretive license in administering statutes under their jurisdiction.