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High Court Overruling of Chevron Doctrine Stirs Strong Reactions, Uncertainty

July 30, 2024

The Supreme Court’s June 28 overruling of the Chevron Doctrine continues to provoke strong reactions.

• The Loper Bright v. Raimondo decision requires courts to exercise their independent judgment in determining the meaning of an ambiguous statute.
• As reported in a previous CREFC Policy and Capital Markets Briefing, this ruling was celebrated by many Conservatives and business groups who have long sought to curb executive branch power.
• However, critics contend it will exacerbate uncertainty in the regulatory sphere as businesses ramp up lawsuits against regulation.

What they’re saying. Republican and Democratic lawmakers recently introduced strikingly different bills in the wake of the Chevron decision.

On July 23, Sen. Bill Cassidy (R-LA) introduced a bill that would require agency officials to communicate with and testify before Congress regarding certain agency actions, stating:

“For decades, the Executive Branch has exploited Chevron deference to increase its power beyond what Congress intended, all while skirting congressional oversight. Now, with Chevron deference overturned, Congress must work to rein in the Executive Branch and hold it accountable to the people and their elected representatives.”

Furthermore, according to Politico, Cassidy sent letters to various labor-related agencies including the DOL, NLRB, EEOC, and EBSA requesting information on how they would comply with the ruling.

• Reps. Steve Scalise (R-LA), James Comer (R-KY), and other House Republicans are also asking the agencies to review regulations in the new post-Chevron world.

Yes, but: Sen. Elizabeth Warren (D-MA) and several other Democratic senators introduced the “Stop Corporate Capture” bill, which would codify the Chevron doctrine and reform the regulatory process “to end corporations’ influence over the rulemaking process, prioritize scientific and public integrity, and reduce delays in implementation of laws.”

According to Warren:

“Giant corporations are using far-right, unelected judges to hijack our government and undermine the will of Congress. The Stop Corporate Capture Act will bring transparency and efficiency to the federal rulemaking process, and most importantly, will make sure corporate interest groups can’t substitute their preferences for the judgment of Congress and the expert agencies.” 

• CREFC will continue to monitor these developments and report back to you.
• Stay tuned for a CREFC webinar that will explore the implications of a post-Chevron world.

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