Supreme Court Weakens Federal Agencies
Court Overturns 1984 Chevron Precedent
Implication For Government Regulation
Washington, D.C. - The Supreme Court has overturned a longstanding legal precedent that gave federal agencies broad authority to interpret the laws they enforce.
The decision, issued on Friday, is a major victory for businesses and other groups that have long argued that agencies have too much power to make rules and regulations.
The case, Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., stemmed from a dispute over whether the Environmental Protection Agency had the authority to regulate emissions from power plants.
The Supreme Court ruled in 1984 that agencies should be given deference when interpreting the laws they enforce, even if their interpretation is not the most reasonable one.
This precedent, known as the Chevron deference, has been used by agencies to justify a wide range of regulations, from environmental protections to financial regulations.
But in Friday's ruling, the Supreme Court said that the Chevron deference was no longer valid.
The Court said that agencies must now interpret the laws they enforce in a way that is consistent with the text of the law and its purpose.
The decision is a major blow to federal agencies, which rely on the Chevron deference to justify many of their regulations.
It is also a victory for businesses and other groups that have long argued that agencies have too much power to make rules and regulations.
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