This decision will help small businesses by easing regulatory burdens and agency overreach.
What it means: The Supreme Court’s 6-3 decision in Loper Bright Enterprises v. Gina Raimondo eliminates the Chevron deference that called for judges to defer to federal agency interpretations of U.S. laws deemed to be ambiguous. This decision will help small businesses by easing regulatory burdens and holding agencies accountable.
Our take: “For 40 years, Chevron deference has allowed administrative agencies to enact regulations with little accountability,” said Beth Milito, Executive Director of the NFIB Small Business Legal Center. “Finally, Main Street can breathe a sigh of relief. Abandoning Chevron will hold agencies accountable and level the playing field in court cases between small businesses and administrative agencies. NFIB hopes that the Supreme Court’s elimination of Chevron deference will remove significant power from unelected bureaucrats.”
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After 40 years of legal precedent, a 6-3 decision by the U.S. Supreme Court eliminated the Chevron deference, which called for judges to defer to federal agency interpretations of U.S. laws deemed unclear. The federal agencies used Chevron to justify regulatory overreach in court. This decision will help small businesses by easing regulatory burdens and holding agencies accountable.
NFIB has been active on this issue and filed an amicus brief in July of 2023 with the Buckeye Institute, which argued against Chevron deference by exploring how unchecked agency power impacts small businesses. NFIB shared a more constitutionally appropriate alternative to legislative disregard and judicial passivity that Chevron enables. Agreeing, the Supreme Court held that courts must exercise independent judgment in deciding whether agencies have acted consistent with the law, instead of deferring to federal agency interpretations.
This Supreme Court ruling is a victory for small businesses and will hold agencies accountable. Read the full Supreme Court decision and NFIB’s press release for further details.
