Supreme Court Limits Federal Agency Powers

The U.S. Supreme Court has issued two significant rulings that limit the authority of federal agencies. In a landmark decision, the Court overturned the 1984 Chevron v. Natural Resources Defense Council precedent, which allowed agencies to interpret ambiguous statutes, thereby reducing their regulatory power. Additionally, the Court ruled that the Securities and Exchange Commission (SEC) cannot use in-house judges for civil fraud cases, affirming the right to a jury trial under the Seventh Amendment. These decisions reflect the conservative majority's efforts to constrain federal agencies' regulatory capabilities. Dissenting justices, particularly Justice Sonia Sotomayor, warned that these rulings could lead to chaos and undermine the administrative state's functionality.