Supreme Court Ruling Limits U.S. Federal Agency Powers

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6–3 decision weakens regulatory authority, with major implications for environment and labor.

In a landmark 6–3 decision, the U.S. Supreme Court has ended the decades-old “Chevron deference,” a legal principle that allowed federal agencies wide latitude in interpreting ambiguous laws.

The ruling marks a seismic shift in American administrative law, weakening agencies like the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), and the Federal Trade Commission (FTC).

Writing for the majority, Chief Justice John Roberts argued that “Congress must speak clearly if it wishes to delegate authority.” Critics say the ruling will hinder the federal government’s ability to regulate health, environment, and safety.

Justice Kagan, in a sharp dissent, warned this “puts courts, not experts, in charge of complex decisions,” calling it a judicial power grab.

The decision is expected to fuel legal challenges to existing regulations and complicate future rule-making under both Democratic and Republican administrations.

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