Court handles administrative state.
Engaging the Administrative State: The Supreme Court’s Battle
Setting the Stage
After two years of controversial rulings on abortion, guns, and affirmative action, the Supreme Court is gearing up for a new term. This time, however, the focus won’t be on the culture wars. Instead, the court will be diving into the complex world of administrative law, where battles over the power of executive branch agencies will take center stage.
The Rise of Administrative Law
Once considered a dull and technical area of law, administrative law has gained prominence as people realize that it’s these agencies, not Congress, that shape the laws that govern our lives. The Supreme Court’s pushback against expansive executive actions, such as the “clean power plan” and vaccine mandates, has highlighted the significance of debates over agency authority.
Key Cases on the Docket
This fall, the Supreme Court will hear a trio of cases that exemplify the growing importance of administrative law. One case involves the Consumer Financial Protection Bureau (CFPB) and its funding structure. Another case centers around the National Marine Fisheries Service and its controversial rule that forces small fishermen to pay for their own regulators. Lastly, the court will consider the constitutionality of the Securities and Exchange Commission’s (SEC) use of in-house courts to prosecute securities fraud.
The Battle for Agency Funding
The CFPB case raises questions about the agency’s funding mechanism, which bypasses the ordinary appropriations process. The court will determine whether this funding structure violates the separation of powers and Congress’s appropriations power. If the court rules against the CFPB, it could have far-reaching implications for other agencies that operate independently of congressional funding.
Revisiting Chevron Deference
The case involving the National Marine Fisheries Service presents an opportunity for the court to reconsider the controversial Chevron doctrine. Chevron deference, which gives agencies broad discretion in interpreting ambiguous statutes, has been criticized for enabling agency overreach. The court will decide whether to overrule Chevron or clarify the standard for deferring to agency interpretations.
The Fight for Fairness in Administrative Proceedings
The SEC case highlights concerns about the fairness of administrative law judges (ALJs) and the SEC’s expanded power to prosecute individuals through in-house courts. The court will address constitutional issues related to jury trial rights, the nondelegation doctrine, and the president’s control over inferior officers. The outcome of this case could impact the entire ALJ regime and force Congress to provide clearer guidance.
A Constitutional Revolution in the Making
These cases, along with previous rulings on agency funding and Chevron deference, have the potential to reshape our constitutional order. While they may not grab headlines like social issues, the decisions made in these administrative law cases have a direct impact on our daily lives. As the Supreme Court tackles these complex issues, the battle over the administrative state will take center stage in the coming term.
Disclaimer: Ilya Shapiro is the director of constitutional studies at the Manhattan Institute and author of Supreme Disorder: Judicial Nominations and the Politics of America’s Highest Court. The Manhattan Institute has filed or will file amicus briefs supporting the challengers in the three major cases discussed here.
How could a Supreme Court decision striking down the funding arrangement for the National Marine Fisheries Service potentially impact other independent agencies with similar funding mechanisms in terms of their authority and operations?
Onstitutional principles. If the court strikes down the funding arrangement, it could have far-reaching implications for other independent agencies with similar funding mechanisms.
Regulatory Overreach
The case involving the National Marine Fisheries Service brings to light concerns about regulatory overreach by government agencies. Critics argue that the agency’s rule placing the burden of paying for regulators on small fishermen creates an unfair and burdensome regulatory environment. The court’s decision in this case could provide clarity on the limits of agency authority and curb potential overreaches.
In-House Courts and Due Process
The final case on the docket raises questions about the SEC’s use of in-house courts to prosecute securities fraud. Critics argue that these courts lack the impartiality and due process protections provided by traditional Article III courts. The Supreme Court’s decision in this case could have significant implications for the rights of individuals accused of securities fraud and the proper balance of power between administrative agencies and the judicial branch.
The Implications
The outcome of these cases will have wide-ranging consequences for the administrative state and the balance of power between the executive and judicial branches. The Supreme Court’s decisions will shape the future of administrative law and determine the extent to which agencies can regulate and interpret laws without oversight or checks and balances.
Engaging the Administrative State
These cases highlight the importance of engaging with administrative law and understanding the role of agencies in shaping public policy. As citizens, we have a responsibility to be informed and participate in the discourse surrounding the administrative state. Whether through public comments, advocacy, or legal challenges, our engagement will play a crucial role in holding agencies accountable and ensuring the proper functioning of our government.
A Call for Judicial Activism?
Some argue that the Supreme Court should take a more active role in curbing the power of administrative agencies, while others caution against judicial overreach. Balancing agency discretion with the need for accountability is a delicate task that requires careful consideration and a thorough understanding of the complexities of administrative law. As the Supreme Court tackles these cases, it is essential for the justices to assess the impact on both the rule of law and democratic governance.
Conclusion
The battle over the administrative state is a pivotal moment for the Supreme Court. These cases provide an opportunity to shape the future of administrative law and redefine the boundaries of agency authority. The court’s decisions will have a lasting impact on the balance of power in our government and the rights of individuals affected by agency actions. As the court enters this new term, all eyes are on how it will engage and respond to the challenges posed by the administrative state.
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