For the last 40 years, federal courts have cited Chevron U.S.A. v. Natural Resources Defense Council, 467 U.S. 867 (1984), to defer to an administrative agency’s “permissible” interpretation of the statutes that it administers—even when a reviewing court reads the statute differently. Chevron has long been targeted by conservatives and business interests who argue that its deferential standard robs courts of their authority and gives too much power to federal agencies.

On June 28, in Loper Bright Enterprises v. Raimondo, 603 U.S. ___, 2024 WL 3208360, together with its companion case, Relentless v. Department of Commerce (No. 22-1219) (collectively Loper Bright), the U.S. Supreme Court overruled Chevron, holding that the Administrative Procedure Act (APA) requires courts to exercise their independent judgment in deciding whether an agency has acted within its statutory authority, and courts may not defer to an agency interpretation of the law simply because a statute is ambiguous. It is difficult to overstate the significance of this watershed decision.