Abstract Book of the 6th World Conference on Management and Economics
Year: 2025
[PDF]
The Overruling of the Chevron Doctrine and its Ramifications Regarding the Structure and Significance of the Federal Bureaucracy
Martin Schmidt-Schweflinghaus
ABSTRACT:
When the Supreme Court of the United States issued its decision Loper Bright Enterprises v. Raimondo on 28/06/2024 together with its companion case Relentless v. Department of Commerce, the court overruled a doctrine that it had established in its landmark 1984 decision in Chevron v. Natural Resources Defense Council.
The doctrine was about an administrative law principle that compelled federal courts to a federal agency´s interpretation of an ambiguous or unclear statute that congress delegated to the agency to administer.
With curtailing the power of federal agencies in that regard, the Supreme Court has substantively weakened the ability of the federal agencies to autonomously interpret a law, herby threatening the very existence of the administrative state that has grown over decades ( 2 .252.162 million people are still working for the executive branch).
The overturning of the Chevron doctrine not only threatens the power of the federal bureaucracy, but also makes headway for the recalibration of the three branches of government.
This will probably lead to a novel way of the business world operating within the federal framework, leaving behind the entrenched corporatism of lobbyists working hand in gloves with federal agencies.
Keywords: Administrative state, separation of powers, Chevron doctrine, curtailing power of federal agencies, corporatism