For Associations, the New Era of Administrative Law Brings Opportunities and Risks

Rulemaking in the second Trump administration is proceeding in a drastically different landscape than in the first. Decision after Supreme Court of the United States (SCOTUS) decision has changed long-settled administrative law in fundamental ways. For associations, these changes mean more chances to challenge rules that burden members, but also more risk to rules that create a stable platform for their members' operations. Associations would be well-advised to learn about the decisions and how they are being applied in courts around the country, and then to arm themselves for the potential fights to come in this new era of administrative law.

The End of the Chevron Era

The decision in Loper Bright Enterprises v. Raimondo is the most famous of the new decisions. Under the longstanding Chevron doctrine, federal courts had deferred to the executive branch's reasonable interpretations of unclear statutory provisions. Chevron was one of the most cited and influential cases in SCOTUS history. During its 40-year reign, the executive branch mostly won on statutory interpretation questions in court. But in Loper Bright, in a 6-3 decision by Chief Justice Roberts, SCOTUS overruled Chevron and declared that statutes have a "single, best meaning" for federal judges to determine—a reasonable but debatable interpretation won’t be enough for the executive branch anymore.

The rise of the major questions doctrine makes it even clearer that the world of Chevron is gone. In West Virginia v. EPA, in another 6-3 opinion by the chief justice, the court explained that the doctrine applies in certain cases involving agency assertions of power to make decisions of "vast economic and political significance." In these "extraordinary cases," the doctrine requires the agency to identify "clear congressional authorization"—not merely what might be thought the best meaning of the statute. So, a thumb in favor of the executive branch has not just been lifted; in certain cases, it has been placed on the other side of the scale entirely.

Please select this link to read the complete article from ASAE's Center for Association Leadership.