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Chevron Doctrine: Navigating Challenges to Administrative Agency Actions Moving Forward

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Chevron Doctrine

NAVIGATING CHALLENGES TO ADMINISTRATIVE AGENCY ACTIONS MOVING FORWARD

The US Supreme Court’s decision on June 28 in Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce has overruled the longstanding Chevron doctrine that required courts to defer to an agency’s reasonable interpretation of a statute it administers when the statute was unclear or ambiguous. Now that the Court has repealed the doctrine, decades’ worth of presumptions about agency actions and related challenges—including over rules, orders, and other statutory interpretations—will need to be reexamined.

Morgan Lewis has mobilized a cross-disciplinary team of more than 20 lawyers who regularly represent clients in front of nearly every major federal agency. Blending the strength of our appellate litigation practice with this regulatory experience, our Chevron team stands ready to guide our clients through the new regulatory and legislative landscape, including challenging existing agency rules and orders, mitigating risk for transactions and product development, and crafting responses to agency inquiries or enforcement actions.

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Recent Updates

09/16/2024 - CMS Defers Low Wage Index Hospital Policy Changes in FY 2025 IPPS Final Rule Despite DC Circuit Holding
The Centers for Medicare and Medicaid Services (CMS) has deferred taking immediate action on its low wage index hospital policy in light of the US Court of Appeals for the DC Circuit’s decision in Bridgeport Hospital v. Becerra. While the CMS’s final rule for FY 2025 continues the policy for now, this move signals a potential shift as the agency reviews the court’s ruling and its potential impact on future Medicare payment policies.
09/03/2024 - What the End of the Chevron Doctrine May Mean for ERISA’s Fiduciary Provisions, ML BeneBits
In Loper Bright Enterprises v. Raimondo and Relentless Inc. v Department of Commerce, the Supreme Court held that both the United States’ constitutional structure and the Administrative Procedure Act preclude a court from deferring to administrative agencies when they interpret ambiguous statutory text. Instead, the court must assess the “best meaning” of the statute using traditional tools of statutory construction.
08/22/2024 - DC Circuit Makes Clear Loper Bright Did Not End Deference to Agency Factual Determinations
In a decision on the US Environmental Protection Agency’s risk assessment of a chemical included in its Miscellaneous Organic Chemical Manufacturing (MON) rule, the US Court of Appeals for the District of Columbia Circuit reiterated that agency determinations of fact on scientific issues are entitled to “extreme deference.”
August 2024 - Nuclear Energy Mid-Year Report: Navigating the Changing Nuclear Landscape in 2024
This mid-year report offers an overview of the sector's latest developments—including regulatory and legislative updates, enforcement actions, the impact of certain US Supreme Court decisions, and technological advancements—and what they mean for the nuclear industry.
08/01/2024 - Financial Regulation in a Post-Chevron World: What’s Next?
The US Supreme Court’s decision in Loper Bright Enters. v. Raimondo and Relentless v. Department of Commerce has raised questions regarding the future of financial services regulation, including by the US Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and the US Department of Labor (DOL). While the decision is beneficial to those who wish to challenge these regulators, the practical impact may simply reinforce a judicial trend to overturn rules in this space.
07/22/2024 - Chevron Overturned: Ruling May Impact Challenges to NRC Actions to a Lesser Extent Than Other Agencies, Up & Atom
The US Supreme Court’s recent Loper Bright decision overturned its 1984 Chevron decision, which, over the last 40 years, had become a fundamental doctrine in administrative law. That doctrine, known as the “Chevron deference,” instructed reviewing courts to defer to agency interpretations of ambiguous statutory provisions if a permissible construction of the statute. While many agencies relied on Chevron deference to defend challenges to their rulemakings and other regulatory actions, the NRC has rarely needed to do so.
07/10/2024 - Practical Guidance on Labor and Employment Issues in a Post-Chevron World
With the US Supreme Court’s June 28 decision in Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce, the four-decades Chevron doctrine is no longer. While the Court’s decision has altered administrative jurisprudence as we have come to know it, its impact on labor and employment agency action may vary from sweeping change to a continuation of the status quo. This LawFlash presents a brief summary of the expected impacts for labor and employment law practitioners.
07/08/2024 - US Supreme Court Jettisons Chevron Deference: Practical Impact for Government Contractors
The US Supreme Court on June 28 overruled longstanding precedent and expanded the ability of government contractors to challenge agency interpretations and applications of certain statutes. In Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce (Loper Bright), the Court set aside the 40-year Chevron doctrine and held that courts may no longer defer to an agency’s interpretation of an ambiguous statute. Instead, courts must exercise their own judgment to assess the agency’s statutory interpretation by employing the usual tools of statutory interpretation, such as considering the plain language and congressional intent.
07/08/2024 - Life Sciences Post-Chevron: Navigating the Range of Legal and Regulatory Challenges Raised by Loper Bright
The US Supreme Court’s decision in Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce, which overrules the longstanding Chevron doctrine that required federal courts to defer to administrative agencies’ interpretations of ambiguous or broad statutes, represents a fundamental change in administrative law that will have a substantial impact on all regulated industries. Because life sciences is one of the most highly regulated industries, we have prepared this LawFlash focused on many of the issues that life sciences companies may be facing in light of Loper Bright.
07/03/2024 - Chevron Overruled: Impact on IP Law in the Wake of US Supreme Court’s Decision
The US Supreme Court’s June 28, 2024 decision in Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce overruled the forty-year-old Chevron U.S.A. Inc. v. Natural Resources Defense Council Inc. decision, one of the most-cited cases in US law. This development will have far-reaching impacts, and for intellectual property (IP) law specifically, it could significantly affect how the Court approaches US International Trade Commission (ITC) litigation.
07/03/2024 - The End of the Chevron Doctrine: An Environmental Law Watershed?
The US Supreme Court’s opinion in the Loper Bright v. Raimondo and Relentless v. Commerce cases overruling the rule of deference to agency interpretations of federal statutes established by its decision 40 years ago in Chevron USA Inc. v. NRDC will have far reaching consequences for the interpretation, administration, and promulgation of US environmental laws.
07/02/2024 - Loper Bright Upends Judicial Deference: Implications for the IRS, Treasury, and Taxpayers
On June 28, 2024, the US Supreme Court decided Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce, which ended the era of judicial deference to agencies’ interpretations of federal law, as expressed in formal rules and regulations. The decision will have far-reaching impacts on all federal agencies, including the US Department of the Treasury and Internal Revenue Service, as well as for taxpayers.
06/30/2024 - Chevron Doctrine Overruled: US Supreme Court Upends Longstanding Foundation of Administrative Law
The US Supreme Court on June 28 decided Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce, overruling the Chevron doctrine that for four decades has required federal courts to defer to administrative agencies’ interpretations of ambiguous or broad statutes. The doctrine was a foundation of administrative law and afforded successive US presidential administrations flexibility to interpret statutes via agency adjudications and rulemaking. The Court’s decision will have substantial impact on both regulated industries and agencies.
06/28/2024 - US Supreme Court Curtails Availability of SEC In-House Proceedings
In a 6-3 decision, the US Supreme Court on June 27, 2024, in Securities and Exchange Commission v. Jarkesy held that the Seventh Amendment of the US Constitution entitles a defendant to a jury trial when the US Securities and Exchange Commission (SEC or Commission) seeks civil penalties for securities fraud, and thus that the SEC may not seek such penalties through its own “in-house” administrative enforcement proceedings, which lack juries. Instead, the SEC may pursue such penalties only in federal court.
02/14/2024 - Impact on ERISA Regulation if Supreme Court Throws Chevron Deference Overboard, ML BeneBits
The US Supreme Court heard arguments on January 17 in Relentless v. Department of Commerce and Loper Bright Enterprises v. Raimondo. In both cases, a commercial herring fishing company challenged a regulatory requirement that the company cover the costs of an observer required to ride along on the fishing boat to confirm compliance with various regulatory requirements.
01/25/2024 - US Supreme Court Hears Oral Arguments in Challenge to Chevron Deference, As Prescribed
The US Supreme Court recently debated the future of the legal precedent known as Chevron deference in two separate cases arising out of the National Marine Fisheries Service’s statutory interpretation of the Magnuson-Stevens Act, a statute it enforces. The decision in these cases will almost certainly have far-reaching impacts on agency actions, including as it is applied in the healthcare and life sciences industries.

09/04/2024 - Hot Topics in Employee Benefits: What We’re Seeing – Summer 2024
Please join us for the next installment of our What We’re Seeing webinar series, featuring updates on hot topics and trends designed for individuals operating in the employee benefits space.
08/14/2024 - The Impact of Recent Supreme Court Decisions on Your Compliance Practice
Join us as our panel of professionals weigh in on the recent rulings from the US Supreme Court and how they impact compliance. Of particular note, our panelists will discuss the end of Chevron Deference and what it means going forward.
07/18/2024 - Post-Chevron: What's Next for the Communications Industry
With the US Supreme Court recently overruling their landmark 1984 decision in Chevron v. Natural Resources Defense Council, the power of federal agencies to interpret the laws they administer has been sharply curtailed.
07/17/2024 - Chevron Overruled: Impact on Tax Regulations and Implications for Taxpayers
The US Supreme Court’s recent decision in Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce marked the end of an era of judicial deference to agencies’ interpretations of federal law, including the US Department of the Treasury and the Internal Revenue Service.
07/16/2024 - Chevron Overruled: What It Means for Labor Law
Join us for a webinar as we anticipate the effect the ruling will have on the USA’s regulatory environment. All practitioners and leaders who deal with, or whose work is impacted by the actions of, federal agencies should attend to prepare for potential new legal frameworks and understand how regulatory matters may be affected going forward.
07/02/2024 - Chevron Overruled: What It Means and What’s Next?
Join us for a webinar as we anticipate the effect the ruling will have on the USA’s regulatory environment. All practitioners and leaders who deal with, or whose work is impacted by the actions of, federal agencies should attend to prepare for potential new legal frameworks and understand how regulatory matters may be affected going forward.
05/08/2024 - Hot Topics in Employee Benefits: What We’re Seeing – Spring 2024
Please join us for the next installment of our What We’re Seeing webinar series, featuring updates on hot topics and trends designed for individuals operating in the employee benefits space.
05/21/2024 - Preparing for a Post-Chevron World: Are You Ready?
Join us for a webinar as we anticipate the ruling in coming weeks. All practitioners and leaders who deal with, or whose work is impacted by the actions of, federal agencies should attend to prepare for potential new legal frameworks and understand how regulatory matters may be affected going forward.

09/13/2024 - Leading DC Firms Play Long Game in Life After Chevron Ruling, Bloomberg Law
Partner Bryan Killian spoke with Bloomberg News about how the firm’s Chevron Task Force and strong roster of lawyers with government backgrounds can assist clients in the wake of the US Supreme Court’s decisions in Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce.
09/12/2024 - What the End of the Chevron Doctrine May Mean for ERISA’s Fiduciary Provisions, Lexis Practical Guidance
Lexis Practical Guidance published an article written by partner Julie Stapel discussing the impact of the US Supreme Court’s decision in Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce on two US Department of Labor regulations, the “ESG Rule” and Retirement Security Rule, which are being challenged in federal court.
09/01/2024 - Supreme Court Ruling Could Be ‘Sea Change’ for Healthcare, Healthcare Risk Management
Partner Jacob Harper spoke with Healthcare Risk Management about how the agencies regulating the healthcare industry could respond to the US Supreme Court’s decision reversing the Chevron doctrine. Jacob said that concern about whether an agency’s determination will be overturned by a court is likely to change the way in which they provide compliance interpretation.
08/21/2024 - Chevron’s Absence Leaves Questions for Elusive AI Regulation in US, WatersTechnology
Partner Fred Block spoke with WatersTechnology for an article discussing how the US Securities and Exchange Commission (SEC) might regulate artificial intelligence (AI) following the US Supreme Court’s decision to overturn the Chevron doctrine.
08/15/2024 - Labor Agency Has Tall Task Saving ESG 401(k) Rule Post-Chevron, Bloomberg Law
Bloomberg Law quoted partner Julie Stapel in an article about a case challenging the authority of the US Department of Labor (DOL) to promulgate its sustainable 401(k) investing regulation.
08/05/2024 - After Chevron: NRC Is Shielded From Loper Bright’s Effects, Law360
Partner Ryan Lighty and associate Scott Clausen co-authored a Law360 Expert Analysis article for the publication’s “After Chevron” series looking at the impact on the Nuclear Regulatory Commission (NRC) of the US Supreme Court’s decision to overturn the Chevron doctrine.
07/18/2024 - Loper Bright Upends Judicial Deference: Implications for the IRS, Treasury, and Taxpayers, Lexis Practical Guidance
Lexis Practical Guidance published an article written by partners Jennifer Breen and Matthew Schnall and associate James Steele. The article discusses the impact of the US Supreme Court’s decision in Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce on the US Department of the Treasury and Internal Revenue Service, as well as implications for taxpayers.
07/16/2024 - Sustainability Experts: ‘Start Preparing Now’ for SEC Climate Rule, Other Disclosure Regulations, ESG Dive
ESG Dive quoted partner Erin Martin from comments she made during a virtual event hosted by the publication titled “Risk & Reward: Complying with the SEC’s Climate Rule.”
07/15/2024 - Big Companies Get Boost in Tax Disputes, The Wall Street Journal
The Wall Street Journal quoted partner Jennifer Breen in an article about how the US Supreme Court’s decision to overturn the Chevron doctrine will impact the Treasury Department’s process for promulgating rules based on the tax code.
07/09/2024 - After Chevron: Environmental Law May Face Hurdles, Law360
In this Law360 Expert Analysis, Duke McCall, Ella Foley Gannon, and John McGahren discuss the US Supreme Court’s decision in Loper Bright and Relentless, provide background on the Chevron doctrine, and outline what they feel may be the impact of Chevron’s overturning, including rendering recently promulgated environmental regulations more vulnerable to legal challenges.
07/08/2024 - Republican Challenge to ESG Investing Rule Could Showcase Risk to US Agency Powers, Reuters
Reuters quoted partner Julie Stapel in an article about how a case before the Fifth Circuit challenging a rule allowing socially conscious investing will present an early test for how courts may scrutinize federal regulations in the wake of the US Supreme Court overturning the Chevron doctrine.
07/08/2024 - US Supreme Court Jettisons Chevron Deference: Practical Impact for Government Contractors, Practical Guidance
Practical Guidance published Morgan Lewis’s LawFlash regarding the US Supreme Court decision in Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce, which overruled the Chevron doctrine requiring federal courts to defer to administrative agencies’ interpretations of ambiguous or broad statutes.
07/03/2024 - US Law Firms Smell Opportunity as Supreme Court Guts Agency Powers, Reuters
Partner Bryan Killian is quoted in a Reuters article discussing law firms’ response to decisions from the US Supreme Court that reign in the power of federal agencies, including one that overturned the longstanding Chevron doctrine, which required courts to defer to agency interpretations of statutes deemed ambiguous.
07/03/2024 - Supreme Court’s Agency Power Rulings Could Change Regulatory Landscape for Years to Come, The Wall Street Journal
Partner Justin Weitz spoke with The Wall Street Journal about implications resulting from series of recent rulings from the US Supreme Court, including overturning Chevron deference, related to federal agency power.
07/02/2024 - Supreme Court Decision May Have Sweeping Effects on Healthcare, Experts Say, MedPage Today
Partner Jake Harper spoke with MedPage Today about potential effects on rulemaking from the Centers for Medicare & Medicaid Services following the US Supreme Court’s decision overruling the Chevron doctrine, which gave deference to agency interpretation in instances of ambiguity in a law. Jake noted the Medicare statute is “tremendously ambiguous.”
07/01/2024 - US Supreme Court Scuttles Chevron Doctrine in Landmark Reversal, BioWorld
Partner Michele Buenafe is quoted in BioWorld discussing the potential challenges to US Food and Drug Administration (FDA) actions following the US Supreme Court’s decision to overrule the Chevron doctrine.
07/01/2024 - Overturned Chevron Sets up Steeper Courtroom Hurdles for EPA, Bloomberg Law
Partner Ella Foley Gannon spoke with Bloomberg Law about how the US Supreme Court’s decision overruling the Chevron doctrine could affect environmental regulations.
07/01/2024 - FERC’s Phillips, Christie spar over SCOTUS ruling impact on transmission rule, Politico Pro
Partner Stephen Spina spoke with Politico Pro for an article about the potential impact on the Federal Energy Regulatory Commission’s (FERC) Order 1920 of the US Supreme Court’s decision overturning the Chevron doctrine.
07/01/2024 - What Does the End of Chevron Deference Mean for the DOL?, PlanSponsor
Partner Julie Stapel was quoted by PlanSponsor discussing the US Supreme Court’s decision in Loper Bright Enterprises v. Raimondo, Secretary of Commerce that overruled the Chevron doctrine, which required federal courts to be deferential to federal agencies’ interpretations of unclear statutes.
07/01/2024 - IRS Faces Rulemaking Pressure Following Chevron's Demise, Law360
Partner Jennifer Breen was quoted in a Law360 article about how the US Supreme Court’s decision to overturn the Chevron doctrine will affect the ability of the IRS to develop tax regulations.
07/01/2024 - How Chevron's Fall Could Remake the Energy Sector, E&E News
Partner Stephen Spina was quoted in an article from E&E News by Politico about the potential impact on the energy sector of the US Supreme Court’s decision overturning the Chevron doctrine.
07/01/2024 - IRS Rulemaking Authority on Shaky Ground With Chevron Overturned, Bloomberg Law
Partners Jennifer Breen and Matthew Schnall were quoted in a Bloomberg Law article that discussed the impact of the US Supreme Court’s decision to overturn the Chevron doctrine on IRS rulemaking authority.
06/30/2024 - Chevron Doctrine Overruled: US Supreme Court Upends Longstanding Foundation of Administrative Law, Practical Guidance
Practical Guidance published Morgan Lewis’s LawFlash regarding the US Supreme Court decision in Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce, which overruled the Chevron doctrine requiring federal courts to defer to administrative agencies’ interpretations of ambiguous or broad statutes.
06/28/2024 - Health Regulators Likely to Tread Carefully Post-Chevron, Law360
Speaking with Law360 about implications for legal challenges to the Centers for Medicare & Medicaid Services’ reimbursement decisions now that the US Supreme Court has overruled the Chevron doctrine, partner Jake Harper said providers have another “tool in the toolbox” to dispute a legal stance in federal court.
06/28/2024 - Chevron Ruling No Sea Change For Tax Court, Judge Says, Law360
Law360 covered remarks made by partner Jennifer Breen on a panel at the New York University School of Professional Studies’ recent tax controversy forum regarding the US Supreme Court’s decision to strike down Chevron deference and its impact on the US Tax Court.
06/28/2024 - Agencies’ Influence over Employers May Erode After Supreme Court Decision, HR Magazine
Partner Jocelyn Cuttino was quoted by HR Magazine discussing the U.S. Supreme Court’s decision that overruled the Chevron doctrine, a decision that courts should defer to federal agencies’ reasonable interpretations of ambiguous laws passed by Congress.
04/01/2024 - What A Post-Chevron Landscape Could Mean For Labor Law, Law360
Partners David Broderdorf and Michael Kenneally and associate Monica Ratajczak authored a column for Law360 discussing how the forthcoming US Supreme Court decisions in two cases—Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce—could potentially impact the Chevron deference.
03/15/2024 - The Future of ERISA If High Court Ends Chevron Deference, Law360
Partner Julie Stapel and associate Naina Kamath co-wrote a Law360 Expert Analysis column discussing potential implications for Employee Retirement Income Security Act of 1974 (ERISA) regulations if the US Supreme Court ends the Chevron deference. The article discusses two cases before the Court that could affect the future of the Chevron deference and posits that if the Court abandons or curtails the Chevron deference, ERISA regulations adopted by the US Department of Labor may be more heavily scrutinized, modified, or vacated by federal courts.