“Chevron Deference” In The Age Of A Captive Bureacracy

The concept made sense back in 1984, when the Supreme Court held in Chevron v. Nat. Res. Def. Council, that courts should defer to the expertise of administrative agencies in their reasonable interpretations of ambiguous laws. After all, Congress was enacting broad laws affecting highly technical aspects of industries and required a good deal of latitude on the part of agencies to use a level of knowledge and experience that judges didn’t possess and addressed the constant if routine application of law to changing circumstances.

But did that mean the National Marine Fisheries Service not only got to mandate that its observers be allowed on private fishing vessels to prevent over-fishing, but required boat owners to pay its observers $700 per day for the pleasure? That $700 pretty much ate up the day’s profits, but why was this a cost to be shouldered by the boat rather than the government? Because the bureaucrats at the National Marine Fisheries Service said so.

 “Congress has delegated broad authority to an agency with expertise and experience within a specific industry,” Judge Judith Rogers wrote for the majority [of the DC Circuit], adding that “the court’s review thus is limited to the familiar questions of whether Congress has spoken clearly, and if not, whether the implementing agency’s interpretation is reasonable.”

It was, she wrote. “Although the act may not unambiguously resolve whether the service can require industry-funded monitoring,” she wrote, “the service’s interpretation of the act as allowing it to do so is reasonable.”

In the years since Chevron, politicians and activists realized that it was no longer necessary to win a majority in Congress to control the functioning of the American administrative machinery, but rather staff agencies with sympathetic bureaucrats and issue “guidance,” if not rules and regulations, and essentially reinvent the law to serve political ends.

It’s not that there are certainly areas where expertise is critically important, or where department heads don’t demonstrate the humility of faithfully applying the law in furtherance of Congress’ goals.

Wednesday’s argument featured a host of hypothetical questions. Justice Kagan asked who should decide, for instance, whether a product is a drug or a dietary supplement. The answer, she suggested, was an expert agency.

“It’s best to defer to people who do know, who have had long experience on the ground, who have seen a thousand of these kinds of situations,” she said. “And, you know, judges should know what they don’t know.”

However, other agencies, or elements within an agency’s discretion, are less dependent on expertise, or that there is a significant divergence in expert opinion and an agency leads a nation down a road of the bureaucrat’s choosing, even if no one in Congress voted for it and the bureaucrat is answerable to no one for her diktats.

“Agencies know things that courts do not,” Justice Elena Kagan said, “and that’s the basis of Chevron.”

Does Catherine Lhamon at the Department of Education Office of Civil Rights “know things” about Title IX campus sex tribunals that courts do not?* The primary argument against deference is that every change of regime opens the door to a wholesale change of regulation, as the agency is captured by one team or the other.

 Justice Brett Kavanaugh described how the doctrine’s effect is to cause “shocks to the system every four or eight years when a new administration comes in.” Justice Neil Gorsuch, whose mother once ran (and tried to destroy) the E.P.A., complained that regulations flip back and forth from one administration to another.

Roman Martinez, arguing on behalf of the parties who want to kill off the Chevron doctrine, picked up the thread. “Imagine if you’re a person or a regulated entity and you’re trying to figure out what the law is.”

Stability of the law is, of course, extremely important so that people can rely on its consistency, make decisions in reliance thereon and be assured that it won’t flip-flop in four years and leave them in an untenable position. Then again, this Supreme Court has failed to show much fidelity to stare decisis in Bruen and especially Dobbs, leaving it exposed to charges of partisan hypocrisy.

Then again, if it’s not left to agencies to do Congress’ bidding when it enacts vague laws directed toward some general purpose with the details left to bureaucrats to figure out and apply, reversal of Chevron would switch the administrative policy-making function to the judiciary.

Justice Ketanji Brown Jackson said Congress had given some policy choices to the agencies. “And my concern,” she said, “is that if we take away something like Chevron, the court will then suddenly become a policymaker.”

Much as we may not want captive-agency bureaucrats reinventing the law every four years, do we want judges making policy?

The justices were also concerned about whether a decision overturning the decision would give rise to countless challenges to earlier rulings under the doctrine. “Isn’t the door then open for litigants to come back?” Justice Barrett asked, adding, “Isn’t it inviting a flood of litigation?”

The Supreme Court hasn’t heard a Chevron Defense case in years, so the caselaw has been left in the hands of district and circuit judges. They can, and often do, split, such that leaving the administrative functioning of society upon which we depend to a shocking extent in the hands of judges could end up causing chaos as judges disagree and issues remain conflicted and unresolved.

Then again, as Lhamon told Sen. Alexander when asked who authorized her to impose her own personal Title IX fiefdom untouched by either court or Congress, “You did when I was confirmed.” This is where the administrative control of a nation stands today. We need administrative agencies or the nation will cease to function, but we need agencies run by humble experts rather than radical activists bent on abusing Chevron deference to own an industry.

*This is technically Auer Deference, as it applies to regulations rather than statutes, but the same concepts apply.


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5 thoughts on ““Chevron Deference” In The Age Of A Captive Bureacracy

  1. rxc

    One problem that no one seems to mention is that the heads of the administrative agencies who are nominated by the President and confirmed by Congress have changed over the years. In my agency, the original Commissioners were people who had worked directly in the field, inventing new elements in the periodic table. Nowadays, they are mostly former congressional staffers with agendas derived from their patrons, or DEI hires who just happen to have the right words in their resumes, but no experience with the industries they are going to regulate. My agency had a near-death experience with one of these people, and it changed the managerial culture, permanently, for the worse.

    And then there is the matter of the “expertise” that people tout. It is impossible for the government to pay people with up-to-date expertise the salaries they deserve to live in DC, Anthony Faucci notwithstanding.. So the expertise rarely lies in the agencies themselves, but rather in the consulting firms and National Laboratories that the bureaucrats use to do their technical work. And those national laboratories are more like academic institutions, with lots of theoretical and research knowledge, but very little expertise in the practical applications, or cost of the tech, where ALL the expertise lies in the industries. If you think that the FAA knows more about airplanes than Boeing or Airbus, you are sorely misinformed.

    Finally, I would focus on the one word that is the source of all the aggravation:

    Reasonable.

    What does this mean? It has become almost a religious word. Legions of lawyers are sending their kids to Harvard on the money they earn arguing about what it means. We have 300 million citizens in this country, and only 500 million different understandings of that word. It would be a good time for the Congress to talk about risk, and try to establish some legal definitions of what a “reasonable level of risk”, or an “acceptable level of risk” is. It is hard, but since we are now dealing with this sort of thing every day, better for the legislature to take the time to define it than scores of agencies, each one captured by the industries they regulate or the activists who hate the industries they regulate.

  2. B. McLeod

    Some years ago, the courts here in the flats got rid of our state analog of the Chevron doctrine, as the courts decided they were just as smart as any agency. Maybe that comes with the Internet, or staying at a Holiday Inn Express a lot. Now litigants can bring their technical experts, and hope the judges guess it right. In theory, the courts could close the competence gap with special masters, but in practice, they don’t. It hasn’t really prevented pen-and-phone, but the agencies know that if an interpretation draws a challenge, anything could happen. For example, the same words might be found to mean different things at different places within a single legislative enactment. Afterwards, it falls to the legislature to fix what the courts decided, which may actually happen, if the judicial construction is completely unworkable. Then only one set of litigants gets stuck in Wonderland. I’m not sure if it’s really better than rule by bureaucrats. It’s just a different set of problems.

  3. Guy Sande

    Your post title presumes the existence of “regulatory capture” and I’d just like to be shown a single example of an agency clearly in thrall of an industry. I know my mining industry has worked diligently since 1977 to capture the Mine Safety and Health Administration via the revolving door of hiring their people and attempting to seed their offices with ours. To no effect, and arguably to our detriment once the door revolves back to our mine sites. IANAL, just a mining engineer interested in the topics you write about.

    1. abwman

      With due deference to the “no rabbit holes rule” in this hotel, I daresay that examples abound of “regulatory capture.” The evidence is strong that Big Pharma has strongly influenced the FDA and CDC (see, e.g., the opioid crisis, and the changing standards for vaccine approval). Homebuilders have long-maintained their influence on HUD and the Federal Housing Authority (FHA). Corporate Farming has enormous influence on the Department of Agriculture. And “activists” from both political sides have turned multiple departments or agencies into seesaw regulators — see, e.g., NHTSA, OSHA, CFPB, NLRA, SEC, Dept. of Education, Dept. of Energy.

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