The post-Chevron world is here.
Lisa Needham at Public Notice:
It’s been barely a week since conservatives on the US Supreme Court radically upended the balance of power between the branches of government, giving the federal courts the exclusive power to interpret statutes rather than deferring to agency experts. And we’re already seeing impacts on the ground. Right-wingers have been in the habit of running to their preferred courts to get regulations overturned, but the decision in Loper Bright v. Raimondo, which officially destroyed agency deference, will make it easier — even routine — to block every Biden administration rule they don’t like. Lawsuits to invalidate specific rules had been proceeding through the federal courts before Loper Bright, generally arguing that agencies exceeded their authority in promulgating a rule. These lawsuits exist in no small part because the Supreme Court made it clear they would destroy Chevron deference for years now, with Justice Neil Gorsuch having led the way well before his appointment to the Court.
Trump appointee Sean Jordan, who sits in the reliably hard-right Eastern District of Texas, was so eager to block a Biden administration’s overtime rule that he dropped his decision the same day Loper Bright came out. It runs 36 pages and mentions Loper Bright multiple times, which means either Jordan was so confident of the Supreme Court decision that he either wrote it in advance or he hurried to stuff Loper Bright into his already-written opinion. Jordan’s opinion also rests heavily on dictionary definitions rather than expertise from the Department of Labor, which issued the rule. So now, the rule that would have made 4 million more Texas workers eligible for overtime, and thus more pay, is blocked thanks to a hurried read of a SCOTUS opinion and Webster’s Dictionary.
What this mean is that anytime a business doesn’t like a federal rule, it can just sue. It promises to be a free-for-all. Three hospitals in New Jersey sued HHS the day Loper Bright came down, saying the agency’s interpretation of a statute governing Medicare reimbursement is unlawful. In another case, filed before Loper Bright, a trucking company challenging the Biden administration’s rule that addressed misclassification of independent contractors filed a memorandum on July 2 arguing that Loper Bright means the court should not defer to the Department of Labor’s interpretation of the law. The next day, Trump appointee Ada Brown of the Northern District of Texas enjoined enforcement of the Biden administration’s rule prohibiting non-compete agreements but limited the injunction to the plaintiffs, which are various pro-business groups like the Chamber of Commerce.
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Bigotry from the bench
Unsurprisingly, much of the assault on administration rules relates to any regulation that would protect transgender people. Four days after Loper Bright was handed down, another Trump appointee, Judge John W. Broomes in Kansas, enjoined the Department of Education from enforcing its Nondiscrimination on the Basis of Sex in Education Programs rule in Kansas, Alaska, Utah, and Wyoming. The Department of Education spent two years finalizing the rule, which would have prohibited discrimination based on gender identity under Title IX. The unofficial text of the rule, which runs 1,577 pages with supporting material, is jam-packed with legal analysis. Hundreds of pages are spent explaining how the DOE considered and addressed public comments and the document details the mental health impact of discrimination against LGBTQ students.
Broomes’s expertise is in natural resource law, a background that does not lend itself to a detailed understanding of Title IX, sex discrimination, or gender identity. But none of that matters. His opinion sneers about “self-professed and potentially ever-changing gender identity” and insists that things like using correct pronouns for students and allowing them to use the bathroom that conforms with their gender identity is an issue of “vast economic” significance. Given that the only costs of the rule are things like updated administrative guidance and perhaps hiring additional Title IX staff, the idea it is a vast economic question is, to put it politely, a reach. Instead, Broomes sided with the conservative plaintiffs, including Moms for Liberty and an Oklahoma student who asserted that using the correct pronouns for other students violated her religious beliefs. Because of this mix of conservative state litigants, private anti-trans groups, and an Oklahoma student, the extent of Broomes’s injunction is even weirder than the patchwork blocking of the HHS rule.
Besides blocking the rule entirely in four states, the rule is also blocked for the schools attended by the members of two private plaintiffs, Young America’s Foundation and Female Athletes United, and all schools attended by the children of members of Moms for Liberty. So now, if you are a transgender student unlucky enough to attend school anywhere in the country where a child of a Moms for Liberty student also attends, you’re out of luck. If your school is free of children of book-banners, you get the protection of the federal rule — unless you live in Kansas, Alaska, Utah, and Wyoming, in which case it doesn’t matter what school you go to. Over at Law Dork, Chris Geidner has a good rundown of not just how the courts are sledgehammering LGBTQ rights, but also how having courts, rather than regulators, make these decisions results in an uneven patchwork of rulings over a Health and Human Services rule that prohibited health care providers from discriminating based on gender identity. Only five days after Loper Bright was issued, three separate federal courts issued rulings blocking parts of the HHS rule. There’s no chance that William Jung, a Trump appointee to the federal district court for the Middle District of Florida, hadn’t already written most of his decision before Loper Bright was issued, but the case gave him far more ammunition. Fung’s ruling in Florida v. Department of Health and Human Services blocked part of the Nondiscrimination in Health Programs and Activities rule from going into effect — but only in Florida.
The Loper Bright Enterprises v. Raimondo ruling by the judicial activist MAGA Majority on the Supreme Court is having devastating consequences.
