At the end of this year’s term, the Supreme Court rejected a 40-year rule that required judicial deference to the subject-matter expertise of federal departments and agencies when interpreting statutory requirements through regulations. The ruling in Loper Bright Enters v. Raimondo could upend administrative law on federal regulations on everything from food and drug safety, clean air and water, to health care, civil rights, worker rights and safety, education, transportation safety, and more. Specifically, the Court overturned its ruling in Chevron USA, Inc. v NRDC, which had required judges to defer to federal agencies’ interpretations of law.
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Why It Matters: The Loper Bright decision will likely result in more challenges to federal rulemaking which will in turn delay or alter reforms and relief for people charitable organizations serve. In particular, it is expected that Treasury Department and Internal Revenue Service interpretations of tax laws will come under increased scrutiny by the courts, potentially affecting tax-exempt status.
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