The 6-3 decision, made along ideological lines, struck down a doctrine known as Chevron deference, which instructed judges to defer to agencies in cases where the law is ambiguous.
In practice, such deference bolstered agencies' ability to implement regulations in wide areas of American life.
Now, instead of deferring to agencies, judges will rely on their own best interpretation of the law — effectively making it easier to overturn these regulations.
"Chevron is overruled," wrote Chief Justice John Roberts, joined by his five conservative colleagues.
"Courts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority."
However, Roberts sought to prevent the decision from impacting prior cases that were decided based on Chevron deference.
"We do not call into question prior cases that relied on the Chevron framework," he wrote. "The holdings of those cases that specific agency actions are lawful—including the Clean Air Act holding of Chevron itself—are still subject to statutory stare decisis despite our change in interpretive methodology."
The Supreme Court's three liberals dissented, saying courts will now play a "commanding role" that Congress has not given them.
The move hands a major victory to conservative and anti-regulatory interests that have looked to eliminate the precedent as part of a broader attack on the growing size of the "administrative state." The Biden administration defended the precedent before the high court.
Read more from Rachel and our colleague Zach Schonfeld in a full report at TheHill.com.
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