The Supreme Court’s decision in West Virginia v. EPA established the “major questions doctrine” as binding law, destabilizing the Court’s previous doctrinal approach to administrative regulations and announcing the beginning of a new legal regime. Before West Virginia, courts evaluated administrative regulations under the Chevron deference framework, where statutory ambiguity required courts to defer to agencies’ reasonable interpretations of the law. West Virginia changed the legal landscape by barring agencies from answering any questions of major economic and political significance without clear congressional authorization. West Virginia, which argues that the major questions doctrine has its roots in FDA v. Brown & Williamson. However, Brown & Williamson does not provide a foundation for the major questions doctrine as it appears in West Virginia. Rather than arising naturally from common law adjudication, wherein judges seek cases with analogous facts and then apply parallel reasoning, the Court produced the major questions doctrine by excising particular phrases from legal decisions and treating those phrases as binding law. The history of the major questions doctrine thus suggests that factors external to law influenced its development.
This Thesis seeks an explanation for the major questions doctrine in the political circumstances of its creation. It does so by comparing West Virginia to another significant doctrinal shift, that of West Coast Hotel v. Parrish during the New Deal era. The Supreme Court’s decision in West Coast Hotel transitioned the judiciary away from interference with federal policy and towards a posture of deference towards the federal government. By contrast, West Virginia discourages the judiciary from deferring to federal policy and instead encourages courts to invalidate administrative regulations. West Coast Hotel was decided during a time when political consensus strengthened the political branches of government, whereas West Virginia was decided during a time when political polarization weakened the political branches. This comparison indicates that shifts in judicial doctrine occur within a system of interbranch power dynamics, wherein the Court can assess its strength relative to the political branches and act accordingly.
Introduction
I. Why The MQD?
A. The MQD is a Critical Doctrinal Shift
B. Political Implications of the MQD
II. The MQD: Becoming A Doctrine
A. So-called “Major Questions” Cases
B. The Court’s Legal Reasoning
III. Another Doctrinal Shift: The New Deal
A. Setting the Stage
B. The Switch in Time
IV. Comparing The MQD And The New Deal
A. Doctrinal Shifts: Deference vs. Interference
B. Political Contexts: Consensus vs. Polarization
C. Explanations: How Politics Affects the Court’s Power
Conclusion
This piece won the 2024 Hutchinson Prize.
Introduction
On June 30, 2022, the U.S. Supreme Court handed down West Virginia v. EPA, declaring that the “major questions doctrine” required it to invalidate the Clean Power Plan, an EPA interpretation of the Clean Air Act. The EPA’s attempt to set emissions goals for power plants constituted a question of “vast economic and political significance,”[1] which the agency could not answer without “clear congressional authorization.”[2] The decision was met with confusion from the legal community, many of whom had never heard of the doctrine before and most of whom had not anticipated such a serious departure from established precedent.[3] Justice Kagan, writing for the dissent, accused the Court of “magically” creating a new doctrine for its own convenience.[4] The phrase “major questions doctrine” or “major questions canon” had appeared sporadically in lower court opinions, mostly penned by dissenting judges, but the federal circuit courts rarely gave weight to such arguments. Instead, they operated by the doctrine which had controlled courts’ approach to agency regulations since 1984: Chevron deference, which instructed courts to defer to reasonable agency interpretations of statutes. West Virginia created a substantial carveout to Chevron by broadly foreclosing all questions of “vast economic and political significance,” a rule with the potential to severely restrict agencies’ range of motion. The major questions doctrine (“MQD”) was a substantial shift in judicial policy towards administrative agencies, yet it could not have been predicted by the case law preceding it.
Shifts in judicial doctrine happen all the time. Less often, however, do they involve such a decisive departure from precedent or signal such a significant change in the scope of federal authority. To understand the nature of the Court’s decision in West Virginia, I will compare it with another major doctrinal shift which also had massive implications for government power. In the early twentieth century, the Supreme Court relied on a doctrine commonly referred to as “Lochnerism,” named for Lochner v. New York,[5] to invalidate minimum wage and maximum hour laws. The Court abruptly abandoned Lochnerism in West Coast Hotel v. Parrish,[6] when it upheld a Washington state minimum wage law only ten months after invalidating a near-identical New York law.[7] Observers coined the phrase “switch in time that saved nine” to describe West Coast Hotel, reflecting the prevailing view that the Court had changed its stance on New Deal policy in an effort to preserve its composition and power.[8] Like West Virginia, West Coast Hotel was a significant shift in judicial policy which could not have been predicted by precedent alone. Unlike West Virginia, wherein the Court shifted away from a posture of deference to the federal government and towards a posture of interference, the Court in West Coast Hotel shifted away from a posture of judicial interference and towards a policy of judicial deference. In both cases, the degree and timing of the Court’s shift in policy cannot be attributed solely to the Justices’ ideological views.
In this paper, I seek to interrogate the origins of the MQD and ask how it emerged as a doctrine. First, I will ask whether the MQD truly has support in precedent, and if its arrival can be explained through common law legal reasoning. I will argue that the MQD is not supported by seminal case law in the area of agency statutory interpretations, particularly FDA v. Brown & Williamson.[9] Rather, the Court crafted a doctrine by extracting certain phrases from Brown & Williamson without proper attention to the most crucial aspect of that Court’s reasoning. Second, I will move beyond the Court’s legal reasoning to place the MQD within the broader political context of the Court’s doctrinal shift. I will compare West Virginia to West Coast Hotel, and by doing so create a contrast between political consensus during the New Deal and political polarization now. I will argue that the relative power of the political branches vis-à-vis the Supreme Court is a critical factor in the direction of judicial policy. The existence of political polarization stymies the political branches’ ability to check the Court, allowing the Court to make decisions which may not be available to it during times of political consensus. Moreover, changes in the realm of administrative law are especially consequential in times of polarization, because Congress must rely more heavily on agencies to effect policy and fill in legislative gaps. When the Court removes agencies’ ability to act, as the MQD indicates it intends to do, paralysis in Congress may result in paralysis in government as a whole.
This Thesis will proceed in four parts. In Part I, I will explain how the MQD is a doctrinal shift and why it matters, by comparing the MQD to Chevron deference and by outlining its potential to stymie government action. In Part II, I will investigate the MQD’s foundation in precedent through an analysis of FDA v. Brown & Williamson and a brief discussion of other cases cited in West Virginia, ultimately demonstrating that the MQD is not supported by precedent. In Part III, I will provide background for and a fuller explanation of the judiciary’s doctrinal shift during the New Deal, focusing on the Court’s inability to continue resisting the New Deal agenda due to President Roosevelt’s political power. In Part IV, I will compare the political contexts in which the crucial cases of these two eras were decided, emphasizing relative consensus in the political branches during the New Deal in contrast to relative polarization in the political branches in recent times. I will offer an explanation for the different paths these two different courts took, which will center on the strength of the political regimes each Court confronted as it handed down decisions.
I. Why The MQD?
Courts create new doctrines all the time. In a common law system where precedent is binding, courts consistently decide similar cases in similar ways. Over time, a popular method of resolving a particular type of case might acquire a name—strict scrutiny, the Lemon test, Pickering balancing, and so on. Sometimes these doctrines are unremarkable. Sometimes they fundamentally shift the structure of constitutional law. Both the MQD and the New Deal fall into that second category of doctrinal shift. The New Deal inaugurated an era of federal economic regulations, in contrast with the judiciary’s earlier insistence that the federal government had no place interfering with private economic transactions or intrastate commercial activities. The MQD, for its part, symbolizes the judiciary’s reorientation of its earlier approach to the administrative state. Before the MQD, the judiciary and the administration were partners in interpreting statutes; now, the courts have almost sole power to interpret statutory law. After the MQD, every question of significance must be resolved by Congress within legislation. Moreover, the MQD’s insistence on legislation as the only proper site of policymaking poses problems for an increasingly polarized government.
A. The MQD is a Critical Doctrinal Shift
The MQD arrived into a judicial world with a rich and complex history of interacting with and regulating the administrative state. The “administrative state” is a catch-all term for the body of regulatory agencies created by Congress for the purpose of effecting its legislation. In general, Congress writes a statute which creates a regulatory agency and confers some sort of power upon it—collecting taxes, enforcing environmental legislation, inspecting workplaces for compliance with health and safety standards, and so on. These functions place regulatory agencies at least partially under the control of the executive branch, which is charged with effecting congressional legislation. As a result, the administrative state sits oddly between the executive and legislative branches as something of a “fourth branch” of government.[10] The modern administrative state finds its origins in the Industrial Revolution, which called forth a more robust regulatory structure to meet the challenges and demands of the new socioeconomic situation.[11] In recent years, the administrative state has come under criticism from political conservatives, who argue that agencies are not sufficiently democratically accountable in relation to the power they wield. Meanwhile, liberals tend to emphasize the technical expertise of agencies and their greater flexibility in tackling new and complex problems. These trends have shifted over time as political control of the administrative state has shifted.[12]
Congress creates agencies and defines the scope of their power, but agencies’ position as enforcers of statutes often requires them to interpret those statutes. Agencies must decide upon the circumstances in which a given law applies, and sometimes, Congress will even ask the agency to create its own standards of regulation.[13] The scope of the law, its clarity, and its specificity determine how much freedom an agency has in interpreting it. For any administrative decision that requires more than direct application of a clear and specific statute, agencies will issue their interpretation in the form of a regulation published in the Federal Register. These regulations are the product of both the agency’s technical expertise and the political orientation of the executive branch.
Generally, the federal judiciary has two pathways for reviewing agency decisions. First, courts can enforce legislation guiding agency regulatory processes. The Administrative Procedure Act (APA), enacted in 1946, sets guidelines for agency action and enumerates the circumstances in which courts may review agency action.[14] Under the APA, courts generally review the quality of an agency’s regulatory process, ensuring that the agency has gone through the required procedures before promulgating and enforcing a regulation.[15] Second, courts may determine whether the laws which create regulatory agencies and charge them with certain obligations are themselves constitutional.[16] Under this second category of legal decisions, courts create and apply a number of doctrines which find their justifications in constitutional or common law principles. The MQD falls under the second category of judicial review, as it relies on a theory of institutional roles in which Congress alone may make important policy choices.
Before the rise of the MQD, courts would most often examine agency regulations under the framework of Chevron v. Natural Resources Defense Council,[17] often referred to as Chevron deference. Chevron was a 1984 watershed Supreme Court decision wherein the Court adopted a posture of deferring to administrative agency decisions. The decision established a two-step process for judicial review of agency regulations, whose basic purpose is to ask whether an agency’s interpretation is consistent with the legislation that created that particular agency and/or granted it the regulatory power at issue.[18] Step One asks whether Congress has spoken to the question at hand, i.e., the object of the regulation. If the legislation is clear and resolves the question, the inquiry ends there. If the legislation is ambiguous, courts must proceed to Step Two. At Step Two, “the question for the court is whether the agency’s answer is based on a permissible construction of the statute.”[19] Chevron therefore accommodates legislative ambiguity and provides agencies room to maneuver within the bounds of their respective statutory schemes. Its application tends to result in decisions favorable to agencies, thus allowing the administrative state to chart its own political agenda under the direction of Congress and the President.
Chevron typified an older approach to constitutional theories of institutional roles, as well as to statutory interpretation more broadly. Under Chevron, the judiciary accepts that Congress cannot anticipate every possible situation in which a law might apply. Some of those lingering questions must be resolved in the course of the statute’s everyday application, and agencies surpass courts in both technical expertise and experience with the daily realities of the statute’s application.[20] Moreover, the judiciary acknowledges that there is often no right answer to the question of “what the law is.”[21] Chevron allows implementing agencies to participate in the process of answering interpretive questions, both providing an institutional role for administrative states and limiting the judiciary’s ability to interfere [22]with that role. As a result, agencies can do things like pursue important environmental regulations, protect vulnerable workers from the effects of deadly disease, and enforce standards for workplace equality that account for the complexities of disability.22
Under the MQD, agencies may not be able to do any of these things. As articulated in West Virginia, the MQD operates as a clear statement rule which requires Congress to “speak clearly” if it wishes an agency to answer a question of “vast economic and political significance.”[23] It thus carves out a special category of cases wherein Chevron no longer applies. Instead of asking whether a statute is ambiguous, the MQD asks whether a regulation is economically and politically significant. The vagueness of this standard of economic and political significance—or “majorness”[24]—makes it possible to construe that category very broadly, capturing a wide range of agency activity. If the regulation is major, courts must then move to an examination of the statute to determine the regulation’s permissibility. But this analysis does not look like statutory interpretation under Chevron. Instead of asking whether the regulation can be sustained through a reasonable reading of the statute, courts must ask whether the legislation explicitly approves the specific regulation. If the statute is ambiguous, the regulation is impermissible. The MQD thus requires an approach opposite to Chevron; a finding of ambiguity under Chevron tips the scales towards the agency, whereas a finding of ambiguity under the MQD requires courts to invalidate the agency regulation. Chevron has demonstrated that courts tend to find statutory ambiguity more often than not,[25] which makes it likely that most regulations of “economic and political significance” will be invalidated by the MQD. The MQD thus reduces agencies’ institutional role by limiting the degree to which they can act independently. Moreover, by rejecting agency interpretations of ambiguous laws, the MQD places the power of statutory interpretation entirely in the hands of the judiciary.
B. Political Implications of the MQD
My second reason for examining the MQD is its potential for vast political consequences, resulting from its ability to invalidate a wide variety of administrative regulations. The MQD disturbs a previous judicial doctrine which, by allocating a role for the administrative state, allowed agencies to grow into integral pieces of American government. However one feels about that plethora of agencies, the American state would look very different without the Food and Drug Administration (“FDA”) regulating food and drug safety and the Equal Employment Opportunity Commission preventing employers from discriminating against their employees. Limiting agency capacity will remove a tool of legislative construction from Congress’ arsenal. Such a removal may have deep consequences for government capacity in the context of heightened political polarization.
As Congress becomes more politically polarized, with increasing disagreement and ideological distance between Democrats and Republicans, it tends to rely more on administrative agencies to fill in statutory gaps. Polarized Congresses tend to pass fewer laws, a phenomenon referred to as legislative gridlock.[26] Polarized Congresses also tend to delegate more implementing authority to regulatory agencies; Sean Farhang has found that “Congress passed an increasing volume of regulatory commands that it entrusted to agencies for implementation” from 1970 to 2008.[27] Recent decades have seen an increase in administrative delegations in the form of rulemaking and sanctions.[28] Overall, the trend in polarization is correlated with an increase in administrative authority over statutory implementation, although the effects on agency power depend on the agency’s agenda and the type of authority delegated to it.[29] This being the case, even if the MQD succeeds in its goal of limiting agencies’ ability to make significant policy changes, Congress will remain polarized for the foreseeable future. Reduced agency authority poses a challenge for legislative productivity, as Congress will face another obstacle in crafting legislation that members of both parties can accept.
Moreover, as Congress’ legislative capacity decreases, courts’ control over the meaning of law increases because Congress is less likely to override the Court’s statutory interpretations through new legislation. As discussed above, the MQD grants the judiciary greater control over statutory interpretation by reducing agencies’ interpretive powers. Richard Hasen argued as early as 2013 that increasing political polarization is likely to grant the judiciary greater power overall.[30] When the Court was asked to interpret the Affordable Care Act, “the Justices knew that the Court’s decision on which provisions of the health care law remained valid would likely be the final word.”[31] Canons of statutory interpretation tend to assume that Congress can and will correct erroneous decisions, and Congress indeed used to do so with regularity. However, the number of legislative overrides, and particularly the number of bipartisan overrides, has steadily decreased since 1970.[32] Particularly as Congress’ legislative capacity decreases and reliance on administrative agencies increases, both the Supreme Court’s and lower courts’ views on which questions are “major” and whether Congress has “spoken clearly” to those questions will be the final word on the matter. As a result, the MQD affords the judiciary greater control over the nation’s policy agenda both through selective identification of major questions and through the clear statement requirement. It is thus doubtful that the MQD will achieve its ostensible goal of returning important policy questions to the legislative process. Instead, those policy questions may simply be transferred from the administrative state to the judiciary, an institution significantly more insulated from democratic influence than regulatory agencies.
In addition to transferring the leadership of the nation’s policy agenda from regulatory agencies to the judiciary, the MQD risks elevating minority control of politics in a subtler way. Deacon and Litman have written persuasively on the potential for lobbyist groups to artificially produce controversy over a policy issue, thus raising the issue to the status of a “major question” and removing it from the sphere of agency regulation.[33] The Court’s opinion in West Virginia treats political controversy as a factor in determining majorness: the EPA’s proposed emission regulation “has been the subject of an earnest and profound debate across the country,” indicating that it is a “major question.”[34] Deacon and Litman observe that the inclusion of this factor may create more opportunities for minority as opposed to majority rule, as it “allows entities to functionally amend statutes through political opposition rather than by doing what would otherwise be required: passing legislation.”[35] For wealthy political lobbyists who already take advantage of the judicial system to supersede democratic legislation, the MQD may simply be another tool to nullify disfavored regulatory action.[36] Given the strength of the clear statement rule articulated in West Virginia, getting a court to recognize a regulation as “major” is a simple and effective way to invalidate that regulation. The MQD’s purported purpose is to ensure that “the national government’s power to make the laws that govern us remains . . . with the people’s elected representatives,”[37]