As the U.S. courts continue to see challenges to executive orders stemming from the current administration, a central point of contention arises around a pivotal 1935 Supreme Court decision, Humphrey’s Executor v. United States. This case established limits on the president’s power to remove heads of independent agencies without cause, thereby ensuring their independence from political influence. However, current legal proceedings highlight a potential shift as the Trump administration seeks to challenge this long-standing precedent.
Two recent legal developments underscore this emerging battle. The U.S. Court of Appeals for the District of Columbia Circuit recently ordered the reinstatement of Cathy Harris and Gwynne Wilcox, who were dismissed from their positions on the Merit Systems Protection Board and National Labor Relations Board, respectively. Both firings resisted the for-cause removal protections established by Humphrey’s Executor. However, this was swiftly contested as Chief Justice John Roberts placed these reinstatements on hold upon the administration’s appeal to the Supreme Court.
The core of the debate lies in whether the Supreme Court will opt to overturn Humphrey’s Executor, thereby expanding presidential power to include the removal of agency heads without needing a justification such as “malfeasance in office.” This action is supported by some conservative scholars who argue for a broader view of executive power. However, concerns arise over the implications for the independence of critical agencies, such as the Federal Reserve, that are significant players within the financial system.
The potential overhaul of Humphrey’s Executor could also heavily impact other multi-member-headed agencies including the SEC and FCC. As SCOTUSblog reports, there is caution among justices, recognizing the importance of agency independence, particularly for economic stability. Nonetheless, with ongoing cases like those of Harris and Wilcox pressing the issue, the Supreme Court may soon face a decision that redefines the delicate balance between presidential power and agency independence.