The Supreme Court on Friday handed down a landmark 6-3 decision in Slaughter v. FTC, ruling that the president has the authority to fire the heads of independent federal agencies without cause. The ruling strikes down statutory protections that had shielded leaders of agencies such as the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC), and the National Labor Relations Board (NLRB) from at-will removal.
Case Background and Key Holdings
The case originated when former President Donald Trump removed FTC Commissioner Christine Slaughter in 2020, citing policy disagreements. Slaughter challenged her firing, arguing that the FTC Act's for-cause removal provision protected her. The Supreme Court disagreed, with Chief Justice John Roberts writing for the majority that such restrictions violate Article II of the Constitution, which vests executive power in the president.
According to the majority opinion, "The president must have control over the execution of the laws, and that includes the power to remove those who assist him." The ruling effectively eliminates for-cause removal protections for single-headed agencies and most multi-member commissions, though it leaves intact protections for judges and certain inferior officers.
Impact on Federal Agencies
The decision affects over a dozen independent agencies, including the FTC, SEC, NLRB, Consumer Financial Protection Bureau, and Federal Communications Commission. Approximately 2,000 agency heads and commissioners now serve at the pleasure of the president, according to the Congressional Research Service. Critics warn this could politicize regulatory decisions, while supporters argue it enhances democratic accountability.
Justice Elena Kagan dissented, joined by Justices Sonia Sotomayor and Ketanji Brown Jackson, writing that "Congress designed these agencies to be insulated from political pressure to ensure expertise and fairness. Today's decision upends a century of settled precedent." The dissent cited the 1935 case Humphrey's Executor v. United States, which had upheld for-cause removal for FTC commissioners.
Reactions and Next Steps
Former President Trump praised the decision, stating it "restores the constitutional balance." Current President Joe Biden's administration expressed concern, with White House Press Secretary Karine Jean-Pierre saying, "We are reviewing the ruling and assessing its impact on independent regulation." Legal experts anticipate a flurry of litigation as agencies adjust to the new landscape.
The ruling does not apply retroactively, meaning past firings remain valid. However, it opens the door for future presidents to remove agency heads at will, potentially reshaping federal regulation for decades to come.
