Supreme Court Expands Presidential Authority Over FTC, Other Agencies

The Supreme Court has substantially expanded presidential authority over independent federal agencies, ruling that the president may remove commissioners from multi-member agencies like the Federal Trade Commission (FTC) without the statutory protections Congress established.

The 6-3 decision marks a significant shift in the constitutional relationship between the executive branch and agencies, writes Amy Howe of SCOTUSblog.

A 1935 precedent, Humphrey’s Executor v. United States, permitted Congress to shield certain independent agency officials from removal except for specific cause, such as neglect of duty or malfeasance. That framework underpinned the structure of numerous federal bodies.

Trump v. Slaughter arose after Trump removed a sitting FTC commissioner from office without any cited statutory justification, prompting litigation that ultimately reached the Supreme Court.

Writing for the majority, Chief Justice Roberts concluded that the FTC now exercises substantial executive power, including investigative authority, in-house adjudication, and the ability to initiate civil litigation, which distinguishes it from the limited version of the agency considered in the original 1935 ruling.

The Court held that officials exercising such executive functions must remain removable by the president to preserve accountability within the executive branch, expressly overturning the earlier precedent.

Justice Sonia Sotomayor’s dissent, joined by two colleagues, warned the decision effectively converts numerous independent commissions, including agencies overseeing energy, consumer safety, and nuclear regulation, into arms of executive authority subject to unchecked presidential control.

Justice Neil Gorsuch’s concurrence argued the ruling did not go far enough in restoring separated powers.

The case, litigated initially in the U.S. District Court for the District of Columbia and reviewed by the D.C. Circuit, illustrates how jurisdictional risk in constitutional challenges can shift rapidly once Supreme Court review is granted.

Counsel advising clients before independent agencies should reassess enforcement trends and regulatory approval processes. Commissioner turnover driven by presidential preference may now affect agency priorities and continuity.