For crucial federal agencies, the veneer of independence is stripped away

President Trump, shown Tuesday in the Oval Office, praised the decision granting him wide power over historically independent agencies as a necessary expansion of his authority. (Alex Wong / Getty Images)

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• President Trump called the decision the “greatest increase in presidential power in the last 100 years.”
• Some experts question the ruling’s practical impact, noting that existing laws still require political balance on many agency boards.

WASHINGTON — Federal agencies long regarded as pillars of nonpartisan stability are facing an identity crisis after the Supreme Court this week swept away nearly a century of precedent limiting presidential power.

The high court’s decision in Trump vs. Slaughter, allowing the president to remove members of historically independent agencies without cause, has sent shock waves through institutions that once believed their legal protections were secure. And it has raised concerns about the future credibility of agencies that serve crucial public functions, from the Securities and Exchange Commission, which protects investors, to the National Labor Relations Board, which safeguards the rights of private-sector workers.

Some experts question the ruling’s practical impact, noting that existing laws still require political balance on many agency boards. Presidents already wield significant influence over agency leadership. Still, most agree the decision could inject overt partisan politics into agencies that have traditionally resisted it, eroding public trust in their rules and judgment, chilling enforcement and kicking off a cycle of regulatory whiplash.

Already, President Trump has removed members of several independent regulatory bodies and appointed new leadership — including Brendan Carr as chair of the Federal Communications Commission — stoking fear among critics that these agencies are being used to advance the administration’s political priorities.

The ruling, Trump said, is the “greatest increase in presidential power in the last 100 years,” praising the decision as a necessary expansion of his authority.

Now, “the president can fire the principal officers heading these agencies at will,” said Gillian Metzger, a professor of administrative and constitutional law at Columbia University. “That will allow for dramatic swings in policy when administrations of different parties come into office, and seek to undo decisions and policies of prior administrations.”

The Slaughter decision overturned a 1935 ruling from the Supreme Court that found independent agencies — established and mandated by Congress, but housed under the executive — should have special removal protections, reflecting their hybrid roles between branches of government.

That ruling, Humphrey’s Executor vs. United States, found that Congress intended for members of independent bodies to be guarded against the winds of politics, providing long-term stability, professional consistency and nonpartisan expertise.

“Presidents will be more able to direct these agencies to implement particular policies and actions, and the independent decision-making and expertise-based decision-making that Congress intended these agencies to wield will be significantly undermined,” Metzger added. “That, it seems fair to say, is a real blow to the credibility of these entities as independent and expert regulators.”

In a separate opinion this week, the Supreme Court singled out the Federal Reserve as an exception to its otherwise sweeping rollback of protections for independent agencies.

But it leaves bodies like the SEC — created after the 1929 stock market crash to prevent market manipulation, enforce corporate transparency and maintain fair markets — vulnerable to accusations of political capture.

“The SEC has some Fed-like characteristics as a guardian of market confidence and financial stability, but it will not receive Fed-like protections under the two decisions released yesterday,” said George Georgiev, a law professor at the University of Miami and chair of the Investor Advisory Committee to the SEC.

“The practical consequences will depend on how aggressively future administrations use the removal power, and who is appointed to the Commission in the first place,” Georgiev added. “Yesterday’s decisions certainly upend how we think about independent agencies.”

John C. Coffee Jr., a leading authority on securities law at Columbia, said the decision will lead to “a loss of credibility for the SEC.”