Supreme Court Decision: Trump’s Power to Dismiss Independent Agency Board Members – What It Means for You

The U.S. Supreme Court recently allowed President Trump to temporarily fire the heads of the National Labor Relations Board (NLRB) and the Merit Systems Protection Board (MSPB). This decision came with a 6-3 vote, with some justices dissenting.

In this case, Trump aimed to remove Gwynne Wilcox from the NLRB and Cathy Harris from the MSPB. Both had term lengths remaining—three and four years, respectively. By law, these positions are meant to be protected from dismissal without cause, which means bad behavior is required for such actions.

This issue isn’t new. In 1933, President Franklin Roosevelt fired FTC member William Humphrey, but the Supreme Court later ruled that presidents could only dismiss members of independent agencies for misconduct. This ruling helped establish protections that have shaped how independent federal agencies function.

Currently, the Supreme Court has a conservative majority that has challenged this precedent without fully overturning it. In 2020, the court allowed Trump to dismiss the head of the Consumer Financial Protection Bureau, suggesting a change in how these protections may be viewed.

Justice Brett Kavanaugh has openly criticized the Humphrey ruling, believing it limits the president’s authority. Similarly, Justice Neil Gorsuch has argued that too many independent agencies weaken the executive branch.

The recent ruling signals a possible shift in how these regulations will be interpreted in the future. Markets have reacted nervously, especially regarding fears about potential presidential power over the Federal Reserve.

In dissent, Justice Elena Kagan highlighted the importance of precedent, emphasizing that the decision favors the president over established rules.

This ongoing legal battle raises important questions about the separation of powers and the future of independent agencies in America. Policies that were once stable may now face significant changes, reshaping how these boards operate moving forward. For more on the role of independent agencies, you can explore the Congressional Research Service for related insights.

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