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How can courts review the decisions of U.S. regulatory agencies?

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lampoon of Interstate Commerce Commission — Administrative law Cartoon depicting a uniformed Interstate Commerce Commission officer shining a large searchlight on U.S. railroad executive Edward Henry Harriman, who is struggling to carry a large load of packages and toy trains, some labeled “merger.”

Courts review the decisions of U.S. regulatory agencies primarily through the framework established by the Administrative Procedure Act (APA) of 1946. This act stipulates the procedures agencies must follow when making and enforcing regulations and defines the scope of judicial oversight.123

Under Section 706 of the APA, a reviewing court is empowered to decide all relevant questions of law, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action. Courts assess these administrative actions against standards of reasonableness and abuse of discretion; if an action is found to be unreasonable or inconsistent with the law, it may be declared null and void.124

Historically, courts often applied the "Chevron doctrine," which required judges to defer to an agency’s reasonable interpretation of ambiguous statutes. However, in June 2024, the U.S. Supreme Court overturned this precedent, ruling that such mandatory deference is inconsistent with the APA. Consequently, courts now hold the primary responsibility for interpreting statutes and determining the validity of agency actions without the requirement to defer to agency expertise on legal questions.12