Supreme Court Overrules 1935 Precedent on Presidential Removal of Agency Officials

The Supreme Court held that Article II of the Constitution allows the president to remove members of the Federal Trade Commission for any reason or no reason. The ruling extends the same authority to members of other independent regulatory agencies.

The decision explicitly overruled Humphrey's Executor v. United States, a 1935 case that had required cause for removal of commissioners. The Court stated that the earlier precedent no longer limits presidential authority over these positions.

Background on the Case A Democratic commissioner appointed by former President Biden and another Democratic commissioner were removed from the FTC early in President Trump's second term. No specific allegations of misconduct or incapacity were cited in the removals.

The Court noted that presidents already appoint commission members and designate chairs, who can be replaced at any time. The new ruling removes the remaining statutory restriction on removal.

Gorsuch wrote that the decision ends what some have called the fourth branch of government. He added that the ruling does not limit powers Congress has already delegated to the agencies. The decision allows a president to reduce an agency's membership below the level required for a quorum, preventing the agency from taking formal action.

It also permits replacement of minority-party commissioners, altering the partisan balance on multi-member commissions.