Administrative Law: Federal Agencies and Rulemaking

Administrative Law

What Is Administrative Law?

Administrative law governs the creation and operation of federal agencies and their exercise of power. Agencies like the EPA, FDA, SEC, FCC, and IRS create and enforce regulations that affect nearly every aspect of American life.

The Administrative Procedure Act (APA)

The APA (1946) is the foundational statute governing federal agency procedures:

Notice-and-Comment Rulemaking (Informal):

Agency publishes a proposed rule in the Federal Register

Public comment period (typically 30-90 days)

Agency reviews comments and publishes the final rule with a "basis and purpose" statement

Rule takes effect after a waiting period (usually 30 days)

Formal Rulemaking: Requires a trial-like hearing with evidence and cross-examination. Rarely used today.

Chevron Deference

Historically, courts deferred to reasonable agency interpretations of ambiguous statutes (Chevron v. NRDC, 1984). In Loper Bright Enterprises v. Raimondo (2024), the Supreme Court overruled Chevron, requiring courts to exercise independent judgment in interpreting statutes.

Judicial Review

Courts can review agency actions under the APA:

Arbitrary and Capricious Standard: The most common standard — the court checks whether the agency considered the relevant factors and made a reasonable decision

Substantial Evidence: Used for formal proceedings — whether a reasonable mind could accept the evidence as adequate

De Novo Review: The court reviews the facts independently (rare)

Agency Adjudication

Agencies also act like courts in individual cases:

Administrative Law Judges (ALJs) preside over hearings

Due process protections apply (notice, hearing, impartial decision-maker)

Decisions can be appealed within the agency and then to federal court