In June, the Supreme Court made the decision to overturn the legal precedent known as Chevron deference. The Chevron deference reversal marks a significant shift in administrative law with broad implications for various sectors, including housing, and public health.

Chevron deference, established in 1984 by the landmark case Chevron U.S.A. Inc. v. Natural Resources Defense Council Inc., required courts to defer to a federal agency’s interpretation of ambiguous statutory language as long as it was reasonable. The Chevron deference reversal has the potential to negatively affect health equity, particularly through its effects on housing policies and regulations.

Understanding the Chevron Deference Reversal

The Chevron deference decision was a cornerstone of administrative law, enabling federal agencies like the Department of Housing and Urban Development (HUD) and the Department of Health and Human Services (HHS) to interpret and implement complex regulations from a position of authority. This flexibility allowed agencies to address evolving challenges and adapt to new scientific evidence and changing circumstances efficiently.

The Supreme Court’s decision about the Chevron deference reversal shifts the power to interpret ambiguities in laws and regulations to the courts. Now, agencies will have to delay their work as they wait for court rulings to clarify legal ambiguities. Private parties, industry groups, or states may also bring more legal challenges to these regulations, causing further delays as agencies wait out and engage in litigation.

One example of the flexibility Chevron deference granted agencies is HUD’s interpretation of the Fair Housing Act (FHA). The act prohibits housing discrimination but leaves open the possibility of argument around the meaning and intent of the phrase “disparate impact”— policies that are neutral at face value but lead to discrimination in practice. In 2013, HUD issued a rule clarifying that disparate impact claims could be brought under the FHA. While the courts had generally agreed, there was variation in how the standards were applied before HUD’s rule. The new standard ensured that claims would be evaluated using the same criteria across the board.

Read the full article about the Chevron deference reversal by Zachary Travis at Shelterforce.