A federal appeals court has overturned an earlier decision, reinstating a Biden appointee to the Federal Trade Commission (FTC) who had been dismissed by former President Trump. This ruling marks another chapter in the ongoing tug-of-war between different administrations over the authority to manage independent federal agencies.
In March, President Trump dismissed two Democratic commissioners at the FTC. Following their termination, the ousted commissioner, Rebecca Kelly Slaughter, initiated legal action to regain her position. A federal judge subsequently ruled in her favor, deeming Trump’s dismissal illegal. “President Donald J. Trump is the head of the executive branch and is vested with all of the executive power in our government,” stated Andrew Ferguson, Chairman of the FTC. He emphasized the importance of accountability while wishing Slaughter and her fellow commissioner well.
However, the stakes heightened when a three-judge panel of the D.C. Circuit Court of Appeals ruled in Slaughter’s favor, citing the Supreme Court’s century-old decision in Humphrey’s Executor. That precedent, according to the judges, established limitations on the President’s power to remove commissioners of the FTC, as the law requires cause for such removals. The court reiterated, “Humphrey’s Executor controls this case and binds this court.”
Judge Rao, appointed during the Trump administration, disagreed with the majority decision. She argued that the ruling encroaches on presidential powers, asserting that such a judicial order interferes with the executive branch’s ability to manage independent agencies. “To begin with, the injunction interferes with the President’s exclusive powers,” she contended, criticizing the lower court’s decision for undermining the authority vested in the presidency.
Rao’s dissent underscores a growing divide in the judiciary over executive authority. She highlighted that only the President can remove an FTC commissioner under existing statutes and claimed that the district court’s order effectively instructs remaining commissioners to disregard Trump’s directive.
The reinstatement of Slaughter is emblematic of a larger pattern in which the courts navigate the boundaries of executive power and agency independence. For now, her position remains secure, but the legal battle illuminates the tensions surrounding appointments to regulatory bodies and the significance of precedent in shaping the authority of future administrations. This case will likely have lasting implications, reflecting the ongoing power struggles inherent in American governance.
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