The US Supreme Court on Monday (June 29) handed President a major victory by upholding his dismissal of Federal Trade Commission (FTC) Commissioner Rebecca Slaughter, overturning a landmark 1935 precedent that had protected leaders of certain independent federal agencies from being removed.
In a 6-3 ruling, the justices struck down statutory tenure protections for FTC commissioners, significantly expanding presidential authority over independent regulatory agencies.
Court overturns 1935 precedent
The court ruled that lawfully removed FTC Commissioner Rebecca Slaughter, reversing lower court decisions that had reinstated her.
In doing so, the justices overturned the 1935 ruling in Humphrey’s Executor v. United States, which had allowed Congress to protect leaders of certain independent regulatory agencies from being fired without cause.
The decision significantly expands presidential authority over executive agencies.
Why was Rebecca Slaughter fired?
dismissed Slaughter in March 2025, citing policy differences.
Slaughter, who was appointed by former President Joe Biden, argued that federal law only allows FTC commissioners to be removed “for cause,” such as inefficiency, neglect of duty or misconduct—not political disagreements.
Her term was scheduled to run until 2029.
Why did the court overturn the precedent?
The majority concluded that today’s FTC exercises substantial executive authority and therefore falls under the president’s constitutional power to supervise the executive branch.
What was Humphrey’s Executor?
The ruling overturns one of the Supreme Court’s most influential decisions on presidential power.
In Humphrey’s Executor v. United States (1935), the court held that President Franklin D. Roosevelt could not remove an FTC commissioner simply because of policy disagreements.
The decision established that Congress could create independent agencies whose leaders enjoy protection from dismissal except for specific reasons.
For more than 90 years, that precedent helped preserve the independence of agencies such as the FTC, National Labor Relations Board (NLRB), and Merit Systems Protection Board (MSPB).
Trump hails ruling as ‘BIG WIN’
, calling it a “BIG WIN” in a post on Truth Social.
said the ruling confirmed the president’s authority under Article II of the US Constitution to remove executive branch officers and agency appointees.
“BIG WIN just moments ago at the Supreme Court, in the Slaughter Case, confirming Presidential Power… to remove Executive Branch Officers and Agency Appointees,” Trump wrote.
He described the judgment as a “Historic and Unprecedented Ruling,” saying US presidents had sought such a decision since the 1930s. Trump added that it was “one of the most important ever given with respect to Presidential Powers.”
Why is the Federal Reserve treated differently?
Although the court expanded presidential power over the FTC, it drew a clear distinction for the Federal Reserve.
On the same day, the , leaving her in office while litigation continues.
The justices described the as having a “unique historical tradition” and indicated that its independence remains protected.
That distinction suggests the court views the central bank differently from other regulatory agencies because of its critical role in setting monetary policy and maintaining financial stability.
