Briefly

US Supreme Court Allows Trump to Fire FTC Commissioner

Case LawUnited States·SCOTUSblog·Briefly Analysis

Abstract

The United States Supreme Court, in a landmark 6-3 decision in *Trump v. Slaughter*, has significantly expanded presidential power by ruling that the President can remove commissioners of the Federal Trade Commission (FTC) at will. This decision overturns the 91-year-old precedent set in *Humphrey's Executor v. United States*, which had upheld statutory 'for cause' removal protections for independent agency heads. The Court found that the FTC's 'for cause' removal provision violated the constitutional separation of powers, reinforcing the 'unitary executive' theory. This ruling grants the President sweeping new authority over multi-member independent agencies, potentially reshaping the landscape of federal regulatory governance and increasing political influence over bodies previously designed for insulation from direct executive control.

Introduction

In a pivotal ruling that redefines the balance of power within the U.S. federal government, the Supreme Court of the United States, on June 29, 2026, delivered a 6-3 decision in *Trump v. Slaughter*. This judgment grants the President the authority to remove commissioners of the Federal Trade Commission (FTC) without cause, effectively dismantling a long-standing statutory safeguard intended to ensure the independence of such agencies. The Court's decision marks a profound shift in constitutional law, overturning the venerable precedent established in *Humphrey's Executor v. United States*, 295 U.S. 602 (1935), which had for decades affirmed Congress's power to limit presidential removal of certain officers.

This ruling carries immense implications for the structure and operation of numerous federal agencies designed to operate with a degree of independence from direct political influence. By affirming the President's at-will removal power over FTC commissioners, the Court has bolstered the 'unitary executive' theory, which posits that the President should have complete control over the executive branch. For legal practitioners, this decision necessitates a re-evaluation of how independent agencies function, how their leadership is appointed and removed, and the potential for rapid shifts in regulatory policy aligned with the priorities of a sitting administration. This article will delve into the background of presidential removal power, analyze the Supreme Court's reasoning in *Trump v. Slaughter*, and explore the far-reaching consequences for the regulatory state and legal practice.

Background

The question of presidential removal power has been a recurring theme in American constitutional law, rooted in the separation of powers doctrine enshrined in the U.S. Constitution. Article II vests the 'executive Power' in the President, but it does not explicitly define the scope of the President's authority to remove officers. Historically, Congress has sought to create agencies that operate with a measure of independence from direct presidential control, particularly those exercising quasi-legislative or quasi-judicial functions. The Federal Trade Commission, established by the Federal Trade Commission Act, 15 U.S.C. § 41 et seq., is a prime example.

Central to the debate was the FTC Act's provision stating that commissioners could only be removed by the President for 'inefficiency, neglect of duty, or malfeasance in office.' This 'for cause' removal protection was famously upheld in *Humphrey's Executor v. United States*, 295 U.S. 602 (1935). In that case, President Franklin D. Roosevelt attempted to remove FTC Commissioner William Humphrey for policy disagreements, despite the statutory limitations. The Supreme Court unanimously ruled that such a removal was unconstitutional, distinguishing between purely executive officers, whom the President could remove at will, and officers of independent agencies performing quasi-legislative and quasi-judicial duties, whose independence Congress could legitimately protect. This precedent became the bedrock for the constitutional legitimacy of independent agencies, allowing them to develop expertise and make decisions free from immediate political pressure. More recently, the Court in *Seila Law LLC v. Consumer Financial Protection Bureau*, 591 U.S. 197 (2020), addressed removal power over a single-director agency, finding its 'for cause' removal provision unconstitutional, but leaving the *Humphrey's Executor* precedent for multi-member bodies intact at the time.

Analysis

The Supreme Court's decision in *Trump v. Slaughter* directly confronted and ultimately overruled the core holding of *Humphrey's Executor*. Chief Justice John Roberts, writing for the 6-3 majority, asserted that the FTC's 'for-cause' removal provision was 'contrary to the separation of powers enshrined in the Constitution.' The majority reasoned that because the FTC unquestionably exercises executive power—including promulgating substantive rules, conducting investigations, initiating enforcement actions, and adjudicating disputes—it must be controlled by the Chief Executive, in whom such power is vested. This perspective aligns squarely with the 'unitary executive' theory, which advocates for the President's comprehensive control over the executive branch and the ability to remove any subordinate exercising executive power at will.

The Court explicitly stated that *Humphrey's Executor* had not 'withstood the test of time' and described it as 'a result in search of a rationale,' concluding that *stare decisis* considerations did not justify its retention. This repudiation of a nearly century-old precedent signifies a significant reinterpretation of the constitutional framework governing independent agencies. The majority emphasized that the President 'must have the assistance of officers he can trust' and that neither Congress nor the courts may 'saddle him with those with whom he cannot work.' This reasoning effectively eliminates the distinction between purely executive officers and those performing quasi-legislative or quasi-judicial functions, which was central to the *Humphrey's Executor* decision.

Notably, the Court issued a separate, concurrent decision in *Trump v. Cook*, which declined to permit the President to remove a Federal Reserve Governor, signaling that the Federal Reserve may occupy a constitutionally distinct status due to its 'historical tradition' and 'unique role' in monetary policy. This distinction suggests that while the presidential removal power has been significantly expanded for agencies like the FTC, it may not be universally applicable to all bodies previously considered independent. The implications for other multi-member independent agencies, such as the National Labor Relations Board (NLRB) and the Merit Systems Protection Board (MSPB), which also have 'for cause' removal protections, are likely to be profound, as the Court's reasoning in *Slaughter* could extend to them.

Justice Sonia Sotomayor, in a dissenting opinion, criticized the majority for 'egregiously wrong' reasoning that 'promises to unleash only chaos' and 'reshapes our government.' The dissent highlighted concerns that the decision prioritizes the political preferences of the President over the need for independent agencies to carry out their enforcement and regulatory functions impartially and consistent with the law. The ruling effectively transforms the nature of these agencies, making their leadership directly accountable to the President's policy agenda rather than to their statutory mandates alone.

Conclusion

The Supreme Court's decision in *Trump v. Slaughter* represents a monumental shift in the constitutional architecture of the U.S. federal government, fundamentally altering the relationship between the President and multi-member independent agencies. For legal practitioners, this ruling ushers in an era of heightened political influence over regulatory bodies previously insulated by 'for cause' removal protections. Attorneys advising clients in regulated industries must now contend with the increased potential for rapid and significant policy changes within agencies like the FTC, as new administrations will have the unfettered ability to appoint leadership aligned with their political and policy objectives.

Practitioners should closely monitor the fallout from this decision, including potential challenges to the removal provisions of other independent agencies and any legislative responses aimed at reasserting congressional authority or restructuring agencies to mitigate direct presidential control. The distinction drawn for the Federal Reserve in *Trump v. Cook* also warrants careful attention, as it may provide a narrow avenue for arguing continued independence for certain uniquely structured or purposed bodies. Advising clients will increasingly involve assessing the political climate and potential executive branch priorities, as the stability and predictability of regulatory enforcement may become more susceptible to shifts in presidential power. This decision underscores the dynamic nature of constitutional interpretation and its immediate, tangible impact on the practical realities of governance and legal compliance.

Citations

  1. 1.Humphrey's Executor v. United States, 295 U.S. 602 (1935)
  2. 2.Seila Law LLC v. Consumer Financial Protection Bureau, 591 U.S. 197 (2020)
  3. 3.Trump v. Slaughter, No. 25-332 (U.S. June 29, 2026)
  4. 4.Trump v. Cook, No. 25A312 (U.S. June 29, 2026)
  5. 5.Federal Trade Commission Act, 15 U.S.C. § 41 et seq.
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