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Supreme Court Hears Trump’s FTC Firing Case, Putting 90-Year Precedent at Risk

The outcome could upend for-cause protections across dozens of boards, with a separate Federal Reserve dispute to follow in January.

Overview

  • Justices heard arguments Monday in Trump v. Slaughter over President Trump’s March removal of FTC commissioner Rebecca Kelly Slaughter despite a 1914 law allowing firings only for inefficiency, neglect of duty or malfeasance.
  • The court is weighing whether to overturn Humphrey’s Executor, the 1935 decision that permits Congress to insulate multi-member independent agencies from at-will presidential removal.
  • The administration presses a unitary-executive theory granting broad removal authority, while Slaughter’s side argues Congress can design independent bodies to ensure continuity and bipartisanship.
  • A second issue asks whether courts may order reinstatement for unlawful removals, a remedy question that could shape the upcoming case over Federal Reserve Governor Lisa Cook.
  • Lower courts ruled Slaughter’s firing unlawful and ordered relief, but the Supreme Court allowed her ouster to take effect and has permitted other contested removals, with a final decision expected by June 2026.