Corner Post v. Board of Governors
Is the Supreme Court Restoring Balance and Reining In the Bureaucracy?
Hi friends,
Many of us have been learning - the hard way - the perils of the administrative state and how far America has moved from the Constitution.
We’ve seen, over the last several months, some ‘clawback’ of the power of unelected and unchecked bureaucracy. (This FEMA instance for example.)
Below is the story of a little-publicized case, Corner Post v. Board of Governors, recently decided by the Supreme Court that will make a big difference to:
Small businesses and new market entrants
States pushing back against federal overreach
Future challenges of regulations from a fresh angle
This is a win for We the People.
The Promise of a Constitutional Republic
Our Founders designed a government that would be limited, accountable, and rooted in the consent of the governed. In their vision, power would be divided between three co-equal branches, each restrained by checks and balances. Laws would be made by the people’s elected representatives in Congress, executed by the President, and interpreted by independent courts. This framework — “of the people, by the people, for the people” — was meant to protect liberty and ensure that no unelected class could rule from above.
But over the past century, that design has quietly eroded.
The Rise of the “Administrative State”
In theory, Congress writes laws, and the executive branch enforces them.
In practice, Congress has delegated much of its lawmaking power to federal agencies, which now issue thousands of binding rules and regulations each year — often without meaningful oversight or accountability.
This structure is now commonly referred to as the “administrative state” — a fourth branch of government in all but name.
What Is the Administrative State?
The term refers to the alphabet soup of agencies that now dominate federal policy:
EPA (Environmental Protection Agency)
SEC (Securities and Exchange Commission)
HHS (Health and Human Services)
OSHA, FDA, IRS, DOE, ATF, and dozens more…
These agencies:
Write regulations (often with the force of law),
Enforce those rules (conduct investigations, levy fines, shut down businesses),
And sometimes judge disputes internally (using administrative law judges or in-house tribunals).
That means the same agency can:
Define what counts as illegal,
Investigate you for it,
Decide you’re guilty,
Punish you — all without a neutral judge or jury,
And it’s not even a law passed by Congress.
How Did This Happen?
The administrative state didn’t appear overnight. It grew in waves:
Growth of the Administrative State
At each stage, Congress punted decisions to agencies rather than taking political risks themselves — and the courts often deferred to the bureaucrats. (That was the power of the Chevron Doctrine, which the Supreme Court rightfully overturned with Loper Bright Enterprises v. Raimondo on June 28, 2024.)
The Constitutional Cost
This quiet revolution has produced a system where:
Most binding federal rules are not passed by Congress.
Citizens and small businesses have little recourse when harmed.
Presidents struggle to remove entrenched officials who oppose their agenda.
Courts routinely defer to the very agencies in question when disputes arise.
Even legal experts on the left and right agree:
“The administrative state is now the real center of power in Washington.” – paraphrased from Philip Hamburger, Columbia Law School.
The Disconnect
So we ask: If the Constitution established three branches of government, where did this fourth one come from?
More importantly:
Who really governs us now — elected representatives, or unelected regulators?
Now, as you’ll read, there’s apparently a new game in town. Let’s hope that the recent return to Constitutionalism continues.
The Legal Reawakening — Clawing Back Power From the 4th Branch
For four decades, the administrative state expanded quietly, often without headlines or hearings. Congress delegated. Agencies regulated. Courts deferred.
But in the past two years, a legal reawakening has begun.
The U.S. Supreme Court, under its current constitutionalist majority, has launched what some call a “clawback” — not just of budgetary misuses (like FEMA’s recent withdrawal of migrant housing funds from New York), but of power itself. These rulings signal a return to the original architecture of American government — where laws come from Congress, enforcement from the President, and interpretation from the judiciary.
What Corner Post v. Board of Governors Was About (Decided July 1, 2024)
Corner Post, a small North Dakota truck stop, wanted to challenge a Federal Reserve rule on debit card transaction fees — even though the rule had been in place since 2011. The government said the lawsuit came too late because the six-year statute of limitations had expired.
But Corner Post argued: We didn’t even exist in 2011. We couldn’t have sued until the rule actually harmed us.
In a 6–3 decision, the Court sided with Corner Post.
The statute of limitations begins not when the rule is issued — but when a business is first injured by it.
Why it matters:
Empowers small businesses and newcomers: They now have a right to challenge rules that predate them.
Weakens the “regulatory fortress”: Agencies can no longer hide behind the age of their rules.
Opens the door: We will likely see a surge of lawsuits against older rules — from agriculture to banking to healthcare.
Real-World Impact:
Banking coalitions and state AGs immediately began coordinating new challenges to older financial regulations.
Legal scholars noted this would “dramatically reshape the litigation calendar for every federal agency.”
Together with Jarkesy, these cases mark a turning point. The judiciary is finally asserting its independence from unelected regulators. Power is beginning to shift back to Congress, back to the courts, and most importantly, back to the people.
What the Legal Clawback Means for Americans
The idea of reining in the administrative state might sound abstract — a courtroom battle over obscure rules or judicial doctrines. But the consequences are anything but theoretical.
These Supreme Court decisions are already reshaping how power is used in America — and who gets to use it.
Let’s break it down.
For Families and Individuals: More Voice, Less Force
What changes: Rules that impact your healthcare, education, or freedom of movement are now more open to challenge — and must be grounded in clear law.
Why it matters: During COVID, federal health agencies issued sweeping mandates with little debate. Without court challenges, similar orders could return.
Post-Chevron impact: Courts can no longer just “defer” to an agency’s claim of authority. They have to ask: Did Congress actually give them this power?
Example: Mask mandates on planes, vaccine requirements for children, or changes to school meal standards now face higher legal hurdles.
For Small Businesses: Relief from Bureaucratic Burden
What changes: Agencies can’t indefinitely hide behind old rules or ever-expanding interpretations.
Why it matters: Businesses often face compliance costs, surprise audits, and penalties for rules they never knew existed — or couldn’t afford to fight.
Post-Corner Post impact: A family farm or a new trucking company can now challenge a regulation that’s harming them — even if the rule is decades old.
Example: A small grocer penalized by USDA rules from 1996 now has standing to sue — thanks to Corner Post.
For Elected Officials: Accountability Is Back in Style
What changes: The President regains more control over the executive branch.
Why it matters: Voters expect presidents to deliver results — but that’s nearly impossible if entrenched regulators are immune from removal.
Humphrey’s Executor (1935)
This is another domino that may fall. Several ‘experts’ have been speculating about it. Humphrey’s Executor is the albatross that some judges are using to forbid President Trump from firing certain federal employees.
Currently independent agencies (like FTC, SEC, Fed) are protected from presidential removal.
What this limits: Presidents can’t fully control executive policy; unelected commissioners hold long-term power.
Overturning it would restore the president’s ability to remove agency heads and reinforce the Constitution’s Article II structure.
Example: A newly elected administration could swiftly instill or revise policies at the CDC or Department of Education — without being blocked by unelected holdovers.
For the Courts: No More Rubber Stamps
What changes: Judges are forced to actually judge again.
Why it matters: Under Chevron, courts routinely sided with agencies out of habit, not legal reasoning.
Now: Judges must apply independent analysis, giving citizens a fairer shot in court.
Example: A property owner battling the EPA over a supposed wetlands violation no longer faces an uphill battle based on “agency interpretation.”
For the Balance of Power: A Return to the Constitution
What changes: The three original branches — legislative, executive, and judicial — are beginning to function again as intended.
Why it matters: When agencies act as lawmakers, enforcers, and judges, the American people lose every check on power.
Now: That power is being clawed back, one case at a time.
Example: The federal government recently clawed back $80 million in FEMA funds from New York City for misusing migrant housing funds — a sign that even financial power is being refocused and challenged.
These Wins Are for Everyone
This isn’t about left or right. It’s about self-government.
Do the rules that govern your life come from people you can vote for — or from faceless bureaucrats you’ve never heard of?
The recent Supreme Court decisions don’t just fix technical issues. They represent a restoration of American sovereignty — at the individual, local, and constitutional level.
We are watching a rare moment of re-alignment. And for once, it’s in the direction of the people.
So, my friends, there is some justice, and we must keep the battle going.
"The condition upon which God hath given liberty to man is eternal vigilance."
-John Philpot Curran (Irish statesman, 1790s, cited by American founders)
God bless you, God bless President Trump and team, and God bless America!
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