A federal judge has reinstated a Democratic member of the Federal Trade Commission (FTC), ruling that President Donald Trump unlawfully fired her earlier this year as part of his efforts to assert greater control over independent governmental agencies. U.S. District Judge Loren AliKhan issued her ruling late on Thursday, asserting that federal law shields FTC commissioners from removal by the president without just cause. This ruling references a significant 1935 U.S. Supreme Court decision regarding the FTC.
The decision enables Rebecca Kelly Slaughter to return to her role as a commissioner. The FTC's official website acknowledged her return by Friday morning, listing her among the four current commissioners. Following the ruling, attorneys representing the Trump administration quickly announced their intent to appeal the decision, with the possibility that the matter could reach the Supreme Court. This conservative-led court has previously limited the scope of the nine-decade-old Humphrey’s Executor decision, and some justices have suggested that they may overturn it altogether.
The Supreme Court has also allowed Trump to dismiss the heads of other independent agencies, demonstrating a trend where his administration seeks to reshape leadership structures. For example, in May, the court granted Trump the authority to remove members of both the National Labor Relations Board and the Merit Systems Protection Board, in spite of lower court rulings that indicated Humphrey’s Executor should remain protective against arbitrary dismissals. Currently, the justices are deliberating an emergency appeal from the administration which seeks the ousting of three Democratic members from the Consumer Product Safety Commission. Trump dismissed them in May, but they were restored to their positions by a federal judge shortly thereafter.
This ongoing legal conflict regarding agency firings may extend to the Federal Reserve, particularly concerning the potential for Trump to dismiss Fed Chairman Jerome Powell. The justices hinted in May that Trump might not have the same authority over the Fed as over other agencies, describing it as “a uniquely structured, quasi-private entity.” In her opinion, Judge AliKhan emphasized her obligation to follow the precedent set by the Humphrey’s Executor decision, which previously limited presidential power to dismiss FTC commissioners, allowing removal only for established cause rather than at the president’s discretion.
AliKhan remarked that her ruling was intended to uphold “clearly established law enacted by a coequal branch of government,” an assertion that has been acknowledged by numerous administrations over the past ninety years. However, she noted that her ruling likely would not be the final word on this matter, as the defendants remain free to appeal to the Supreme Court regarding the Humphrey’s Executor precedent. Trump dismissed Slaughter and fellow Democratic commissioner Alvaro Bedoya in March, claiming their roles were incompatible with his administration’s agenda. While Slaughter's term still has four years remaining, Bedoya tendered his resignation in June, which AliKhan subsequently dismissed in her ruling.
Following the ruling, Slaughter expressed her eagerness to resume her duties, stating, “As the Court recognized today, the law is clear, and I look forward to getting back to work.” During a court hearing in May, attorneys representing the plaintiffs cautioned against granting the president “absolute removal power over any executive officer,” arguing it would undermine an important check on presidential authority. They asserted that such a power dynamic had never been established in the United States.
Opposition lawyers contended that a politicized FTC could potentially benefit large corporations at the expense of consumer welfare. In contrast, the Trump administration attorneys argued that the role of the FTC has evolved since the 1930s and, therefore, its members should be held accountable to the president directly. Justice Department lawyer Emily Hall articulated during the hearing that “the president should be able to remove someone who is actively blocking his policies.” AliKhan, who was appointed to the federal bench by President Joe Biden in 2023, noted that previous presidents had refrained from attempting to overreach in this manner.
The process for appointing commissioners involves nomination by the president and confirmation by the Senate, with commissioners serving staggered seven-year terms to avoid concurrent vacancies. They can only be dismissed for specific misconduct, including inefficiency and neglect of duty. Trump justified his dismissal of Bedoya and Slaughter by stating their service was inconsistent with his administration's priorities, as outlined in the lawsuit.
