Supreme Court Faces High-Stakes Week

Key Concepts

• Administrative State: The system of government agencies (like the FTC) that exercise executive, legislative, and judicial powers.
• For-Cause Removal: A legal standard requiring a president to have a specific, justifiable reason (such as misconduct) to fire an official, rather than firing them at will.
• Birthright Citizenship: The legal principle, rooted in the 14th Amendment, that individuals born on U.S. soil are automatically citizens, regardless of their parents' status.
• Subject to the Jurisdiction Thereof: The constitutional phrase defining the scope of birthright citizenship; historically interpreted to include almost everyone born on U.S. soil.
• Executive Power: The authority vested in the President by the Constitution to enforce laws and manage the executive branch.

---

1. The Federal Reserve and Lisa Cook Case

The Supreme Court is currently deliberating whether President Trump can unilaterally remove Federal Reserve Governor Lisa Cook while she faces allegations of mortgage fraud.

• Key Issue: The case centers on the independence of the Federal Reserve. The President argues he has the authority to remove her, while Cook denies the allegations.
• Court’s Stance: During January arguments, the Court expressed skepticism regarding the President’s power to remove a governor before she has had the opportunity to defend herself against allegations.
• Potential Outcome: Greg Stohr suggests the Court may issue a "narrow decision" that allows Cook to remain in office without establishing a broad, sweeping precedent regarding the President’s general removal powers.

2. The FTC Commissioner Case (Slaughter v. Trump)

This case challenges the structure of independent federal agencies, specifically the Federal Trade Commission (FTC).

• Historical Context: The case references a 1935 precedent that established that Congress can create independent agencies where commissioners cannot be fired without "good cause."
• The Argument: The President contends that because these agencies exercise executive power, he should be able to fire their heads for any reason if they do not align with his policy preferences.
• Distinction: The Court has previously indicated that the Federal Reserve is distinct from other agencies. Therefore, a ruling against the FTC’s independence may not necessarily apply to the Federal Reserve, keeping the Lisa Cook case in a separate legal category.

3. Birthright Citizenship Challenge

The Trump administration issued an executive order attempting to limit birthright citizenship to children born to at least one U.S. citizen or green card holder.

• Constitutional Conflict: The 14th Amendment grants citizenship to those born in the U.S. and "subject to the jurisdiction thereof." The administration’s order seeks to overturn over a century of legal precedent.
• Practical Challenges: The Court expressed concern that the policy would be "not administrable." Hospitals would be forced to verify parental citizenship status, creating a massive bureaucratic burden and leaving the citizenship status of children in legal limbo.
• Legal Precedent: The Court is being asked to ignore long-standing case law, including references to the Dred Scott decision and the Chinese Exclusion Act.

4. Synthesis and Conclusion

The Supreme Court is currently navigating a tension between the expansion of executive authority and the preservation of established administrative and constitutional norms.

• Key Takeaway: Despite the Court’s conservative composition, the arguments presented in both the Lisa Cook case and the birthright citizenship case suggest that the justices are wary of granting the President unchecked power.
• Timeline: Decisions are expected to be handed down by the end of the current week (Tuesday, Wednesday, or Thursday). It is highly unlikely that the Court will delay these rulings beyond the 4th of July, as the Court typically concludes its term by early July.