Decision leaves large swath of long-standing government programs and protections more vulnerable to far-right legal attacks

Washington, DC – Today, six justices on the U.S. Supreme Court issued a ruling in Corner Post, Inc. v. Board of Governors of the Federal Reserve System that will allow more extremist attacks against long-standing regulations relied upon by small businesses and for the functioning of the federal government. 

“The Supreme Court dealt a blow to people and communities across the nation, opening up a Pandora’s box of attacks on settled policies and regulations that have been on the books for years. Today’s decision presents serious dangers for the American people, our overall democracy, and could lead to economic destabilization as regulatory certainty has been undermined,” said Skye Perryman, President and CEO of Democracy Forward. “With today’s ruling, we can expect to see a flood of litigation by special interests challenging any policy or regulation that doesn’t fit their short-term agenda, even years after the fact, and undermining our government’s ability to work for all people. In addition to harming people and communities, our brief on behalf of small businesses across the nation explained, as Justice Jackson referenced in dissent, that there is no question that long-term uncertainty ‘hinders the ability of businesses to plan effectively.’”

Democracy Forward represented the Small Business Majority, Main Street Alliance, American Sustainable Business Council (ASBC), South Carolina Small Business Chamber of Commerce, and Businesses for Conservation and Climate Action (BCCA) in a brief urging the Court to decline the invitation to dramatically widen the playing field for legal challenges against regulations that seek disruptive outcomes. 

“This decision, as well as other cases the Court has decided this term, radically undermine the ability of the federal government to deliver for the American people, undermining our democracy.” Perryman continued.

Additional Background

Today’s decision concerns the statute of limitations under the Administrative Procedure Act (APA). The APA provides a six-year statute of limitations in which to bring a challenge to federal agency decisions. The Court ruled that the APA’s statute of limitations does not begin to accrue until a plaintiff was injured, even when a plaintiff did not exist at the time—creating a huge hole in the statute of limitations and allowing far-right actors to create new organizations for the sole purpose of challenging long-standing policies they oppose.

On December 20, 2023, Democracy Forward filed a brief on behalf of Small Business Majority, Main Street Alliance, American Sustainable Business Council (ASBC), South Carolina Small Business Chamber of Commerce, and Businesses for Conservation and Climate Action (BCCA) urging the Court to decline the invitation to dramatically widen the playing field for legal challenges against regulations that seek disruptive outcomes.

In her dissent, Justice Jackson cites Democracy Forward’s brief, writing “Knowledgeable amici have explained that the majority’s approach to accrual of the statute of limitations for APA claims undermines the ‘[s]tability, predictability, and consistency [that] enable[s] small businesses to survive and thrive.’ … And there is no question that long-term uncertainty ‘hinders the ability of businesses to plan effectively.’”

Perryman testified before Congress in 2024, warning that a ruling like this could create a situation where courts all over the country could strike down or reinterpret regulations years after the fact, creating an unworkable and destabilizing regulatory environment.

To speak with Perryman about the impacts of this decision, please email dgrahamcaso@democracyforward.org. For more information about Democracy Forward and its role in Corner Post, Inc. v. Board of Governors of the Federal Reserve System, see here.

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