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D.C. Circuit Upholds Presidential Removal of MSPB and NLRB Members
On the eve of Trump v. Slaughter, the D.C. Circuit offers a way to distinguish Humphrey's Executor.
On Monday, the Supreme Court will hear oral argument in Trump v. Slaughter, the case challenging limitations on the President's ability to remove members of the Federal Trade Commission. In resolving this question, the Court will consider whether to narrow or overrule Humphrey's Executor.
Perhaps to aid in the Court's deliberations, today the U.S. Court of Appeals for the D.C. Circuit decided the combined cases of Harris v. Bessent and Wilcox v. Trump, concerning the limitations on removal of members of the Merit System Protection Board and National Labor Relations Board.
In Harris, a divided panel concluded that the President could remove members of both the MSPB and NLRB on the grounds that both entities exercise executive power and that limitations on removal in such contexts is contrary to the Supreme Court's decision in Seila Law v. CFPB. In this way, the panel sought to distinguish this case from Humphrey's Executor, which concerned an FTC that, at the time, exercised quasi-legislative and quasi-judicial power, as opposed to core executive power. In the process the panel also provided the Court a potential roadmap for upholding President Trump's removal of Slaughter from the FTC without formally over-ruling Humphrey's Executor (and perhaps, in the process, giving a nod to revisionist scholarship suggesting that limits on removal in the context of officers exercising quasi-judicial is consistent with history and tradition).
Judge Katsas wrote the opinion for the panel, joined by Judge Walker. Judge Pan dissented.
Judge Katsas summarizes the case as follows:
These appeals present the question whether Congress may constitutionally prohibit the President from removing members of the National Labor Relations Board and Merit Systems Protection Board without cause. The district courts upheld the constitutionality of statutory removal protections for members of these boards.
We reverse. Under Humphrey's Executor v. United States, 295 U.S. 602 (1935), Congress may restrict the President's ability to remove principal officers who wield only quasi-legislative or quasi-judicial powers. But under Seila Law LLC v. Consumer Financial Protection Bureau, 591 U.S. 197 (2020), Congress may not restrict the President's ability to remove principal officers who wield substantial executive power. As explained below, the NLRB and MSPB wield substantial powers that are both executive in nature and different from the powers that Humphrey's Executor deemed to be merely quasi-legislative or quasi-judicial. So, Congress cannot restrict the President's ability to remove NLRB or MSPB members
And from later in the opinion:
The constitutional problem in these cases arises from two features of each agency: (1) the agency has been vested with significant executive power that cannot be characterized as quasi-legislative or quasi-judicial, and (2) Congress has restricted the President's ability to remove its members. Wilcox and Harris urge us to solve the constitutional problem by stripping away agency powers, rather than by declining to enforce the removal restrictions.
We reject that proposal. When the Supreme Court encounters a statute that unconstitutionally insulates an executive officer from at-will removal, it has typically responded by disregarding the removal restriction. See Myers, 272 U.S. at 176; Free Enter. Fund, 561 U.S. at 508–10; Seila Law, 591 U.S. at 232–38. Our Circuit has done likewise. Dellinger v. Bessent, No. 25-5052, 2025 WL 717383, at *1 (D.C. Cir. Mar. 5, 2025) (per curiam). Following that wellworn path, we hold that the appropriate resolution here is to disregard the statutory removal restrictions for NLRB and MSPB members, not to blue-pencil provisions from among the full panoply of the executive powers of each agency.
The panel opinion notes that it is not deciding whether the President's unrestricted power of removal also applies to purely adjudicatory or quasi-adjudicatory bodies or to the Federal Reserve.
Judge Pan's dissent objects to the majority's conclusion, as well as its treatment of precedent. It concludes:
Throughout our history, the Supreme Court's precedents and our nation's practice and tradition have allowed independent multimember expert agencies to operate successfully within our constitutional system; and as a result, we have reaped the benefits of a workable government that best serves the interests of the American people. The government now urges an extreme view of Article II's Vesting Clause, torn from context: It attempts to reduce the actual art of governing to an uncompromising usurpation of power by the President, all in defiance of Congress's authority and without regard for the public good. My colleagues' substantial acceptance of the government's maximalist theory of executive power brings us closer to autocracy, harms our nation, and violates the separation of powers. I respectfully dissent.
A final little note. Given the composition of the D.C. Circuit, this case would be a good candidate for rehearing (and reversal) en banc. But given that the ultimate outcome here will almost certainly be controlled by what the Supreme Court does in Slaughter, it will be interesting to see whether the other judges on D.C. Circuit believe granting a petition for rehearing en banc is worth the effort, particularly given the fact that the Supreme Court has already indicated that it is likely to allow Trump to remove Harris and Wilcox.
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Gee, I wonder why the Fed is still different. I’m sure it doesn’t have anything to do with protecting everyone’s 401k.
The Fed is still different because the Supreme Court hasn't ruled on that question yet.
Oral arguments are Jan 21st.
But in that case the Government is not arguing the "for cause" removal is unconstitutional, it is arguing the statute as written allows the president to determine if there is cause.
Quite a different argument than in this case.
It's… not a different argument. "The president can decide in his sole discretion to fire someone" vs. "The president can decide in his sole discretion that someone has done something that merits firing."
No Dave.
The Federal Reserve Statue says "and thereafter each member shall hold office for a term of fourteen years from the expiration of the term of his predecessor, unless sooner removed for cause by the President."
The Administration wants the court to uphold the statute as written.
In the NLRB case the Administration wants the court to rule that the statute is unconstitutional, as the Court of Appeals has already ruled.
"Any member of the Board may be removed by the President, upon notice and hearing, for neglect of duty or malfeasance in office, but for no other cause."
Different statutes, different arguments.
I hope I don't have to explain to you the difference between upholding one statute and declaring another unconstitutional.
Respecting "unless sooner removed for cause by the President" still requires the court to decide what falls within "for cause" - ie what sort of cause is required - and also to construe the meaning of the subclause in toto, which IMHO at least is an interesting little subclause.
As to the meaning of "for cause" I don't think it can mean "for any cause that occurs to the President" - eg wearing a disagreeable hat, smelling of garlic, being ugly, would be unlikely to qualify as "for cause." Whether "being likely to vote for policies that I, the President, think would be harmful to the Republic" is a better candidate, is certainly arguable, but even so - does "for cause" not perhaps betoken an element of fault in the dismissed person ? Plenty to chew on here, without assuming it's a slam dunk one way or another.
But the phrase as a whole is interesting too - "removed for cause by the President" suggests that the test is whether there was a [whatever the court thinks is good enough] cause in the President's mind. It should not matter if the President is mistaken as to the relevant facts, so long as he actually believes in "the cause."
Thus if the President fires you "for cause" - the cause being that you are a financial fraudster, and having financial fraudsters on the Fed Board is dangerous, that would seem to me to be quite good enough. The "cause" includes an element of fault, and the court might reasonably conclude that a cause must do so, but it shouldn't matter whather you are in fact a financial fraudster, because that is irrelevant to whether the President fired you for that cause. All that matters is that he thought you were.
No. The statute as written requires actual cause. The Administration wants to rewrite that to say that the president has the unilateral power to decide what's for cause, which is exactly the same thing as saying he doesn't need cause.
There is no difference between "The president can do X if he wants to" and "The president can do X if he says that he can."
Does your 401k exception have its own special quasi clause? Is it on the back of the Constitution in invisible ink next to the other quasi clauses?
It's on the back of the constitution with the "separation of powers" clause.
"Wilcox and Harris urge us to solve the constitutional problem by stripping away agency powers, rather than by declining to enforce the removal restrictions."
'Our jobs are more important than the Agency's mission' is an interesting take.
I do agree with the dissents argument that it gives the president too much power to control all of the executive power wielded by the agencies.
The proper remedy is for Congress to reduce the power and scope of the agencies. Merely allowing the previous Administrations nominees to wield that power isn't a solution.
I will also note the Senate still has to confirm whoever the president appoints, and can impeach and remove them from office.
If Congress is worried that the president has too much power it needs to start wielding its own.
This is the way.
(I also appreciate, from another source recently via the Originalism Blog, recognizing that the Federal Reserve System and its banks are federally chartered corporations, not executive agencies exercising Article II power--although that does perhaps collide with what Trump has done with the Kennedy Center board.)
This is of course wrong. The constitution does not give the president the power to fire people in a way that violates federal law. The opposite is true, the president is bound to follow federal law.
Molly is of course wrong. The constitution does not give congress the power to tie the presidents hands in ways that violate the constitution itself. The opposite is true - congress is bound to follow the constitution.
Now as Kazinski said above, I would prefer that congress brought things into constitutional compliance by revoking all those executive functions and drastically shrinking the role of government. But absent that, making those executive and quasi-executive agencies accountable to the one federal executive that we actually voted for (as the constitution requires) is second-best.
Nutso utopians don't mind some smallminded needless authoritarianism if they can work it.
Obviously not. So Congress should be careful to avoid violating the "President-can-fire-anyone-he-wants-for-any-reason" provision of Article XII of the Constitution.
The constitution doesn't give Congress the power to constrain the President's constitutionally conferred power.
Separation of powers is decreed by the Constitution.
"All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives."
So obviously a "quasi-legislative" agency is unconstitutional. If an executive agency has power to write regulations to implement a law it is an executive function.
Firing people without cause is not a power given to the president.
Sure it is. The Constitution does not enact Mr. Karl Marx's Theory of Revolution.
Yes it is.
It is an executive function.
The executive power is vested in the President of the United States.
The Constitution is a document of enumerated powers. Article II enumerates the powers of the president and firing people is not there.
This might be true, but you're going to have to demonstrate that, not merely assert it; nothing in the constitution actually says that.
"follow federal law" that does not violate the Constitution
Ultimately, it is up to SCOTUS, which, as Kagan has noted in the past, will likely decide things contrary to both text and history.
I predict they will uphold Myers v US which was decided in 1926, and mainly relied on the debates of the 1st Congress to reach its decision, along with the text of the constitution.
A former president puts forth a strongly executive-friendly opinion that three justices, including Brandeis* and Holmes, dissented from, and then a few years later, the justices remaining on the bench make clear that the opinion did not go as far as dicta might suggest.
==
* Brandeis and McReynolds (in a somewhat atypical effort) provided detailed criticism of the originalist arguments, showing how open to debate such things are.
But the decision 3 years later, was extremely narrow, limited to "quasi-judicial" and "quasi-legislative" agencies.
And I really can't find any reference in the constitution to quasi anything in the constitution.
Just so. What exactly is "quasi-judicial" and "quasi-legislative" supposed to mean ?
There are various federal agencies covered by the ruling.
Also, the opinion does not appear to be "extremely narrow" for another reason. The opinion clarified that, whatever the dicta suggested, Myers decided a "narrow point." It added:
In the course of the opinion of the court, expressions occur which tend to sustain the government's contention, but these are beyond the point involved and, therefore, do not come within the rule of stare decisis. In so far as they are out of harmony with the views here set forth, these expressions are disapproved.
This was an opinion by Justice George Sutherland, one of the conservatives, for a unanimous bench.
Not that it matters much, but it wasn't "three years later." Myers was in 1926. Humphrey's was 1935.
Sutherland notes that Myers was based on the fact that it was an "executive officer restricted to the performance of executive functions." This is tied to debatable (again, note the dissent) Art. II language involving executive power.
The agency here was not of that nature, so it was different. The Constitution allows Congress to create offices with various qualities. "Quasi" is a descriptive of this specific type.
Sutherland cites an example back to the days of James Madison of an office with a similarly mixed character.
IMHO, the opinion probably should have simply overturned Myers, since the dissenters there were correct. But it was not minor.
(McReynolds concurred in Humphrey's pursuant to his opinion in Myers.)
Throughout our history, the Supreme Court's precedents and our nation's practice and tradition have allowed independent multimember expert agencies to operate successfully within our constitutional system; and as a result, we have reaped the
benefits of a workable government that best serves the interests of the American people.
This is not true.
Thse independent agencies do not even date back to the 1860's, let alone the 17th century.
If there is an exception to the general principle that the Preisdent may fire any Article II employee without restraint, it must be deeply rooted in our nation's history and tradition, and independent agencies lack these deep roots.