DC Circuit Upholds Reinstatement of FTC Commissioner Fired by Trump, Citing 90-Year-Old Precedent
Washington, D.C., September 3, 2025 — In a significant ruling, the U.S. Court of Appeals for the District of Columbia Circuit has upheld the reinstatement of Federal Trade Commissioner Rebecca Kelly Slaughter, who was fired without cause by President Donald Trump in March 2025. The 2-1 decision, issued on Tuesday, September 2, 2025, reaffirmed a 90-year-old Supreme Court precedent, Humphrey’s Executor v. United States (1935), which protects FTC commissioners from arbitrary dismissal, dealing a blow to Trump’s efforts to exert control over independent federal agencies.
A Landmark Decision Rooted in Precedent
The D.C. Circuit’s ruling denied the Trump administration’s request to block a lower court order reinstating Slaughter, a Biden appointee, to her role at the Federal Trade Commission (FTC). The majority opinion, penned by Judges Patricia Millett and Cornelia Pillard, both Obama appointees, emphasized that federal law prohibits the president from firing FTC commissioners without cause, such as “inefficiency, neglect of duty, or malfeasance in office.” Citing Humphrey’s Executor, the court stated, “The government has no likelihood of success on appeal given controlling and directly on-point Supreme Court precedent. Bucking such precedent is not within this court’s job description.”
The 1935 Supreme Court case, which arose when President Franklin D. Roosevelt attempted to fire FTC Commissioner William E. Humphrey for political reasons, established that FTC commissioners serve seven-year terms and can only be removed for cause. This precedent, reaffirmed over decades, ensures the FTC’s independence as a bipartisan agency tasked with consumer protection and antitrust enforcement.
The Legal Battle and Its Context
Trump’s firing of Slaughter and fellow Democratic Commissioner Alvaro Bedoya in March 2025 sparked immediate legal challenges. The commissioners argued their dismissals violated the FTC Act and Humphrey’s Executor, with Trump’s termination letters citing their “continued service” as “inconsistent with my administration’s priorities.” U.S. District Judge Loren AliKhan, a Biden appointee, ruled in July 2025 that Slaughter’s firing was illegal, ordering her reinstatement. Bedoya, who resigned in June to pursue private-sector work, had his claim dismissed as moot.
The Trump administration appealed AliKhan’s ruling, seeking a stay pending further litigation. However, the D.C. Circuit’s majority found no basis to grant the stay, stating that overturning Humphrey’s Executor would require defying binding Supreme Court precedent, a task reserved for the high court itself. Judge Neomi Rao, a Trump appointee, dissented, arguing that courts may lack the authority to reinstate executive branch officials and that Slaughter could seek back pay later if her removal is deemed unlawful.
Implications for Independent Agencies
The ruling underscores the enduring strength of Humphrey’s Executor, which has protected the independence of agencies like the FTC, National Labor Relations Board (NLRB), and Consumer Product Safety Commission (CPSC) for nearly a century. However, the Trump administration’s broader push to remove Democratic appointees from independent agencies has raised questions about the precedent’s future. In May 2025, the Supreme Court allowed Trump to temporarily remove members of the NLRB and Merit Systems Protection Board (MSPB) while legal challenges continue, signaling potential openness to revisiting Humphrey’s Executor.
Legal scholars anticipate that Slaughter’s case may reach the Supreme Court, where a conservative 6-3 majority has expressed skepticism about for-cause removal protections. Chief Justice John Roberts’ 2020 opinion in Seila Law v. CFPB suggested that the FTC’s authority has evolved since 1935, potentially undermining Humphrey’s Executor. The Trump administration has argued that modern FTC powers, including rulemaking and enforcement, justify greater presidential control, a view echoed by FTC Chairman Andrew Ferguson.
Broader Impact and Reactions
Slaughter, who has four years remaining in her term, celebrated the ruling, stating, “The law is clear, and I look forward to getting back to work.” Her reinstatement ensures the FTC maintains its bipartisan structure, with no more than three of its five commissioners from the same party. Currently, the FTC is led by three Republicans, with Slaughter as the sole Democrat following Bedoya’s resignation.
Critics of Trump’s actions, including Democratic Senators Amy Klobuchar and Dick Durbin, have warned that unchecked presidential removal power could politicize independent agencies, favoring corporate interests and undermining consumer protections. Conversely, the administration argues that such agencies wield significant executive power and should be accountable to the president, a stance that could reshape the structure of federal governance if upheld by the Supreme Court.
What’s Next?
The Trump administration has signaled its intent to appeal to the Supreme Court, setting the stage for a potential landmark ruling on presidential authority and agency independence. The case could determine whether Humphrey’s Executor remains a cornerstone of regulatory governance or is overturned, impacting agencies that oversee everything from consumer safety to monetary policy. For now, Slaughter resumes her duties at the FTC, as the legal battle over the balance of power in the executive branch continues to unfold.
For more information, contact the FTC Office of Public Affairs at opa@ftc.gov or visit www.ftc.gov.