Ace the 2026 Federal Regulations SBE Test – Rule the Rules with Confidence!

Chevron deference means that when a statute is ambiguous, courts should defer to the agency’s reasonable interpretation of that statute, as long as the interpretation lies within the agency’s granted authority. The idea is that Congress delegates authority to specialized agencies to implement complex laws, so if the statutory text doesn’t spell out a single answer, the agency’s informed reading gets controlling weight. In practice, courts follow a two-step approach: first, they check whether the statute is clear on the issue; if it is, they apply the plain meaning. If the statute is ambiguous, they then ask whether the agency’s interpretation is reasonable; if it is, the court defers to it. Chevron does not let agencies create new laws; it governs how courts interpret existing statutes, within the agency’s jurisdiction.