Key New Deal Legislation Ruled Unconstitutional

1935

To combat the Great Depression, Congress and the administration of Franklin D. Roosevelt establish the National Industrial Recovery Administration (known as the NRA). One of the New Deal’s key programs, the NRA’s provisions include requirements for minimum wages and maximum hours, and certain price controls. In Schechter Corporation v. United States, the U.S. Supreme Court rules that the NRA exceeds Congress’s power to regulate interstate commerce and invades the states’ rights to regulate manufacturing. Even an economic emergency such as the depression does not justify the federal government interference with the states’ economic activities.