New Deal Legislation Found To Overstep Federal Government’s Authority

1935

In Schechter Corp. v. United States, the U.S. Supreme Court invalidates the National Industrial Recovery Act (NIRA), one of the New Deal’s key pieces of federal legislation. Among its provisions are minimum wage and maximum hours requirements and certain price controls. The Court rules that the NIRA exceeds Congress’ power to regulate interstate commerce and invades the states’ rights to regulate manufacturing. Even an economic emergency like the Depression, the Court finds, does not justify federal government interference with a state’s economic activity.