How are administrative agencies empowered?

Answer:
Administrative agencies come into being through what's called an "organic statute," which is the statute that creates the agency. This statute will specify the agency's mission, and, beyond the default rules of the Administrative Procedures Act, what powers the administrative agency has. You will know what the "organic statute" is because agencies have to cite the law that provides a basis for their authority to regulate whenever they issue a regulation. Thus, they will always cite to this statute. Because Congress creates the administrative agency, courts will look primarily to the intent of Congress when there is dispute over a particular agency's power. The power of administrative agencies is also bound by the U.S. Constitution, which calls for a separation of powers between the three branches and vests all lawmaking power in the legislature.
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