The Keifer & Keifer v. Reconstruction Finance Corp. and Regional Agricultural Credit Corp., 1938, was a case that revolved around the issue of whether federal agencies could be sued without explicit congressional authorization. The plaintiffs, Keifer & Keifer, were farmers who had borrowed money from the defendants (Reconstruction Finance Corporation and Regional Agricultural Credit Corporation) to finance their crop production but failed to repay the loan in full due to poor harvests caused by drought conditions. They filed a lawsuit against these corporations seeking relief from their debt obligations on grounds of economic hardship. The Supreme Court ruled in favor of the plaintiffs stating that federal agencies like those involved in this case are not immune from lawsuits unless Congress has explicitly granted them immunity through legislation. This ruling established an important legal precedent which clarified that federal instrumentalities can be held accountable for their actions through litigation unless they have been specifically exempted by law.

The dissenting opinion in the Keifer & Keifer v. Reconstruction Finance Corp. and Regional Agricultural Credit Corp., 1938 case argued that the majority's decision to allow a federal agency to be sued without its consent was inconsistent with long-standing principles of sovereign immunity, which protect government entities from lawsuits unless they agree to be sued. The dissenters contended that this principle should apply not only to direct branches of the government but also agencies like the Reconstruction Finance Corporation (RFC). They believed that allowing such suits could potentially expose these agencies, and by extension taxpayers, to significant financial risk. Furthermore, they disagreed with the majority's interpretation of Congress' intent when creating RFC; arguing instead that there was no clear indication Congress intended for it or similar bodies to waive their inherent right as governmental entities against being subjected to legal action without their explicit consent.