Answer
The Legislative branch, which comprises the Senateand House of Representatives (known collectively as Congress), is assigned authority for creating the lower courts in two sections of the Constitution. Most people are familiar with Article III Courts, which comprise the federal judicial system. People are less familiar with the authority granted to Congress to create Article I courts and tribunals, such as administrative courts and boards that regulate the interaction between US citizens and the governments various departments and functions.
Explanation
Article III Courts
Article III, Section 1 of the Constitution assigned authority for creating the federal courts to Congress. The first time they exercised this responsibility was in the Judiciary Act of 1789, at which time they established 13 District and 3 Circuit Courts, fixed the number of Supreme Court justices at six, and created the office of Attorney General, among other things.
Article III, Section 1:
"The judicial power of the United States, shall be vested in one Supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish. The judges, both of the supreme and inferior courts, shall hold their offices during good behaviour, and shall, at stated times, receive for their services, a compensation, which shall not be diminished during their continuance in office"
The phrase "and in such inferior courts as the Congress may from time to time ordain and establish" indicates the Framers intended Congress to have authority to create, dismantle, assign jurisdiction, vary court size, and make other unspecified changes at their discretion, unless the Constitution dictates otherwise.
Congress also has the power to make changes to the size of the US Supreme Court through simple legislation; however, a constitutional amendment is required to alter any of the Supreme Court's enumerated or implied powers, such as jurisdiction.
For example, the Eleventh Amendment revoked the Supreme Court's original jurisdiction over disputes "between a state and citizens of another state," due to the Court's decision in Chisholm v. Georgia, (1793), in which the Jay Court decided the states lacked sovereign immunity from being sued for debt acquired during the Revolutionary War. Congress and the states rightfully feared this could bankrupt the states, and quickly passed the Eleventh Amendment.
The Supreme Court later decided the Eleventh Amendment should be extended to include disputes between a state and its own citizens.
Amendment XI
"The judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by citizens of another state, or by citizens or subjects of any foreign state."
Article I Courts and Tribunals
Article I enumerates the powers of Congress. Article I, Section 8, Clause 8 grants Congress the ability to create Article I tribunals:
Article I, Section 8 (Clause 8) "Section 8. The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States; . . . "To constitute tribunals inferior to the Supreme Court"
Article I judges, sometimes called Administrative Law Judges (ALJ) if they hear appeals of decisions from government agencies and departments, do not enjoy the lifetime tenure or other constitutional protection afforded judges and justices under article III. They are similar in most respects to judges at the trial level, in that they hear testimony, examine evidence, and make legally binding decisions.
Examples of Article I Tribunals:
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