President Trump issued an executive order this week which aims to reinforce the accountability and supervision of independent regulatory agencies, emphasizing a more unified and coherent approach to executing federal law. This will have implications for federal employees as well.
The new Executive Order is titled: Ensuring Accountability for All Agencies. It mandates that all executive departments and agencies, including independent ones, submit all significant regulatory actions for review to the Office of Information and Regulatory Affairs (OIRA) within the Executive Office of the President before publication. This step ensures that these agencies’ actions align with the President’s policies and priorities.
The Executive Order explains the rationale for the policy change:
…previous administrations have allowed so-called “independent regulatory agencies” to operate with minimal Presidential supervision. These regulatory agencies currently exercise substantial executive authority without sufficient accountability to the President, and through him, to the American people. Moreover, these regulatory agencies have been permitted to promulgate significant regulations without review by the President.
These practices undermine such regulatory agencies’ accountability to the American people and prevent a unified and coherent execution of Federal law. For the Federal Government to be truly accountable to the American people, officials who wield vast executive power must be supervised and controlled by the people’s elected President.
A related fact sheet published by the White House calls out three agencies in particular as further evidence as to the purpose of the Executive Order:
REINING IN INDEPENDENT AGENCIES: So-called independent agencies like the Federal Trade Commission (FTC), Federal Communications Commission (FCC), and Securities and Exchange Commission (SEC) have exercised enormous power over the American people without Presidential oversight.
- These agencies issue rules and regulations that cost billions of dollars and implicate some of the most controversial policy matters, and they do so without the review of the democratically elected President.
- They also spend American tax dollars and set priorities without consulting the President, while setting their own performance standards.
- Now they will no longer impose rules on the American people without oversight or accountability.
Other Provisions of the Executive Order
The Order also states the following:
- The Director of Office of Management and Budget (OMB) will provide guidance to executive departments and agencies on implementing the order.
- The Director of OMB will establish performance standards and management objectives for independent agency heads, reporting to the President on their performance.
- The Director of OMB will review and adjust independent regulatory agencies’ apportionments to align with the President’s policies and priorities.
- Independent regulatory agency chairmen are required to regularly consult with and coordinate policies and priorities with the Director of OMB, the White House Domestic Policy Council, and the White House National Economic Council.
- Heads of independent regulatory agencies must establish a GS 15 position in Schedule C of the excepted service to serve as a White House Liaison to consult with the Executive Office of the President to carry out the requirements of the executive order.
Implications for Federal Employees
The clause of most significance for federal employees states that the President and Attorney General provide authoritative interpretations of law for the executive branch, so executive branch federal employees must follow these interpretations unless authorized otherwise. It states:
Rules of Conduct Guiding Federal Employees’ Interpretation of the Law. The President and the Attorney General, subject to the President’s supervision and control, shall provide authoritative interpretations of law for the executive branch. The President and the Attorney General’s opinions on questions of law are controlling on all employees in the conduct of their official duties. No employee of the executive branch acting in their official capacity may advance an interpretation of the law as the position of the United States that contravenes the President or the Attorney General’s opinion on a matter of law, including but not limited to the issuance of regulations, guidance, and positions advanced in litigation, unless authorized to do so by the President or in writing by the Attorney General.
Memo Targeting Wasteful Spending in Agencies
Trump issued a memorandum on the same day (February 18) that targets wasteful spending in the federal government on programs which he says do not benefit Americans. This directive aims to increase transparency by making public details of terminated or discontinued federal funding obligations.
It contains a new mandate for federal agencies to increase transparency on how taxpayer funds are spent. The memo, Radical Transparency About Wasteful Spending, states:
I therefore direct the heads of executive departments and agencies (agencies) to take all appropriate actions to make public, to the maximum extent permitted by law and as the heads of agencies deem appropriate to promote the policies of my Administration, the complete details of every terminated program, cancelled contract, terminated grant, or any other discontinued obligation of Federal funds. Agencies shall ensure that such publication occurs in accordance with all applicable laws, regulations, and the terms and conditions of the underlying contract, grant, or other award.
Conclusion
President Trump’s recent executive order makes a significant shift in the oversight and accountability of independent regulatory agencies, ensuring that their actions align more closely with the administration’s objectives.
Additionally, the emphasis on transparency in the memorandum targeting wasteful spending reflects the administration’s goals to hold federal agencies accountable for their decisions and expenditures. This move not only impacts the agencies themselves, but also extends to federal employees, who must adhere to the unified legal interpretations outlined in the executive order. These measures collectively reflect the administration’s overall goals for the direction of the federal government, namely reigning in spending and regulations and increased accountability for federal employees as part of the president’s workforce optimization plan.
