President Trump issued an executive order (EO) this week that mandates reducing the size of the federal government by eliminating entities and functions that the president has deemed to be unnecessary.
The title of the EO is Commencing the Reduction of the Federal Bureaucracy. It targets specific governmental entities, Federal Advisory Committees, and programs, directing their termination or reduction in scope. The EO also revokes related regulations and mandates reports on compliance and further recommendations for termination.
As to its purpose, the EO states:
This order commences a reduction in the elements of the Federal bureaucracy that the President has determined are unnecessary. Reducing the size of the Federal Government will minimize Government waste and abuse, reduce inflation, and promote American freedom and innovation.
A fact sheet published by the White House on the EO adds the following:
- The Order aims to further decrease the size of the Federal Government to enhance accountability, reduce waste, and promote innovation.
- It eliminates or reduces to the minimum level of activity and expenditure required by law unnecessary governmental entities and Federal advisory committees.
- Within 30 days, a list of additional unnecessary government entities and advisory committees must be submitted to the President for termination.
Entities Targeted for Elimination
These are the governmental entities named in the EO that are targeted for elimination “to the maximum extent consistent with applicable law:”
- The Presidio Trust
- The Inter-American Foundation
- The United States African Development Foundation
- The United States Institute of Peace
Heads of the named unnecessary governmental entities must submit reports to the Office of Management and Budget (OMB) Director within 14 days, confirming compliance and detailing statutory requirements.
Additionally, the OMB Director or executive department heads will review budget requests from the listed entities. Funding requests inconsistent with the EO will be rejected, except in cases of expected termination.
Within 14 days of the date of the EO, the named heads of executive departments and agencies are directed to do the following:
- The Administrator of the United States Agency for International Development shall terminate the Advisory Committee on Voluntary Foreign Aid
- The Director of the Bureau of Consumer Financial Protection shall terminate the Academic Research Council and the Credit Union Advisory Council
- The Board of Directors of the Federal Deposit Insurance Corporation shall terminate the Community Bank Advisory Council
- The Secretary of Health and Human Services shall terminate the Secretary’s Advisory Committee on Long COVID
- The Administrator of the Centers for Medicare and Medicaid Services shall terminate the Health Equity Advisory Committee
Additional Provisions of the Executive Order
The EO also requires searching for other unnecessary governmental entities to eliminate. It gives the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and the Assistant to the President for Domestic Policy 30 days to identify and submit unnecessary governmental entities and Federal Advisory Committees to be flagged for termination.
One other action taken by the EO is that it revokes President John F. Kennedy’s memorandum from 1961, Need for Greater Coordination of Regional and Field Activities of the Government. This memo established regional federal executive boards in agencies to encourage interagency cooperation and evaluate field management procedures within departments.
The Office of Personnel Management Director is tasked with carrying out the process of eliminating the Federal Executive Boards established by the 1961 memo.
The new EO also directs the OPM Director to terminate the Presidential Management Fellows Program. The program’s website describes it as “the Federal Government’s premier leadership development program for advanced degree holders across all academic disciplines.”
Working With DOGE to Eliminate Unconstitutional Regulations
In a related executive order issued the same day, President Trump directed agency heads to work with the Department of Government Efficiency (DOGE) to begin the process of reviewing and rescinding regulations that undermine the best interests of the country or do not align with the administration’s objectives.
Specifically, it targets the following types of regulations:
- Unconstitutional regulations and regulations that raise serious constitutional difficulties, such as exceeding the scope of the power vested in the Federal Government by the Constitution;
- Regulations that are based on unlawful delegations of legislative power;
- Regulations that are based on anything other than the best reading of the underlying statutory authority or prohibition;
- Regulations that implicate matters of social, political, or economic significance that are not authorized by clear statutory authority;
- Regulations that impose significant costs upon private parties that are not outweighed by public benefits;
- Regulations that harm the national interest by significantly and unjustifiably impeding technological innovation, infrastructure development, disaster response, inflation reduction, research and development, economic development, energy production, land use, and foreign policy objectives; and
- Regulations that impose undue burdens on small business and impede private enterprise and entrepreneurship.
Agency heads must undertake the review process within 60 days.
They are instructed to prioritize regulations that meet the definition of “significant regulatory action” as defined in a 1993 executive order issued by President Bill Clinton. Under the terms of that executive order, “significant regulatory action” means any regulatory action that is likely to result in a rule that may:
- Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities;
- Create a serious inconsistency or otherwise interfere with an action taken or planned by another agency;
- Materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or
- Raise novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in this Executive order.
Regulations that apply to military, national security, or immigration functions or any matter pertaining to the executive branch’s management of its employees are exempted. The Office of Management and Budget Director is also able to specify regulations that should be exempt.
