Fact Sheet: President Donald J. Trump Reins in Independent Agencies to Restore a Government that Answers to the American People

Fact Sheets

TLDR

The referenced executive order asserts complete presidential authority over all executive branch agencies, including traditionally independent ones. It requires all agencies to submit regulations for White House review, gives OMB control over independent agencies’ budgets, and affects major regulatory bodies like the FTC, FCC, and SEC. This fundamentally alters the long-standing structure of independent regulatory agencies.

This is a “fact sheet” on the executive order “Ensuring Accountability for All Agencies”.

The order asserts complete presidential authority over all executive branch agencies, including traditionally independent agencies, based on Article II of the Constitution. This fundamentally alters the long-standing structure of independent regulatory agencies.

Regulatory Review Changes

  • All agencies must submit regulations for White House review
  • Federal Reserve retains independence only for monetary policy
  • White House will set performance standards and strategic plans
  • OMB gains control over independent agencies’ budgets

Affected Independent Agencies

The order specifically impacts major regulatory bodies including:

  • Federal Trade Commission (FTC)
  • Federal Communications Commission (FCC)
  • Securities and Exchange Commission (SEC)

Analysis

Constitutional Implications

The order represents a significant departure from the traditional understanding of independent agencies’ role in government. While Article II does vest executive power in the president, independent agencies were historically designed to operate with some degree of autonomy to ensure regulatory stability and expertise-driven decision-making.

Practical Impact

This executive order would:

  • Centralize regulatory power in the White House
  • Reduce agency autonomy in rulemaking
  • Give the president direct control over traditionally independent regulatory decisions
  • Allow White House review of billions in regulatory actions

Potential Concerns

The restructuring raises several governance issues:

  • Elimination of regulatory independence may increase political influence over technical decisions
  • Centralized control could slow down regulatory processes
  • Budget control through OMB could be used to pressure agency decisions

This executive order fundamentally reshapes the relationship between the presidency and independent regulatory agencies, marking a significant shift in federal administrative structure.

RESTORING DEMOCRACY AND ACCOUNTABILITY IN GOVERNMENT:

Today, President Donald J. Trump signed an Executive Order ensuring that all federal agencies are accountable to the American people, as required by the Constitution. Under this Executive Order:

  • The Order notes that Article II of the U.S. Constitution vests all executive power in the President, meaning that all executive branch officials and employees are subject to his supervision.
  • Therefore, because all executive power is vested in the President, all agencies must: (1) submit draft regulations for White House review—with no carve-out for so-called independent agencies, except for the monetary policy functions of the Federal Reserve; and (2) consult with the White House on their priorities and strategic plans, and the White House will set their performance standards.
  • The Office of Management and Budget will adjust so-called independent agencies’ apportionments to ensure tax dollars are spent wisely.
  • The President and the Attorney General (subject to the President’s supervision and control) will interpret the law for the executive branch, instead of having separate agencies adopt conflicting interpretations.

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.

ENSURING A GOVERNMENT THAT ANSWERS TO THE PEOPLE: This order fulfills President Trump’s promise to restore constitutional governance and accountability to the entire executive branch.

  • Executive power without responsibility has no place in our Republic. The United States was founded on the principle that the government should be accountable to the people. That is why the Founders created a single President who is alone vested with “the executive Power” and responsibility to “take Care that the Laws be faithfully executed.”
  • Voters and the President can now hold all Federal agencies—not just Cabinet departments—responsible for their decisions, as the Constitution demands.