Continuing the Reduction of the Federal Bureaucracy

TLDR

This executive order mandates the elimination of non-statutory components and functions of seven governmental entities including the Federal Mediation and Conciliation Service (FMCS), requiring them to reduce to the minimum presence required by law. Agency heads must report compliance within 7 days, and funding requests inconsistent with these reductions will be rejected. This may significantly reduce FMCS operations, affecting its ability to mediate labor disputes, and represents a major shift in federal policy regarding labor relations.

This executive order aims to reduce the scope of the federal bureaucracy by targeting several governmental entities, including the Federal Mediation and Conciliation Service (FMCS). The order’s main points and potential impacts are as follows:

1. The order mandates the elimination of non-statutory components and functions of seven governmental entities, including the FMCS.

2. These entities are required to reduce their statutory functions and associated personnel to the minimum presence and function required by law.

3. The heads of the affected entities must submit a report within 7 days to the Director of the Office of Management and Budget, confirming compliance and explaining which components or functions are statutorily required.

4. The Director of the Office of Management and Budget is instructed to reject funding requests from these entities that are inconsistent with the order.

Potential impacts on the Federal Mediation and Conciliation Service:

1. The FMCS, an independent agency created in 1947, may see a significant reduction in its operations and personnel. This could affect its ability to mediate labor disputes and provide conflict resolution services across various sectors.

2. The FMCS will likely need to identify and maintain only those functions explicitly required by law, such as its role under the Taft-Hartley Act in receiving advance notifications of collective bargaining agreement terminations or modifications.

3. The order’s instruction to reject funding requests inconsistent with the reduction mandate may lead to severe budget cuts for the FMCS.

4. The reduction of FMCS services could potentially affect labor-management relations and the resolution of industrial conflicts, which have been part of the agency’s core mission since its inception.

Broader Implications:

1. This order is part of a larger effort to reduce the size and scope of the federal government, continuing a trend of bureaucracy reduction.

2. The order may face legal scrutiny, as it explicitly states that it should be implemented consistent with applicable law and subject to the availability of appropriations.

3. This represents a significant shift in federal policy regarding labor relations and dispute resolution, potentially altering the landscape of federal involvement in these areas.

With regard to legal scrunity, the legality of this executive order is complex and potentially controversial. While the President does have broad authority to manage the executive branch, there are several aspects of this order that could face legal challenges:

1. The order explicitly states that it should be implemented “consistent with applicable law”. This means that any reductions or eliminations must not violate existing statutes that establish these agencies or mandate their functions.

2. Some of the targeted entities, like the Federal Mediation and Conciliation Service, were established by acts of Congress. Significantly altering or eliminating these agencies without congressional approval could be seen as overstepping executive authority.

3. The order acknowledges that its implementation is “subject to the availability of appropriations”. This recognizes that Congress ultimately controls funding, which could limit the executive branch’s ability to unilaterally reduce these agencies.

4. Similar executive orders in the past have faced legal challenges. Affected parties, including federal employees, unions, or beneficiaries of these agencies’ services, might file lawsuits arguing that the order exceeds presidential authority.

5. The order requires agencies to maintain statutorily mandated functions, which could significantly limit its impact if most of an agency’s activities are required by law.

While the President has authority to reorganize the executive branch to some extent, the full implementation of this order would likely face legal scrutiny and potential challenges in court. Its ultimate legality may depend on how it is implemented and interpreted by the courts. Furthermore, the full impact of this order on the FMCS and other affected agencies will depend on how it is implemented and what specific statutory functions are determined to be essential for each entity.

ACTIONS

• 2025-03-15: USAGM, Senior Advisor Kari Lake cancels obscenely expensive 15-year-lease that burdened the taxpayers and enforces Trump’s Executive Order to drastically downsize agency | USAGM — The US Agency for Global Media has initiated measures to eliminate non-statutory components and functions in compliance with President Trump’s Executive Order to reduce the federal bureaucracy. Senior Advisor Kari Lake announced the cancellation of an expensive 15-year lease and outlined plans to drastically downsize the agency, citing issues such as national security violations, self-dealing, and wasteful spending.

REFERENCES

• 2025-03-27: Trump restores funding for Radio Free Europe, Tech Fund — The Trump administration has restored funding for Radio Free Europe/Radio Liberty and the Open Technology Fund after the groups sued. The U.S. Agency for Global Media had previously cut off funding as part of broader efforts to eliminate the agency, but has now reversed course following legal challenges.
• 2025-03-15: Trump signs order to cut staff at Voice of America and other US-funded media organizations | AP News — President Donald Trump’s administration has made deep cuts to Voice of America and other US-funded media organizations, placing virtually all 1,300 VOA employees on paid administrative leave. The U.S. Agency for Global Media, which houses these organizations, has also terminated grants to Radio Free Asia and other programming that collectively reach an estimated 427 million people worldwide.