President Trump has signed a new executive order designed to increase presidential oversight and control over all executive branch agencies, including those traditionally considered “independent regulatory agencies.” The order, titled “Ensuring Accountability for All Agencies,” seeks to ensure that these agencies are more accountable to the President.

The executive order outlines several key changes to the regulatory process. Most notably, it mandates that all executive departments and agencies, including independent agencies, submit all proposed and final significant regulatory actions to the Office of Information and Regulatory Affairs (OIRA) within the Executive Office of the President for review before publication in the Federal Register.

The executive order will have significant impacts on federal agencies, particularly independent regulatory agencies. Key effects include:

1. Increased White House oversight: All executive departments and agencies, including independent agencies, must submit proposed and final significant regulatory actions to the Office of Information and Regulatory Affairs (OIRA) for review before publication.
2. Budgetary control: The Office of Management and Budget (OMB) will have the power to review and adjust independent regulatory agencies’ apportionments to align with the President’s policies and priorities.
3. White House liaison: Independent regulatory agencies must establish a White House Liaison position to coordinate policies and priorities with the Executive Office of the President.
4. Performance standards: The Director of OMB will establish performance standards and management objectives for independent agency heads and report periodically to the President on their performance.
5. Legal interpretation: According to the executive order, the President and the Attorney General, under the President’s supervision, are responsible for providing authoritative legal interpretations for the executive branch. The order states that their opinions on legal questions are binding on all executive branch employees in their official duties. Executive branch employees are prohibited from advancing legal interpretations that contradict the President or Attorney General’s opinions, including in regulations, guidance, and litigation, unless authorized by the President or the Attorney General in writing.
6. Expanded presidential authority: The order extends presidential control into areas that have traditionally remained nonpartisan, potentially affecting agencies like the SEC, FDIC, FTC, and FCC.

The order significantly undermines the independence of regulatory agencies. With increased White House control over agency priorities and budgets, funding could be cut or redirected away from initiatives that conflict with the administration’s agenda.