Trump Administration claims authority over Independent Agencies

The recent Executive Order issued by the Trump Administration named “Ensuring Accountability for All Agencies” has stirred discussions and debates regarding the extent of Presidential authority over independent agencies such as the Federal Trade Commission (FTC), Federal Communications Commission (FCC), and Securities and Exchange Commission (SEC). This order signifies a shift towards increased involvement by the White House in the decision-making processes of these independent agencies, both in terms of substance and procedure.

One of the primary changes introduced by the Executive Order is the inclusion of independent agencies within the review process established by Executive Order 12866, which was initiated during the Clinton Administration. This process mandates that significant regulatory actions be submitted to the Office of Information and Regulatory Affairs (OIRA) for review before being published in the Federal Register. The recently amended definition of “significant regulatory action” encompasses a broad spectrum, ranging from economic impact to legal and policy implications.

Furthermore, the Executive Order also mandates that the Office of Management and Budget (OMB) Director establish performance standards and management objectives for independent agency heads. It requires the OMB Director to monitor and evaluate the performance and efficiency of these agencies concerning the set standards and objectives, reporting periodically to the President on their progress.

In addition to this, the Executive Order empowers the OMB Director to review independent regulatory agencies’ obligations regularly to ensure alignment with the President’s policies and priorities. The OMB Director is further given the authority to adjust the agencies’ apportionments based on specific criteria to advance the administration’s agenda effectively.

To enhance oversight and coordination between independent regulatory agencies and the Executive Office of the President, the Executive Order outlines three key measures. These include regular consultation and coordination with key figures within the White House, the creation of a White House Liaison position within each agency, and the submission of agency strategic plans to the OMB Director for clearance before finalization.

Moreover, the Executive Order highlights the role of the President and the Attorney General in providing authoritative interpretations of the law for the executive branch. It emphasizes that these interpretations are binding on all employees, prohibiting them from advancing any conflicting interpretations. This directive aims to ensure consistency and adherence to legal standards across the executive branch.

Overall, the Executive Order represents a significant effort by the Trump Administration to assert Presidential authority over independent agencies and align their policies and practices with the administration’s priorities. While the full implications of this order are yet to unfold, its inception marks a notable shift in the relationship between independent agencies and the executive branch.