Executive Order Increases President’s Authority Over Independent Agencies

In recent news, President Donald Trump signed Executive Order 14216 on February 18, 2025. This order reinforces the administration’s stance that independent regulatory agencies must adhere closely to White House directives. The order challenges the longstanding autonomy of agencies like the Federal Trade Commission (FTC) and Securities and Exchange Commission (SEC) by asserting White House supremacy over them.

Under this executive order, independent agencies are required to submit all significant regulatory actions to the Office of Information and Regulatory Affairs (OIRA) within the Executive Office of the President before publication in the Federal Register. Additionally, the Office of Management and Budget (OMB) will review and adjust spending obligations of independent agencies to align with presidential priorities.

One significant change brought about by this order is the centralization of legal interpretations. The president and attorney general will now provide binding legal interpretations for the entire executive branch, ensuring uniformity across agencies. Moreover, independent agencies must consult and coordinate policies with various White House bodies, including the Domestic Policy Council and National Economic Council.

The conservative majority in the Supreme Court may be supportive of these changes, although constitutional challenges are anticipated. Opponents argue that the order undermines the statutory independence of regulatory agencies, potentially violating legal precedents. The requirement for agencies to submit proposed regulations for White House review may also face challenges under the Administrative Procedure Act (APA).

For industries heavily regulated by independent agencies, such as banking, technology, energy, and telecommunications, this executive order signals increased White House influence over decision-making. Businesses should anticipate shifts in enforcement priorities and compliance expectations as agencies align with executive branch directives. Proactive engagement and advocacy with the White House and independent agencies will be crucial for companies to adapt to evolving policy changes.

Companies are advised to monitor agency guidance closely and be prepared for changes in regulatory priorities under more direct executive oversight. With the alignment of independent agencies with White House priorities, businesses should reassess internal policies to ensure compliance with new regulatory expectations. Adaptation to evolving regulations will be essential for navigating this new era of heightened presidential oversight over independent agencies.