Trump’s Executive Order expands oversight over independent agencies, establishing new …

On February 18, 2025, an executive order titled “Ensuring Accountability for All Agencies” was signed by President Trump. This order brings significant changes to traditionally independent agencies by subjecting them to more supervisory controls similar to those of regular federal executive agencies. These independent agencies were previously exempt from such oversight due in part to a Supreme Court ruling in 1935 that granted commissioners of the Federal Trade Commission statutory protections against immediate removal without just cause.

The extension of this protection to independent agencies marks a notable shift and ushers in an era of increased accountability for these bodies. The executive order is expansive in scope, covering all independent regulatory agencies as defined in 44 U.S.C. § 3502(5), with only limited exceptions for agencies like the Federal Open Market Committee and the Board of Governors of the Federal Reserve System. This means many bodies such as the Commodity Futures Trading Commission, Federal Communications Commission, SEC, and others will now be subject to five distinct supervisory measures aimed at increasing accountability to the President without giving him direct control over decision-making.

The first measure involves OIRA Regulatory Review, bringing independent agencies under the regulatory scrutiny process managed by the Office of Information & Regulatory Affairs (OIRA). This established process now requires these agencies to conduct a regulatory impact analysis for significant rulemakings and undergo inter-agency reviews. While the President’s role remains indirect, the process allows for oversight and influence in the agencies’ decision-making.

Performance Standards and Management Objectives is another measure that will now apply to appointees at independent agencies. The OMB Director will set standards for them, tracking their performance and efficiency. Even though appointees are shielded from immediate removal, the President may still dismiss them for cause based on established metrics, influencing their conduct to align with policies and priorities.

Apportionments and OMB Budgetary Oversight grant the Director of OMB control over independent agencies’ budgetary matters, ensuring their alignment with the President’s objectives. This control over finances can guide decision-making within agencies. White House Consultation mandates that independent bodies appoint a liaison for coordination with the White House on policies and priorities, expanding the oversight and influence mechanism.

The order also enforces Consistent Interpretation of Federal Law, requiring Executive Branch employees at independent agencies to refrain from advancing conflicting interpretations without authorization from the President or the Attorney General. This aims to streamline legal positions and ensure alignment with the government’s official stance.

While these measures aim to increase White House influence over independent agencies, existing protections against arbitrary removal provide some resistance. The ongoing legal challenges could potentially alter the current landscape and the extent of the President’s control over these bodies.