On January 23, 2025, President Trump made headlines by signing a new executive order in the Oval Office. This order, titled “Ensuring Accountability for All Agencies,” aims to give Trump more control over executive branch policies.
This order extends direct presidential oversight not only to main departments but also to independent agencies. These include important organizations like the Securities and Exchange Commission and the Federal Trade Commission. Along with a deregulation order from January 31, this accountability move is expected to bring more clarity and benefits to regulatory policies.
The Accountability Order focuses on two main areas: regulatory review and supervision of executive branch policies.
Regulatory Review
Since the 1970s, various presidential orders have required the Office of Management and Budget (OMB) to analyze the economic impact of major rules created by federal agencies. The new order expands this review to include independent agencies as well.
Under the Accountability Order, independent agencies must follow Trump’s earlier directive to limit new regulations. Specifically, for every new regulation proposed, these agencies must repeal ten existing ones. This approach is intended to reduce the overall regulatory burden.
By implementing regulatory budgets, this order aims to tackle excessive regulations agency by agency. Many studies show that overregulation can have significant costs for businesses and consumers. By cutting back on these regulations, the order hopes to encourage economic growth.
Independent agencies play a crucial role in various sectors, including finance, telecommunications, and energy. Their regulations influence daily life, making this order potentially impactful across the economy.
Supervision of Policies
The Accountability Order establishes regular reporting from independent agencies to the President. This is meant to ensure that agency actions align with the President’s goals and that reforms are carried out effectively.
Agency heads will work with White House officials and report on their performance in reaching set objectives. Furthermore, the President and the Attorney General are tasked with providing clear interpretations of laws, promoting consistency and reducing confusion in legal matters.
Legal challenges to this order would likely struggle in court, as the Constitution grants the President broad powers to oversee the executive branch. This includes the authority to guide how laws are interpreted and enforced.
Looking Ahead
The Accountability Order aims to boost economic growth while ensuring that federal agencies are accountable to the public. By aligning agency actions with the President’s policies, it seeks to enhance the government’s effectiveness. With legal backing, this order could significantly shape the regulatory landscape in the coming years.
