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President Donald Trump has signed an executive order aimed at increasing accountability and oversight of federal regulatory agencies, ensuring they operate under the supervision of the President and remain answerable to the American people.
The order, titled
Ensuring Accountability for All Agencies, seeks to address what the administration describes as a lack of sufficient oversight of so-called "independent regulatory agencies," which have historically operated with minimal presidential control.
The executive order says the constitutional principle that all executive power is vested in the President, who is accountable to the American people. It argues that previous administrations have allowed independent regulatory agencies to wield significant authority without adequate presidential oversight, undermining accountability and coherence in the execution of federal law.
The order outlines several measures to strengthen presidential supervision of federal agencies and improve accountability:
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OIRA Review of Agency Regulations:
All executive departments and agencies, including independent regulatory agencies, must submit 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. This ensures that regulations align with the President’s policies and priorities.
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Performance Standards and Management Objectives:
The Director of the Office of Management and Budget (OMB) is tasked with establishing performance standards and management objectives for heads of independent regulatory agencies. The Director will also report periodically to the President on their performance and efficiency.
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Apportionments for Independent Regulatory Agencies:
The OMB Director will review and adjust the apportionments of independent regulatory agencies to ensure their activities align with the President’s policies and priorities. This includes the authority to restrict expenditures on specific activities or projects if necessary.
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Consultation with the Executive Office of the President:
Independent regulatory agency chairmen are required to regularly consult with the OMB Director, the White House Domestic Policy Council, and the White House National Economic Council. Agencies must also establish a White House Liaison position to facilitate coordination.
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Authoritative Interpretations of Law:
The President and the Attorney General will provide authoritative interpretations of the law for the executive branch. Federal employees are prohibited from advancing legal interpretations that contradict the President or Attorney General’s opinions unless explicitly authorized.
The executive order asserts that the current structure of independent regulatory agencies undermines accountability to the American people. By allowing these agencies to operate with minimal presidential oversight, previous administrations have created a system where significant regulatory actions are implemented without review by the President, who is directly accountable to voters.
“For the Federal Government to be truly accountable to the American people, officials who wield vast executive power must be supervised and controlled by the people’s elected President,” the order states. It aims to restore a unified and coherent execution of federal law by ensuring that all executive branch agencies operate under the President’s supervision.
The order explicitly exempts the Board of Governors of the Federal Reserve System and the Federal Open Market Committee in their conduct of monetary policy. However, it applies to the Federal Reserve in matters related to the supervision and regulation of financial institutions.
reason.com
Brianne Pfannenstiel
