Donald Trump has enacted an executive order which now holds independent regulatory agencies established by Congress accountable to the White House – a decision that some experts believe conflicts with common interpretations of the Constitution.
This order mandates significant regulators like the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) to present new policy initiatives to the executive branch for approval. Additionally, the executive branch will influence their budgetary decisions.
In a fact sheet, the White House characterized this action as, “ensuring that all federal agencies are accountable to the American public, as mandated by the Constitution.”
“The Order highlights that Article II of the US Constitution consolidates all executive power in the President, indicating that all officials and employees of the executive branch are under his supervision,” the fact sheet noted. The order will also be applicable to the Federal Reserve but exclude the central bank’s control over monetary policy.
This latest move from the Trump administration appears to be an expansion of power, granting the office of management and budget head, Russell Vought, oversight over a range of significant agencies, including those regulating Wall Street, campaign finance, telecommunications, labor, and even the Postal Service.
The Trump order is consistent with campaign promises to enhance the accountability of independent agencies to the president, reflecting a commitment made by Vought in 2023: “Our objective is to identify areas of independence and take control of them.”
This development arrives as the White House has been working to dramatically alter the US government, including attempts to appropriate Congress’s “power of the purse.” The administration contends that it can refuse to utilize funds allocated by Congress, defying the Impoundment Act of 1974, which explicitly prohibits such actions. So far, the main opposition has come through the courts, the third co-equal branch of government, rather than the Republican-majority Congress.
Among Trump’s most notable efforts to cut spending are initiatives by “Doge,” a nonsanctioned department led by billionaire Elon Musk. Experts claim a variety of cuts implemented by Doge are “unlawful” and have become the subject of litigation.
The president has also dismissed independent oversight officials of government agencies, sought to abolish birthright citizenship, dismantled the foreign aid agency USAid, mandated significant reductions in biomedical research funding, and enforced a funding freeze, alongside numerous executive actions made in Trump’s initial weeks in office which override congressional authority, and are currently under legal challenge.
“The [order] instructs that all independent agencies must defer to the office of management and budget (OMB) and the directives of Trump’s OMB lieutenant, Russ Vought,” stated Robert Weissman, co-president of the consumer advocacy organization Public Citizen.
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“According to the [executive order], the rules set by independent agencies would require approval from OMB and Vought, their funding would be determined by OMB and Vought, and they would have to adhere to the policy mandates of the White House,” remarked Weissman.
Weissman contended that this maneuver aims to protect large corporations from the oversight of independent agencies. The SEC, for instance, frequently conducts investigations into large corporations for the benefit of shareholders.
“Interestingly, both the FTC and SEC are currently involved in investigations or enforcement actions regarding companies owned by Elon Musk,” Weissman pointed out.
