Trump’s Executive Order Expands Presidential Power Over Independent Agencies
President Donald Trump has signed a new executive order that dramatically increases presidential control over independent federal agencies. This move marks a significant shift in how these agencies operate, as they have historically been designed to function without direct White House influence. The order requires agencies such as the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) to align more closely with presidential priorities. However, it specifically exempts the Federal Reserve’s Board of Governors and Open Market Committee, preserving their independence in monetary policy decisions.
This executive order compels independent agencies to submit new regulations for White House review, establish liaison offices, and coordinate policies with the administration. It also grants the president and attorney general the exclusive authority to interpret laws for the executive branch. Critics argue that this move undermines the agencies’ independence and could lead to increased political influence over financial regulations, labor laws, and trade policies.
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Trump’s push to consolidate power over these agencies is consistent with his broader efforts to expand executive authority. Throughout his presidency, he has dismissed multiple officials at independent agencies, such as the Equal Employment Opportunity Commission and the National Labor Relations Board, sparking legal battles over the legality of such firings. This new executive order is expected to face similar legal challenges, as opponents claim it contradicts long-standing precedents that protect the autonomy of regulatory bodies.
A key figure behind this policy shift is Russell Vought, former director of the Office of Management and Budget. He has publicly advocated against the idea of independent agencies, arguing that they should be fully integrated under the president’s control. His stance aligns with Project 2025, a conservative blueprint for government restructuring that challenges the legal foundation of independent agencies. The plan cites a 1935 Supreme Court ruling, Humphrey’s Executor v. U.S., which limits a president’s ability to remove agency heads without cause. Legal experts believe the current conservative-leaning Supreme Court may be inclined to revisit and potentially overturn this precedent, further empowering the executive branch.
Supporters of Trump’s order argue that it restores accountability, ensuring that agencies operate in line with the elected government’s agenda rather than acting as independent entities with unchecked power. They claim that these agencies wield significant influence over the economy and regulatory policies without sufficient oversight from the president. However, opponents warn that this shift could lead to regulatory instability, as rules and policies may change drastically with each new administration.
The exclusion of the Federal Reserve from the order suggests that Trump is strategically avoiding direct legal battles over monetary policy control. The Federal Reserve’s independence has long been seen as crucial to economic stability, preventing political pressures from influencing interest rates and financial decisions. While the executive order does not extend to the Fed, critics argue that it sets a dangerous precedent for future attempts to erode agency independence.
Ultimately, this executive order represents one of the most aggressive efforts to expand presidential authority over independent agencies in modern history. Whether it withstands legal challenges or reshapes the balance of power in Washington will depend on how courts interpret its implications. As legal battles unfold, the future of independent regulatory agencies—and their ability to operate without direct political interference—remains uncertain.
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