Trump executive order puts independent agencies on a leash

President Trump’s new executive order, “Ensuring Accountability for All Agencies,” marks a major shift in regulatory oversight by bringing independent agencies under White House review.

Historically, agencies like the Federal Trade Commission (FTC), Federal Communications Commission (FCC), and Securities and Exchange Commission (SEC) have operated without direct presidential oversight despite issuing costly regulations. This new directive closes the gap, ensuring that all agencies’ major rules are subject to scrutiny similar to that of all executive agencies (which isn’t much, but that’s another story).

Granted, independent agencies’ regulations have been listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions; and they are subject to the Congressional Review Act (CRA), which allows Congress to overturn rules (those exceeding a $100 million economic effect threshold are ones of particular interest).

However, these agencies have largely avoided the kind of Office of Management and Budget (OMB) review that executive agencies undergo. Trump’s order changes this, reinforcing accountability and preventing unelected regulators from wielding unchecked power to the extent the OMB apparatus works as a restrainer.

The timing is critical. As the accompanying bar chart based on the past decade’s editions of the Unified Agenda illustrates, Biden’s administration significantly increased the number of major rules, surpassing previous presidents.

Reaffirming what we see in the Agenda, according to the Government Accountability Office’s (GAO) database of major rules, Biden issued an average of 116 major rules per year, compared to Trump’s 86 (which is an overcount because it included deregulatory actions), Obama’s 84, and Bush’s 62.

The Biden surge underscores the growing regulatory burden and the need for stronger oversight.

Notable independent agency rules from Biden’s term include the Federal Energy Regulatory Commission’s transmission regulations, FTC’s online consumer review standards, and multiple SEC and Consumer Financial Protection Bureau measures. These particular ones are vulnerable to CRA overturn. With independent agencies now under review, Trump’s initiative should slow the rulemaking spree for the time being.

A key issue remains: ensuring this reform lasts. Independent agencies contribute significantly to the regulatory burden. Without permanent legislative backing, a future progressive administration will reverse Trump’s order. Congress must codify independent agency oversight to prevent future regulatory overreach.

For more see: “Major Rule Mayhem And The Discipline Of Federal Independent Regulatory Agencies,” Forbes