President Donald Trump is preparing to sign an executive order launching a broad review of federal regulations.
The order will direct agencies to evaluate their rules to ensure alignment with the administration’s policies and the DOGE initiative, led by billionaire Elon Musk. The initiative focuses on reducing federal spending and workforce levels while restructuring government operations.
Federal agencies face elimination
The executive order grants Musk greater oversight of cost-cutting measures, despite ongoing legal challenges questioning its scope and authority. The administration is also moving forward with plans to eliminate several federal agencies and councils. Among those targeted are the Community Bank Advisory Council, the Credit Union Advisory Council, and the U.S. Institute of Peace.
According to a White House fact sheet, the directive aims to minimize federal bureaucracy and promote efficiency. Additional entities slated for removal include the U.S. African Development Foundation, the Academic Research Council, and the Presidential Management Fellows Program. Trump has also announced plans to weaken the Consumer Financial Protection Bureau, which he claims to have significantly curtailed.
Workforce reductions under DOGE initiative
The DOGE initiative has already resulted in significant workforce reductions through voluntary buyouts. Around 75,000 federal employees accepted early retirement, representing about 3% of the 2.4 million civilian workforce. However, this figure falls short of the White House’s goal of cutting 5 to 10 percent of federal employees.
As a result, Trump has signed an order instructing agency heads to prepare for large-scale layoffs. The administration asserts that these cuts will enhance accountability and reduce waste. However, critics argue that such moves may disrupt essential government services and lead to legal challenges over employee rights.
Legal battles and financial impact
The drive to reorganize federal agencies created legal disputes regarding the authority of DOGE. A federal judge delivered a ruling that enables DOGE teams to operate on government systems while handling workforce reduction implementations. There are ongoing doubts about Musk’s participation and potential self-serving motives.
The complete economic effect of these budget reductions remains unknown. The budget reductions proposed by Trump have not received a clear plan for dividend distribution to taxpayers. Despites promise of operational efficiency improvements the administration faces criticism from opponents about potential big changes in government procedures. The upcoming years will bring intense struggles about regulatory changes that will determine federal government direction.