Ensuring Accountability for All Agencies

February 18, 2025

Presidential Actions

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Action Summary

Policy and Purpose: Reaffirms the President’s constitutional duty to supervise the executive branch and mandates that all executive departments and agencies, including independent regulatory agencies, be subject to Presidential oversight.
Accountability Concerns: Criticizes past practices where independent regulatory agencies operated with minimal Presidential supervision, allowing significant regulations without review, thus undermining accountability to the American people.
Regulatory Review Process: Requires that all proposed and final significant regulatory actions be submitted to the Office of Information and Regulatory Affairs (OIRA) for review before Federal Register publication, amending provisions of Executive Order 12866.
Definitions: Clarifies terms such as “employees,” “independent regulatory agency,” “independent regulatory agency chairman,” and “head,” with specific exceptions for monetary policy activities of the Federal Reserve System.
OMB Performance Standards: Directs the Director of the Office of Management and Budget (OMB) to set performance standards and management objectives for independent agency heads, with periodic reporting to the President.
Apportionment Adjustments: Empowers the Director of OMB to review and adjust the apportionments of independent regulatory agencies to ensure consistency with Presidential policies and priorities.
Additional Consultation: Mandates that independent regulatory agency chairmen regularly consult with the OMB, White House Domestic Policy Council, and National Economic Council, and establish a White House Liaison position within their agencies.
Rules of Conduct: Establishes that the President and Attorney General provide binding interpretations of law, which all executive branch employees must adhere to in their official duties, particularly in regulatory matters and litigation positions.
General Provisions: Contains provisions ensuring that if any part of the order is invalidated, the remainder remains effective, and clarifies that the order does not impair existing legal authorities or budgetary functions.

Risks & Considerations

The Executive Order mandates increased Presidential supervision over independent regulatory agencies, which could lead to significant changes in how these agencies operate. This may result in a shift in regulatory priorities that could affect sectors relevant to Vanderbilt University, such as education, healthcare, and research.
Increased oversight and control by the Office of Information and Regulatory Affairs (OIRA) could slow down the regulatory process, potentially delaying the implementation of new policies or changes that could benefit the university.
The requirement for independent agencies to align with Presidential policies may lead to a more centralized decision-making process, which could reduce the flexibility and responsiveness of these agencies to specific needs or issues that Vanderbilt University might face.
Vanderbilt University may need to monitor changes in regulatory actions closely to ensure compliance and to anticipate any shifts in funding or policy that could impact its operations and strategic initiatives.

Impacted Programs

Vanderbilt’s Office of Government and Community Relations may need to increase its engagement with federal agencies to stay informed about regulatory changes and to advocate for the university’s interests effectively.
Research programs at Vanderbilt that rely on federal funding or are subject to federal regulations may need to adapt to new compliance requirements or shifts in funding priorities.
The School of Law might see increased demand for expertise in regulatory law and policy analysis, providing opportunities for research and collaboration with government agencies.
Healthcare-related programs could be affected by changes in regulations governing healthcare services and research, necessitating adjustments in program delivery and compliance strategies.

Financial Impact

Changes in regulatory priorities and oversight could impact federal funding allocations, potentially affecting grants and contracts that Vanderbilt University relies on for research and development.
The university may need to allocate additional resources to ensure compliance with new regulatory requirements, which could increase operational costs.
Opportunities for new funding or partnerships may arise if the university can align its strategic initiatives with the administration’s priorities, particularly in areas like healthcare, education, and technology.
Potential delays in regulatory approvals could impact the timeline and financial planning for projects that require federal oversight or collaboration.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

Office of Federal Relations should monitor the implementation of the executive order to understand how increased Presidential supervision of independent regulatory agencies might impact federal funding and regulatory processes that affect the university.
Vanderbilt’s Legal and Compliance Office should review the implications of the order on existing and future regulatory compliance requirements, ensuring that the university’s operations align with any new interpretations of law as directed by the President and the Attorney General.
Research Administration should assess how changes in the review and approval process for significant regulatory actions might affect research funding and compliance, particularly in areas involving federal grants and contracts.

Opportunities

The executive order provides an opportunity for Vanderbilt’s Public Policy Studies to engage in research and analysis on the effects of increased executive oversight on regulatory agencies, potentially influencing policy discussions and contributing to academic discourse on governance and accountability.
Vanderbilt’s Center for the Study of Democratic Institutions can explore the broader implications of the order on the separation of powers and the balance between executive and legislative authority, offering insights that could inform public debate and policy development.

Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with potential changes in regulatory oversight and compliance requirements.)

Average Relevance Score: 3.4

Timeline for Implementation

Independent regulatory agencies’ submissions must commence within the earlier of 60 days from the order date (February 18, 2025) or upon completion of the implementation guidance provided by the Director of OMB.

Relevance Score: 3

Impacted Government Organizations

Office of Information and Regulatory Affairs (OIRA): Responsible for reviewing all significant regulatory actions before they are published, ensuring Presidential oversight of the executive branch’s regulatory agenda.
Office of Management and Budget (OMB): Tasked with issuing implementation guidance, establishing performance standards for agency heads, and adjusting agency apportionments to align with Presidential priorities.
Independent Regulatory Agencies: Now required to coordinate with and submit their regulatory proposals to OIRA and OMB, thereby facing increased Presidential supervision and control.
Executive Departments and Agencies: All departments and agencies in the executive branch must now have their significant regulatory actions reviewed, ensuring a unified and accountable execution of Federal law.
White House Domestic Policy Council and National Economic Council: Independent agency leaders are mandated to consult regularly with these councils to align policies and priorities with the President’s agenda.
Department of Justice (Attorney General’s Office): Along with the President, the Attorney General is designated to provide controlling interpretations of law to guide executive branch employees.

Relevance Score: 3 (Six to ten agencies and organizational groups are directly affected by this executive order.)

Responsible Officials

Director of the Office of Management and Budget (OMB) – Charged with providing implementation guidance to agency heads, establishing performance standards, reviewing regulatory submissions, and adjusting agency apportionments to align with the President’s policies.
Heads of Executive Departments and Agencies – Responsible for submitting all proposed and significant final regulatory actions for review by OIRA as directed, ensuring compliance with the order.
Independent Regulatory Agency Chairmen/Heads – Required to consult regularly with the Director of OMB, the White House Domestic Policy Council, and the White House National Economic Council, as well as to establish a position of White House Liaison and submit strategic plans for clearance.
The President and the Attorney General – Tasked with providing authoritative interpretations of the law that guide all executive branch employees.

Relevance Score: 4 (Directives significantly affect senior agency leadership and top executive officials, impacting overall federal regulatory oversight.)