Commencing the Reduction of the Federal Bureaucracy

February 19, 2025

Action Summary

  • Purpose: Reduce the size of the Federal Government to enhance accountability, minimize waste, curb inflation, and promote American freedom and innovation.
  • Reduction Targets: Eliminate non-statutory components and functions of the Presidio Trust, Inter-American Foundation, United States African Development Foundation, and United States Institute of Peace.
  • Reporting Requirements: Within 14 days, heads of affected entities must report to the OMB Director on compliance and confirm statutory necessities.
  • Budget Review Directive: OMB and relevant agency heads are to reject funding requests inconsistent with this order, unless necessary for terminations.
  • Regulatory Changes: Revokes the Presidential Memorandum of November 13, 1961, withdraws title 5, part 960 regulations (eliminating Federal Executive Boards), and initiates termination of the Presidential Management Fellows Program by withdrawing title 5, part 362, subpart D regulations.
  • Executive Order Amendments:
    • Revokes Executive Order 13318 (November 21, 2003).
    • Amends Executive Order 13562 (December 27, 2010) by modifying several sections to remove references to the Presidential Management Fellows Program.
  • Advisory Committee Terminations: Within 14 days, specific Federal Advisory Committees across various agencies (including committees at USAID, CFPB, FDIC, HHS, and CMS) are to be terminated.
  • Identification of Additional Entities: Within 30 days, top policy advisors for national security, economic, and domestic issues will identify further unnecessary governmental entities and advisory committees for termination.
  • General Provisions: The order preserves statutory authority of agencies, requires implementation in line with applicable law and appropriations, and does not create enforceable rights against the government.

Risks & Considerations

  • The Executive Order aims to reduce the size of the Federal Government, which could lead to decreased funding and support for programs that Vanderbilt University may rely on, particularly those related to international development and peace studies.
  • The termination of the Presidential Management Fellows Program could impact Vanderbilt graduates who might have pursued careers in federal service through this pathway, potentially affecting career opportunities for students.
  • The elimination of Federal Advisory Committees, such as the Academic Research Council, may reduce opportunities for collaboration and input from academic institutions like Vanderbilt in shaping federal policies.
  • Vanderbilt may need to reassess its engagement strategies with federal agencies, as the reduction in bureaucracy could lead to changes in how grants and contracts are managed and awarded.

Impacted Programs

  • Vanderbilt’s International Studies Program may be affected by the reduction of entities like the United States African Development Foundation and the United States Institute of Peace, which could limit research and collaboration opportunities.
  • The Career Center might need to adjust its guidance and support for students interested in federal careers, given the changes to the Presidential Management Fellows Program.
  • Research initiatives that rely on federal advisory committees for guidance and funding may need to seek alternative sources of support and collaboration.

Financial Impact

  • The reduction in federal bureaucracy could lead to a decrease in available federal funding for certain programs, necessitating a shift in Vanderbilt’s funding strategies and priorities.
  • Vanderbilt may need to explore new partnerships and funding sources to compensate for potential reductions in federal support, particularly in areas related to international development and peace studies.
  • Changes in federal grant management processes could impact the university’s ability to secure funding, requiring adjustments in grant application and management practices.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential impacts on funding and career opportunities for students.)

Key Actions

  • Vanderbilt’s Office of Federal Relations should monitor the impact of the reduction in federal bureaucracy on funding opportunities and partnerships, particularly with entities like the United States Institute of Peace and the United States African Development Foundation. Understanding these changes will be crucial for maintaining and developing strategic partnerships.
  • Vanderbilt’s Career Center should assess the implications of the termination of the Presidential Management Fellows Program on student career opportunities in federal government roles. This may require developing alternative pathways and partnerships to support students interested in public service careers.
  • The Department of Political Science should conduct research on the broader impacts of reducing federal bureaucracy on governance and public policy. This research can provide valuable insights into how these changes affect government efficiency and public service delivery.

Opportunities

  • The executive order presents an opportunity for Vanderbilt’s Center for the Study of Democratic Institutions to engage in research and dialogue on the implications of reducing federal bureaucracy. By hosting conferences and workshops, the center can position itself as a leader in discussions on government reform and innovation.
  • Vanderbilt can capitalize on the increased focus on reducing government waste by developing programs and initiatives that promote efficiency and innovation in public administration. This could include partnerships with government agencies and think tanks to explore best practices and new models of governance.

Relevance Score: 3 (Some adjustments are needed to processes or procedures due to changes in federal programs and partnerships.)

Average Relevance Score: 4

Timeline for Implementation

  • Within 14 days: The heads of the specified unnecessary governmental entities must submit a report to the OMB Director, and designated agency heads must act to terminate certain Federal Advisory Committees.
  • Within 30 days: The Assistants to the President for National Security Affairs, Economic Policy, and Domestic Policy are to identify and submit a list of additional unnecessary governmental entities and Federal Advisory Committees for termination.

Relevance Score: 5

Impacted Government Organizations

  • Presidio Trust: Its non-statutory components and functions are ordered to be eliminated.
  • Inter‐American Foundation: Marked for maximum reduction by eliminating non-statutory components.
  • United States African Development Foundation: Subject to a significant reduction in statutory functions and personnel.
  • United States Institute of Peace: Non-statutory functions are to be reduced in line with the reduction directive.
  • Office of Management and Budget (OMB): The OMB Director is tasked with receiving compliance reports and reviewing budget requests related to the affected entities.
  • Office of Personnel Management (OPM): Directed to withdraw regulations and terminate programs, including the Federal Executive Boards and Presidential Management Fellows Program changes.
  • United States Agency for International Development (USAID): Its Advisory Committee on Voluntary Foreign Aid is to be terminated.
  • Bureau of Consumer Financial Protection: Directed to terminate both the Academic Research Council and the Credit Union Advisory Council.
  • Federal Deposit Insurance Corporation (FDIC): Tasked with terminating its Community Bank Advisory Council.
  • Department of Health and Human Services (HHS): Its Advisory Committee on Long COVID is ordered for termination.
  • Centers for Medicare and Medicaid Services (CMS): Directed to terminate the Health Equity Advisory Committee.

Relevance Score: 4 (Eleven agencies and offices are directly impacted by the order.)

Responsible Officials

  • Heads of the Unnecessary Governmental Entities – Includes the heads of the Presidio Trust, Inter-American Foundation, U.S. African Development Foundation, and U.S. Institute of Peace; each is required to submit a report on compliance with the order.
  • Office of Management and Budget (OMB) Director – Charged with receiving reports from the aforementioned heads and reviewing budget requests, particularly rejecting funding inconsistent with the order.
  • Director of the Office of Personnel Management (OPM) – Responsible for initiating the withdrawal of specified regulations and terminating the Presidential Management Fellows Program as directed.
  • Administrator of the United States Agency for International Development – Tasked with terminating the Advisory Committee on Voluntary Foreign Aid.
  • Director of the Bureau of Consumer Financial Protection – Responsible for terminating the Academic Research Council and the Credit Union Advisory Council.
  • Board of Directors of the Federal Deposit Insurance Corporation – Charged with terminating the Community Bank Advisory Council.
  • Secretary of Health and Human Services – Directed to terminate the Secretary’s Advisory Committee on Long COVID.
  • Administrator of the Centers for Medicare and Medicaid Services – Tasked with terminating the Health Equity Advisory Committee.
  • Assistants to the President for National Security Affairs, Economic Policy, and Domestic Policy – Required to identify and submit additional unnecessary governmental entities and Federal Advisory Committees for termination.

Relevance Score: 5 (Directives impact agency heads and high-ranking White House officials, affecting strategic policy and operational oversight.)