Continuing the Reduction of the Federal Bureaucracy
March 14, 2025
Action Summary
- Purpose: Continue reducing elements of the Federal bureaucracy deemed unnecessary by eliminating non-statutory components and functions.
- Scope of Reduction: Targeted government entities include:
- Federal Mediation and Conciliation Service
- United States Agency for Global Media
- Woodrow Wilson International Center for Scholars in the Smithsonian Institution
- Institute of Museum and Library Services
- United States Interagency Council on Homelessness
- Community Development Financial Institutions Fund
- Minority Business Development Agency
- Compliance Reporting: Within 7 days, heads of these entities must report to the Director of the Office of Management and Budget on which statutory functions and components remain required.
- Budget Review Adjustments: Funding and budget requests for these entities will be critically reviewed and may be rejected if they do not comply with the order, except where necessary for an expected termination.
- General Provisions:
- Existing statutory authority of executive departments and agencies remains unaffected.
- Implementation is subject to applicable law and availability of appropriations.
- The order does not create any enforceable rights or benefits against the United States or its officials.
Risks & Considerations
- The Executive Order aims to reduce the scope of the Federal bureaucracy by eliminating non-statutory components and functions of several governmental entities. This could lead to a decrease in federal support and resources available to these entities, potentially impacting their ability to fulfill their missions.
- Entities such as the Institute of Museum and Library Services and the Woodrow Wilson International Center for Scholars may face significant operational challenges, which could affect their partnerships and collaborations with academic institutions like Vanderbilt University.
- The reduction in federal support for the Community Development Financial Institutions Fund and the Minority Business Development Agency could impact community engagement and development initiatives, potentially affecting Vanderbilt’s outreach and support programs.
- Vanderbilt University may need to reassess its reliance on federal partnerships and funding from the affected entities, as these changes could alter the landscape of available resources and collaboration opportunities.
Impacted Programs
- Vanderbilt’s Libraries and Museums may experience reduced federal support, necessitating adjustments in funding strategies and potential collaborations with other institutions to maintain their operations and services.
- The Office of Community Engagement might need to explore alternative funding sources and partnerships to continue supporting community development initiatives, particularly those that previously relied on federal support from the affected agencies.
- Research Centers at Vanderbilt that collaborate with entities like the Woodrow Wilson International Center for Scholars may need to seek new partnerships or funding opportunities to sustain their research activities.
Financial Impact
- The reduction in federal bureaucracy could lead to decreased funding opportunities for programs and initiatives that previously relied on support from the affected entities. This may require Vanderbilt to diversify its funding sources and explore new avenues for financial support.
- Vanderbilt University may need to adjust its budgetary planning and resource allocation to account for potential changes in federal funding availability, particularly for programs related to community development and minority business support.
- There may be increased competition for remaining federal funds, necessitating strategic planning and collaboration to secure necessary resources for Vanderbilt’s programs and initiatives.
Relevance Score: 3 (The order presents moderate risks involving compliance or ethics, particularly in terms of funding and partnerships with federal entities.)
Key Actions
- Vanderbilt’s Office of Federal Relations should monitor the impact of the reduction in federal bureaucracy, particularly focusing on the Institute of Museum and Library Services and the Woodrow Wilson International Center for Scholars, as these may affect funding and collaboration opportunities for research and educational programs.
- Vanderbilt’s Financial Planning Office should assess potential changes in federal funding streams due to the reduction of the Community Development Financial Institutions Fund and the Minority Business Development Agency, which could impact financial aid and community engagement initiatives.
- Vanderbilt’s Research Administration should evaluate the implications of reduced federal support for the United States Agency for Global Media, as this may affect international research collaborations and media-related projects.
Opportunities
- The reduction in federal bureaucracy presents an opportunity for Vanderbilt’s Policy Studies Department to conduct research on the effects of these changes on public administration and governance, potentially influencing future policy development.
- Vanderbilt’s Community Engagement Office can explore partnerships with local and state agencies to fill gaps left by the reduction of federal entities, enhancing the university’s role in regional development and support.
Relevance Score: 3 (Some adjustments are needed to processes or procedures due to potential impacts on funding and collaboration opportunities.)
Timeline for Implementation
- Within 7 days of March 14, 2025, a report must be submitted by the heads of the specified governmental entities.
Relevance Score: 5
Impacted Government Organizations
- Federal Mediation and Conciliation Service: This agency will have its non-statutory components and functions eliminated to the maximum extent permitted by law.
- United States Agency for Global Media: Its non-statutory activities are targeted for reduction in accordance with the order.
- Woodrow Wilson International Center for Scholars in the Smithsonian Institution: The order directs a reduction in its non-essential functions.
- Institute of Museum and Library Services: This entity must reduce its statutory functions and associated personnel as mandated by the order.
- United States Interagency Council on Homelessness: Subject to the reduction of its non-statutory functions and components as specified.
- Community Development Financial Institutions Fund: Its functions will be minimized to only those aspects mandated by law.
- Minority Business Development Agency: The agency is required to reduce its non-statutory functions and associated personnel to the minimum necessary.
Relevance Score: 3 (Several Federal Agencies are impacted, with a total of 7 agencies affected by the order.)
Responsible Officials
- Heads of the Listed Governmental Entities – This includes the leaders of the Federal Mediation and Conciliation Service, United States Agency for Global Media, Woodrow Wilson International Center for Scholars in the Smithsonian Institution, Institute of Museum and Library Services, United States Interagency Council on Homelessness, Community Development Financial Institutions Fund, and Minority Business Development Agency. They are required to submit a compliance report to the Director of the Office of Management and Budget.
- Director of the Office of Management and Budget – Charged with receiving compliance reports and reviewing budget requests, as well as exercising authority to reject funding requests that conflict with the order.
- Heads of Executive Departments or Agencies Charged with Grant Reviews – They share responsibility in reviewing budget and grant requests related to the affected entities and rejecting those inconsistent with the order.
Relevance Score: 4 (Directives affect agency heads and senior officials with decision-making authority across multiple governmental entities.)