Saying that independent agencies “have exercised enormous power over the American people without Presidential oversight,” President Trump has issued an Executive Order placing those agencies under his control.
While Trump specifically mentioned the FTC, FCC and SEC, the definition of “agency” used in the order also includes such financial regulators as the FDIC, OCC, CFPB and NCUA.
Trump said that Article II of the Constitution places all executive power in the President, meaning all employees are subject to his supervision.
Specifically, Trump said that independent agencies must:
- Submit draft regulations for White House review, with no carve-out for independent agencies, with the exception of monetary policy functions of the Federal Reserve.
- Consult with the White House on their priorities and strategic plans.
The White House will set the agencies’ performance standards. The White House also will adjust “so-called” independent agencies’ apportionment to ensure tax dollars are well spent. Finally, the President and Attorney General will interpret the law for executive branch agencies instead of agencies’ adopting conflicting views.
Until now, each independent agency has issued its own rules, and most financial regulators have been funded by fees paid by those entities they regulate, making it unclear how such funds might be “apportioned” in the future.
The order immediately drew criticism. Robert Weissman, co-president of Public Citizen blasted the administration for issuing the Executive Order. “This is a profoundly dangerous idea for the nation’s health, safety, environment and economy – and for our democracy,” he said. “Congress made independent agencies independent of the White House for good reason.”
He said that Trump’s order seeks to shield corporations from accountability and to centralize more power with the administration.
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