Trump signs executive order to reduce the federal bureaucracy, eliminates community bank and credit union advisory committees

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On February 19, President Trump issued an executive order to significantly reduce the federal bureaucracy’s size, following the administration’s policies to minimize government waste, reduce inflation, and encourage innovation through the downsizing of the federal government. The order specifically targeted the elimination of non-statutory components and functions within certain governmental entities. The heads of these entities will be required to submit reports to the Director of the Office of Management and Budget (OMB) within 14 days, confirming compliance with the order and detailing the statutory requirements of their functions.

The order also directed the OMB Director, along with other relevant agency heads, to reject funding requests inconsistent with the order except where necessary. It revoked the Presidential Memorandum of November 13, 1961, and instructed the Director of the Office of Personnel Management to withdraw regulations that eliminate the Federal Executive Boards and terminate the Presidential Management Fellows Program.

Furthermore, the order mandated the termination of several Federal Advisory Committees within various agencies. These include the Advisory Committee on Voluntary Foreign Aid, the Academic Research Council, the Credit Union Advisory Council, the Community Bank Advisory Council, the Secretary’s Advisory Committee on Long COVID, and the Health Equity Advisory Committee. Some presidential advisors were also tasked with identifying additional unnecessary governmental entities and committees for potential termination within 30 days.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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