Labor & Employment Law Daily Wrap Up, WHITE HOUSE NEWS—EO requires agency employees to defer to president, AG for interpretation of law, (Feb 19, 2025)

By Patricia K. Ruiz, J.D.

The director of the OMB will provide guidance on the implementation of the order, the EO states.

An executive order (EO) from the Trump administration requires all agencies to submit draft regulations for White House review, with no exceptions for independent agencies, except for the monetary policy functions of the Federal Reserve. The EO, which the White House published with an accompanying fact sheet, states that the president and the attorney general (AG)—subject to the president’s supervision and control—will interpret the law for the executive branch, instead of having separate agencies adopt conflicting interpretations.

Consultation with White House; apportionments. Under the EO, in addition to submitting draft regulations for review, all agencies must consult with the White House on their priorities and strategic plans, with the White House setting their performance standards. Additionally, the EO requires the Office of Management and Budget to adjust independent agencies’ apportionments to ensure tax dollars are spent wisely.

Interpretation of questions of law. Under the EO, the president and the attorney general, subject to the president’s supervision and control, will provide authoritative interpretations of law for the executive branch. The opinions of the president and AG on questions of law are controlling on all employees in the conduct of their official duties, the EO states, and no employee of the executive branch acting in their official capacity may advance as the position of the U.S. an interpretation that contravenes the president’s or the AG’s opinion on a matter of law, unless otherwise authorized to do so by the president or in writing by the attorney general.

Independent agencies. The EO purports to rein in “so-called independent agencies” such as the Federal Trade Commission (FTC), the Federal Communications Commission (FCC), and the Securities and the Securities and Exchange Commission (SEC), which the EO’s fact sheet states “have exercised enormous power over the American people without presidential oversight.” The EO requires that independent regulatory agency chairmen must regularly consult with the directors of OMB, the White House Domestic Policy Council, and the White House National Economic Council. The chairmen must also submit agency strategic plans developed pursuant to the Government Performance and Results Act of 1993 to the Director of OMB for clearance prior to finalization.

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