The heads of federal agencies and departments can expect to see guidance from the Office of Management and Budget (OMB) in the near future on implementation of a new executive order that seeks to ensure presidential supervision and control of the “entire executive branch.”
The order, issued Tuesday by President Donald Trump (R), would appear to apply to all the federal financial regulators, among them the Consumer Financial Protection Bureau (CFPB), Federal Reserve Board, Federal Deposit Insurance Corp. (FDIC), National Credit Union Adminstration (NCUA), and Office of the Comptroller of the Currency (OCC).
While not naming most of those agencies (rather, it uses the term “all”), the order does provide a caveat for the Fed, stating that it does not apply to the Fed Board or the Federal Open Market Committee (FOMC) in the conduct of monetary policy. “This order shall apply to the Board of Governors of the Federal Reserve System only in connection with its conduct and authorities directly related to its supervision and regulation of financial institutions,” the order states.
It also states that all executive departments and agencies, “including so-called independent agencies, shall submit for review all proposed and final significant regulatory actions to the Office of Information and Regulatory Affairs (OIRA) within the Executive Office of the President before publication in the Federal Register.”
As part of this assertion of control, the order states that all independent agency heads must create a position of White House Liaison in their respective agencies at grade 15 of the General Schedule and placed in Schedule C of the excepted service. (Schedule C appointments are excepted from the competitive service and are filled through the Office of Personnel Management, with the approval of the White House Office of Presidential Personnel.)
It states that the Office of Management and Budget – who is currently Russell Vought (currently also serving as acting CFPB director) – will establish performance standards and management objectives for independent agency heads “as appropriate and consistent with applicable law.”
It adds that on questions of law, the president and attorney general – who, it notes, is subject to the president’s supervision and control – are the final word on behalf of the executive branch. “No employee of the executive branch acting in their official capacity may advance an interpretation of the law as the position of the United States that contravenes the President or the Attorney General’s opinion on a matter of law, including but not limited to the issuance of regulations, guidance, and positions advanced in litigation, unless authorized to do so by the President or in writing by the Attorney General,” it states.
The order says the OMB director will provide guidance on implementation of the order “to the heads of executive departments and agencies newly submitting regulatory actions under section 3(b) of Executive Order 12866” (which was issued by former President Bill Clinton). “Agency submissions by independent regulatory agencies under such section shall commence within the earlier of 60 days from the date of this order, or completion of such implementation guidance,” it states.
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