President Mandates Cuts to Reduce Federal Bureaucracy Size
Published Date: 3/20/2025
Presidential Document
Summary
The President is cutting down parts of several government groups that aren’t required by law, making them smaller and more focused. Agencies like the Federal Mediation Service and Minority Business Agency must report their progress within a week, and budget requests that don’t follow these rules will be denied. This move aims to save money and streamline government work starting immediately.
Analyzed Economic Effects
5 provisions identified: 0 benefits, 5 costs, 0 mixed.
Minority Business Support Reduced
The order requires the Minority Business Development Agency to eliminate non‑statutory components and reduce its statutory functions and personnel to the minimum required by law. Funding requests inconsistent with this order may be rejected, which could reduce grants, technical assistance, or other support available to minority-owned small businesses.
Community Development Finance Shrunk
The order directs the Community Development Financial Institutions Fund to eliminate non‑statutory components and reduce statutory functions and personnel to the minimum required by law. The Director of OMB may reject budget or grant requests that are inconsistent with this order, which could reduce funding or support for community lenders and borrowers who use CDFI programs.
Homelessness Coordination Scaled Back
The order requires the United States Interagency Council on Homelessness to eliminate non‑statutory components and reduce statutory functions and personnel to the minimum required by law. Budget or grant requests inconsistent with the order may be rejected, which could reduce federal coordination or programs related to homelessness.
Labor Mediation Services Limited
The order requires the Federal Mediation and Conciliation Service to eliminate non‑statutory components and reduce statutory functions and personnel to the minimum required by law. OMB review may reject funding requests that conflict with the order, which could reduce available federal mediation services for employers and employees.
Museums and Libraries Federal Support Cut
The order directs the Institute of Museum and Library Services to eliminate non‑statutory components and reduce statutory functions and personnel to the minimum required by law. The Director of OMB may reject funding requests inconsistent with this order, which could reduce federal grants or programs that support museums and libraries.
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Key Dates
Department and Agencies
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