Continuing the Reduction of the Federal Bureaucracy
The order directs seven named federal entities — spanning labor mediation, international broadcasting, cultural institutions, homelessness policy, community finance, and minority business development — to eliminate all non-statutory components and reduce statutory operations to the bare legal minimum.
It immediately and broadly reshapes discretionary federal programming across multiple sectors, directing agency heads to self-certify compliance within 7 days and instructing OMB to cut off funding requests that do not conform.
What this order does
What it orders
The order directs seven federal entities to eliminate all non-statutory components and functions and to reduce their statutory activities to the minimum level the law requires: the Federal Mediation and Conciliation Service, the United States Agency for Global Media, the Woodrow Wilson International Center for Scholars, the Institute of Museum and Library Services, the United States Interagency Council on Homelessness, the Community Development Financial Institutions Fund, and the Minority Business Development Agency. The head of each entity must submit a compliance report to the OMB Director within 7 days identifying which functions are legally mandated and to what extent.
OMB and any executive department reviewing these entities' grant or budget requests is directed to reject funding requests inconsistent with the order, except where necessary to effectuate an expected termination. The order operates only within the bounds of applicable law, meaning it cannot itself abolish entities created by statute — full elimination would require congressional action.
Who it affects
Employees of the seven named federal entities facing workforce and program reductions; nonprofits, libraries, museums, small businesses, minority-owned enterprises, homeless service providers, and local governments that receive grants or mediation services from these agencies; and labor and management parties who rely on federal conciliation services.
Why it matters
Grants from the CDFI Fund, IMLS, and MBDA reach low-income communities, public libraries, museums, and minority-owned businesses nationwide. Reduced operations and defunded requests mean fewer grants awarded, diminished services to vulnerable populations, and significant workforce reductions across seven agencies simultaneously.
What must happen and when
How the order is supposed to work
Entity heads have 7 days to self-certify compliance and map which functions are legally required, handing OMB a blueprint of what can be cut versus what must remain. OMB then uses its budget and grant review authority to block non-conforming funding requests, providing the order's primary enforcement lever. No independent enforcement mechanism or severability clause is included; the caveat "consistent with applicable law" means statutory mandates can limit the order's reach, and OMB's discretion at the funding stage is the main implementation chokepoint.
Actions and deadlines
- Each entity head submits a compliance report to the OMB Director confirming compliance and identifying statutorily required functions
- Eliminate non-statutory components and functions of all seven listed entities to the maximum extent allowed by law
- OMB Director and relevant agency heads reject funding requests inconsistent with this order