Federal Power Shift: Major Administrative & Accountability Reforms Reshaping Government

Apr 6

The federal government is undergoing significant administrative and regulatory reforms under the new Trump administration. With a strong focus on streamlining government operations and centralizing executive authority, a series of executive actions have been issued to reshape agency oversight, regulatory processes, and federal spending.

These changes will have far-reaching effects on federal agencies, contractors, and regulatory compliance structures. Below is a summary of the key policy shifts, their implications, and recommended action steps for organizations navigating this evolving landscape.

Establishing And Implementing The President’s “Department Of Government Efficiency” & Ensuring Lawful Governance and Implementing the President’s "Department of Government Efficiency" Regulatory Initiative (DOGE) (Jan. 20 & Feb 19, 2025)

The federal government’s latest efficiency overhaul begins with the establishment of the Department of Government Efficiency (DOGE), an initiative designed to modernize operations and place executive oversight at the center of agency administration. At the heart of this transformation is the renaming of the United States Digital Service (USDS) as the U.S. DOGE Service (USDS), a move that signals a broader push to standardize and streamline digital government functions.

Under this directive, each federal agency will be assigned a DOGE Team, tasked with ensuring that efficiency measures are implemented consistently across departments. While supporters view DOGE as a necessary step toward a leaner, more accountable government, critics warn that increased executive oversight could limit agency autonomy, inject politics into government operations, and slow down decision-making at the operational level.

For federal agencies, the implications are immediate. IT systems must be evaluated and upgraded to ensure compliance with new efficiency mandates. Contractors working on government projects - especially those in technology and data management - should anticipate stricter oversight and more rigorous performance expectations. Additionally, agencies will need to establish and train their DOGE Teams to align with the administration’s vision, ensuring that efficiency targets are met without disrupting essential functions.

The new administration has wasted no time in reshaping the regulatory landscape, issuing a series of executive orders that halt, reverse, or fundamentally restructure federal oversight and spending. These actions reflect a broader shift toward executive control, deregulation, and fiscal conservatism, with significant implications for federal agencies, businesses, and advocacy groups.

Unleashing Prosperity Through Deregulation (Jan. 31, 2025)

In an effort to reduce overall regulation and halt the momentum of the previous administration's policies, the White House ordered a requirement that for every new federal regulation issued, agencies must identify at least 10 existing regulations to eliminate. The order defines “regulation” broadly, including formal rules, memoranda, guidance documents, and interagency agreements, except those related to national security, internal agency structure, or those explicitly exempted by the OMB.

For industries that rely on federal regulations - from environmental compliance to healthcare reimbursement policies - this freeze introduces significant uncertainty. Health insurance carriers can expect reversal of recent health-related guidance documents (e.g., those on mental health parity, surprise billing enforcement, price transparency), creating significant uncertainty if compliance standards are eliminated rapidly.

Companies awaiting new federal regulations should prepare for delays and possible reversals, while regulated industries must remain engaged in the public comment process as agencies reevaluate pending rules.

Initial Rescissions Of Harmful Executive Orders And Actions & Additional Rescissions of Harmful Executive Orders and Actions (Jan. 20, 2025 & March 14, 2025)

The administration is also dismantling key policies from 2021 to 2024, revoking diversity and equity initiatives, environmental protections, pandemic-era regulations, and labor protections. This rollback affects everything from federal hiring practices to biomanufacturing subsidies and contractor wage requirements.

The reversal of DEI programs will have immediate consequences for federal hiring and contracting, likely reducing workforce diversity initiatives and altering procurement policies.

For businesses and agencies, these shifts demand a reassessment of compliance requirements. Companies that structured hiring, wage, or procurement policies around federal DEI or labor mandates may need to adjust strategies accordingly. Additionally, industries affected by environmental rollbacks should expect deregulation in key sectors, though state-level policies may still hold sway.

Ensuring Accountability for All Agencies (Feb. 18, 2025)

A significant expansion of presidential oversight, this order places independent regulatory agencies under direct White House supervision. Going forward, all proposed and final regulations from these agencies must be submitted for review by the Office of Information and Regulatory Affairs (OIRA), effectively ending the autonomy of many independent bodies.

This centralization of power will likely slow the regulatory process, as agencies navigate an added layer of oversight before implementing new rules. Industries that rely on independent agencies - such as finance, healthcare, and environmental compliance - should anticipate delays in regulatory approvals and possible shifts in enforcement priorities.

For businesses that depend on stable regulatory frameworks, understanding how OIRA's new role affects compliance timelines will be crucial. Organizations should monitor policy changes closely and engage in the regulatory process to anticipate how these new constraints will impact operations.

Commencing the Reduction of the Federal Bureaucracy (Feb. 19, 2025)

As part of the administration’s broader push to shrink the size of the federal government, this executive order directs agencies to eliminate regulations deemed unconstitutional, excessive, or politically motivated. Additionally, it orders a reduction in federal bureaucracy, including closing non-statutory agencies and advisory councils.

The deregulation push is expected to benefit businesses in sectors that have long faced compliance burdens, but it also creates legal uncertainty, particularly for companies that have structured operations around existing federal requirements. Additionally, job losses within federal agencies could impact government services, leading to potential delays in program administration.

Agencies and businesses alike should prepare transition plans for workforce reductions, track which regulations are eliminated, and assess legal risks associated with compliance uncertainty.

Implementing the President’s "Department of Government Efficiency" Cost Efficiency Initiative (Feb. 26, 2025)

The administration has ordered greater transparency in federal spending, stricter oversight of contracts and grants, and a temporary freeze on government credit card use. This directive imposes stricter controls on federal expenditures, including a temporary freeze on government credit card use and a mandate that all spending (grants, contracts, and even travel) be justified in writing before approval.

While the stated goal is greater transparency, the practical impact will be slower disbursements, heightened scrutiny, and significantly more paperwork for both agencies and contractors. Watchdog groups will also gain increased visibility into financial data, likely amplifying public and political scrutiny.

More notably, this initiative signals a deeper shift in how funding decisions are made: part of the ongoing review will involve ensuring that expenditures align with administration priorities - specifically avoiding programs associated with DEI, climate initiatives, or gender-related services. Organizations whose funding is tied to such efforts should be prepared for closer examination, or outright elimination, of financial support.

Contractors and agencies must also recognize that funding streams may be cut off without advance notice, particularly if a program is deemed misaligned with the administration’s policy agenda. To remain competitive and compliant, federal agencies should implement robust tracking and approval systems, while contractors should brace for more demanding documentation and audit requirements.

Ensuring the Enforcement of Federal Rule of Civil Procedure 65(c) (Mar. 11, 2025)

The administration is also taking aim at legal challenges against federal policies, issuing an order that makes it more difficult for advocacy groups to sue the government. Under Federal Rule of Civil Procedure 65(c), plaintiffs who seek and lose an injunction against federal actions must cover damages incurred by the government.

This change creates a significant financial deterrent for lawsuits challenging federal policies, particularly in areas such as civil rights, environmental protection, and labor law. While the administration argues that this will reduce frivolous litigation, critics warn that it weakens judicial oversight and limits avenues for holding the government accountable.

Organizations involved in public interest litigation must prepare for increased legal costs, while businesses and federal agencies should anticipate fewer legal roadblocks when implementing new policies.

The Bigger Picture: A Shift Toward Executive Control

Taken together, these executive actions signal a clear shift toward centralized executive power, deregulation, and fiscal conservatism. The administration is prioritizing condensed government operations, reduced oversight, and tighter spending controls, while eliminating policies from the prior administration that expanded federal intervention in areas like labor, diversity, and environmental regulation.

For businesses, agencies, and advocacy groups, this means navigating an era of uncertainty, legal restructuring, and shifting compliance obligations. The key to success in this evolving landscape will be staying informed, adapting quickly, and engaging in the regulatory process to anticipate changes before they take effect.

Sources & Resources

Department of Government EfficiencyDiversity, Equity, and InclusionHealthcareProject 2025HiringMerit PayOffice of Personnel Management

The CMR Consulting Team https://cmr.consulting/team