Continuing the Reduction of the Federal Bureaucracy
Signed: March 14, 2025
Published: March 20, 2025
Document Number: 2025-04868
📋Summary
This executive order directs several federal entities to eliminate as many non-required (non-statutory) programs and functions as the law allows, and to scale back any legally required duties and staffing to the minimum level needed. It affects the Federal Mediation and Conciliation Service, U.S. Agency for Global Media, Woodrow Wilson International Center for Scholars, Institute of Museum and Library Services, U.S. Interagency Council on Homelessness, Community Development Financial Institutions Fund, and Minority Business Development Agency. Within 7 days, the head of each entity must report to the Office of Management and Budget (OMB) confirming compliance and identifying what functions are legally required. OMB and other reviewing agencies are instructed to deny budget and grant funding requests from these entities when the requests conflict with the order, consistent with existing law and available funding.
💼Business Impact
This order most directly affects businesses that rely on federal grants, technical assistance, or financing tied to the listed entities—especially minority-owned and small businesses (MBDA programs), community lenders and developers (CDFI Fund), museums/libraries and their vendors (IMLS), homelessness-service contractors (USICH), and employers that use federal mediation services for labor disputes (FMCS). Expect near-term disruption or wind-down of discretionary (non-statutory) programs, slower grant/loan processing, reduced outreach/support services, and tighter funding as OMB and other reviewers are directed to reject requests inconsistent with the downsizing. Businesses should immediately inventory any current or pending awards, applications, or partnerships connected to these entities, accelerate submissions and drawdowns where allowed, and build contingency plans (alternative lenders, state/local programs, private philanthropy, or other federal channels) while monitoring agency/OMB guidance over the next few weeks for program terminations and revised eligibility/administration.
Full Text
Executive Order 14238 of March 14, 2025
Continuing the Reduction of the Federal Bureaucracy
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
Section 1 . Purpose. This order continues the reduction in the elements of the Federal bureaucracy that the President has determined are unnecessary.
Sec. 2 . Reducing the Scope of the Federal Bureaucracy.
(a) Except as provided in subsection (b) of this section, the non-statutory components and functions of the following governmental entities shall be eliminated to the maximum extent consistent with applicable law, and such entities shall reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law:
(i) the Federal Mediation and Conciliation Service;
(ii) the United States Agency for Global Media;
(iii) the Woodrow Wilson International Center for Scholars in the Smithsonian Institution;
(iv) the Institute of Museum and Library Services;
(v) the United States Interagency Council on Homelessness;
(vi) the Community Development Financial Institutions Fund; and
(vii) the Minority Business Development Agency.
(b) Within 7 days of the date of this order, the head of each governmental entity listed in subsection (a) of this section shall submit a report to the Director of the Office of Management and Budget confirming full compliance with this order and explaining which components or functions of the governmental entity, if any, are statutorily required and to what extent.
(c) In reviewing budget requests submitted by the governmental entities listed in subsection (a) of this section, the Director of the Office of Management and Budget or the head of any executive department or agency charged with reviewing grant requests by such entities shall, to the extent consistent with applicable law and except insofar as necessary to effectuate an expected termination, reject funding requests for such governmental entities to the extent they are inconsistent with this order.
Sec. 3 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department, agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
( printed page 13044)(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
March 14, 2025.