Key Agency Review Periods, Rulemaking Status & Activities Over the Past Month, Many
IAM has been closely following a number of Executive Orders and related actions issued by the Executive Branch since President Trump was inaugurated in late January.
Presidential Review Requirement. Independent agencies must submit proposed regulations for review by the White House before adoption.
Independent Agencies and Commission Subject to New Requirements & Supervision Under Executive Order Last week, President Trump issued an Executive Order seeking changes in how U.S. independent agencies and Commissions are governed and their actions overseen.
While the President appoints the commissioners to these agencies, which include the Federal Maritime Commissions (FMC), they have largely operated with some degree of autonomy from the Executive Branch. The FMC oversees and implements regulations connected to the Ocean Shipping and Reform Act (application of detention and demurrage duties), OTI licensing, carrier and shipping alliances, among other maritime regulations.
The order requires independent agencies and commissions submit proposed and final “significant regulatory actions” to the Office of Information and Regulatory Affairs (OIRA), a division of the US Office of Management and Budget (OMB) for review before publishing them in the Federal Register as part of the finalization process. While this is standard procedure for larger cabinet-level federal agencies, this level of scrutiny has not yet been applied to independent commissions.
Changes to Diversity, Equity and Inclusion (DEI) Programs & PoliciesOne of the first Executive Orders signed in January was related to DEI policies, eliminating them from federal agency programs, federal grant and procurement spending, and ordering agencies to independently DEI policies at larger, publicly traded companies. The Executive Order covers all private businesses utilizing any US federal contract or grant money and is not acquisition specific. For example, if a household goods move or relocation is being conducted for any of the federal agencies (State, GSA, DoD, etc.), then it would apply. IAM has heard anecdotally of non-US companies being asked to verify, via signed declarations, that their company does not have any DEI policies in place.
These certifications were temporarily paused via a February 21st court decision, but that may change in the future. Should the requirement again be put into place, federal contractors and the agencies utilizing their services would have until April 21st to ensure the declaration process is in place and being used. IAM continues to follow this legal case and connected requirements closely.
U.S. Personnel Relocations and Moves – Looking AheadIn addition to agency connected policy directives, the President has issued several Executive Orders seeking a broader reduction in the federal government workforce, many of which may result in additional relocations across domestic and international channels. The U.S. Office of Personnel Management (OPM) continues to issue memos outlining transition plans and other employee related directives on their website.
The Dept. of Defense (DoD) announced plans last week to terminate employment for over 5,000 probationary (relatively new employees). DoD is also looking to reduce the size of its civilian workforce worldwide by 55,000 people. An outline for how that, and a broader 8 percent budget cut at the agency have not yet been issued. Other federal agencies have released segments of their probationary staff, and are looking at internal agency mission alignment for current employees.
As with many of the other issues highlighted above, these are evolving scenarios, with agency actions often adapting to new guidance or court directives.
Dept. of Government Efficiency (DOGE) ActivityWhile much of the focus of the DOGE has been on workforce reduction and employee compliance requests, the Dept. has also begun to eliminate and/or cancel early many privately contracted consulting services provided across the US agencies. Connected to this, U.S. Secretary of Defense Pete Hegseth directed a memo to branches across DoD asking them for a review of non-essential consulting services, with explanatory deadlines/justifications due in March and April.
Current U.S. Regulatory EffortsU.S. agencies have been relatively quiet issuing new regulations, as many pending actions remain held for further review – including a long planned overhaul of the U.S. motor carrier registration system at the Federal Motor Carrier Safety Administration (FMCSA).
That said, the Office of the U.S. Trade Representative (USTR) did publish a rulemaking on February 21st that would add fees to Chinese owned ocean carrier lines entering U.S. ports if finalized. The fees may be as high as $1 mil on Chinese-built ships entering U.S. ports. This fee has the potential, and is not restricted from being passed onto shippers and others moving cargo on the impacted vessels. As part of that rulemaking, a phased-in requirement was also included, seeking to gradually increase the percentage of U.S. goods that must be transported on U.S. flagged and built vessels, starting at 1% and rising to 15% over seven years. The written comment period for this proposal is now open, with an in-person hearing to be held later in March at USTR Headquarters in Washington, DC.
It is important to note that many of the actions spotlighted above are under legal or similar challenges and are subject to change – IAM will continue to follow developments as they arise.
If you have questions in the meantime, please reach out to Bryan Vickers, with IAM’s Legislative and Regulatory team, bvickers@pacellp.com, 703-403-2882.