Regulatory Alert: President Trump Takes Series of Executive Actions on Day One
President Trump Takes Series of Executive Actions on Day One
January 21, 2025
Yesterday evening, President Trump took a series of executive actions on his first day in office that collectively seek to improve governmental efficiency, reduce the size of the federal workforce, return federal employees to in-person work, streamline environmental reviews and permitting, and roll back many of President Biden’s initiatives aimed at addressing climate change and implementing diversity, equity, and inclusion (DEI) initiatives, among many others. As of early Monday, Trump had signed 26 executive orders, 12 presidential memoranda, and 5 proclamations. This is significantly more than President Biden in 2021 (9 orders) and Trump in 2017 (1 order).
Although the actions taken yesterday raise many questions, they provide the first insights into the direction the Trump administration will be taking in the coming weeks and months. Based on our initial review, we have prepared the analysis below to share our takeaways and how they may impact airport initiatives and priorities. We will keep members apprised of other developments as the new administration takes office.
Establishment of Department of Government Efficiency: As anticipated, President Trump issued an order establishing the “United States Department of Government Efficiency (DOGE) Service” (USDS) as a unit within the Executive Office of the President. (More specifically, the order renamed an existing unit called the U.S. Digital Service that was created in 2014 to modernize technology used by the federal government.) According to the order, the USDS will be led by a USDS Administrator, presumably Elon Musk, and create a temporary organization within USDS that will advance President Trump’s “18-month DOGE agenda.” Each federal agency, including the U.S. Department of Transportation (DOT) and Federal Aviation Administration (FAA), must establish a “DOGE Team” to implement the DOGE agenda. While the USDS will be responsible for improving the federal government’s technology and software, no other details are provided in the order on the nature of the DOGE agenda.
Hiring Freeze and Reduction of Federal Workforce: President Trump signed a memorandum aimed at reducing the size of the federal workforce through two directives. First, the memorandum imposes a “freeze” on hiring of federal employees, regardless of the source of their operations and programmatic funding. However, there are exceptions for “military personnel of the armed forces or to positions related to immigration enforcement, national security, or public safety.” Second, within 90 days, the Office of Management and Budget (OMB) must consult with the USDS Administrator—again, presumably Elon Musk—and submit a plan to reduce the size of the federal government’s workforce “through efficiency improvements and attrition.” The hiring freeze only remains in place until OMB develops the required plan.
Return to In-Person Work: Each federal agency, including DOT and FAA, is required to take all necessary steps, as soon as practicable, to terminate remote work arrangements and require employees to return to work in-person on a full-time basis. However, each agency may make exemptions as necessary.
Regulatory Freeze: Each federal agency is prohibited from promulgating or issuing any rule or proposed rule, except in emergency situations or if the incoming head of the agency reviews and approves it. In addition, agencies must “consider” postponing by 60 days any rule or proposed rule that has already been published in the Federal Register. This type of “regulatory freeze” is common for incoming administrations and allows the newly appointed officials to review and change, if necessary, recently published work of the prior administration.
Return of 2-for-1 Rulemaking: In 2021, President Biden revoked Trump’s 2017 executive order and policy that required each federal agency to identify at least two existing regulations to be repealed if such agency proposes a new regulation. This was commonly known as the “2-for-1 order.” Yesterday, President Trump revoked Biden’s order, which would presumably reinstate the 2-for-1 order and once again apply it to any new agency rulemaking initiatives.
National Environmental Policy Act (NEPA) Reviews: President Trump issued an order directing his administration to take several notable actions relating to NEPA reviews:
- Background: Since 1978, the Council on Environmental Quality (CEQ) has promulgated regulations that govern how each federal agency, including FAA and DOT, is required to conduct a NEPA review. However, in November 2024, the U.S. Court of Appeals for the D.C. Circuit issued a decision in Marin Audubon Society v. FAA, finding that CEQ’s regulations are invalid because CEQ does not have statutory authority to promulgate regulations that are binding on other agencies. This has caused significant confusion as agencies determine how to ensure NEPA compliance.
- Revocation of CEQ Rulemaking Authority: The order issued yesterday officially revokes the authority of the CEQ to promulgate and issue regulations to ensure agencies properly comply with NEPA, effectively affirming the Audubon Society decision. In addition, within 30 days, the Chair of the CEQ must (a) provide guidance to each agency on how to implement NEPA and (b) propose rescinding CEQ’s NEPA regulations entirely. The directive sends a signal that the Trump administration will allow each agency to develop their own implementing regulations and guidance to ensure compliance with NEPA rather than requiring each agency to follow CEQ’s NEPA regulations.
- Efficiency in NEPA Reviews: The order further directs DOT, FAA, and the U.S. Environmental Protection Agency (EPA), among other agencies, to undertake “all available efforts to eliminate all delays within their respective permitting processes, including through, but not limited to, the use of general permitting and permit by rule.” In addition, each agency must “prioritize efficiency and certainty over any other objectives” that could add delays and ambiguity to the permitting process.
Bipartisan Infrastructure Law (BIL) Funding: Each federal agency is required to “pause the disbursement of funds” appropriated through the Infrastructure Investment and Jobs Act (IIJA), popularly known as BIL, and Inflation Reduction Act (IRA) to ensure each program is consistent with the new administration’s new energy policy. The order is broadly written to include IIJA-related airport programs; however, the primary focus appears to be directed at funding to support electric vehicle infrastructure. While funding availability is unlikely to be affected, airports could expect the FAA to adjust the criteria used to evaluate project applications that will be submitted under the Airport Terminal Program (ATP) and FAA Contract Tower Competitive Grant Program later this year.
DEI Initiatives: The OMB is required “coordinate the termination” of any DEI and DEI and Accessibility (DEIA) mandates, policies, programs, preferences, and activities in the federal government. In addition, each federal agency is required to “terminate, to the maximum extent allowed by law, all DEI, DEIA, and ‘environmental justice’ offices and positions” and “all DEI or DEIA performance requirements for employees, contractors, or grantees.” It is unclear what, if any, impact the order may have on Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) programs, which Congress has codified in statute and cannot be eliminated through executive order.
Revocation of President Biden’s Executive Actions: President Trump issued an order revoking 78 presidential actions of President Biden (67 executive orders and 11 memoranda). As expected, Trump revoked many of the actions that were focused on addressing climate change, promoting environmental justice, and implementing DEI initiatives. A complete list of actions revoked can be found here.
