Federal Agencies Continue Program Reviews Following Executive Orders

In the past month, President Donald Trump has issued several executive actions with significant implications for the engineering sector. The directives aim to reshape energy policy, environmental regulations, and technological development in the United States. In addition, the Trump Administration has continued to assert authority to cancel or re-negotiate a wide-range of federal programs and contracts, sparking legal challenges and wide-reaching uncertainty across the federal contracting community.   

In its first few weeks, the Administration’s Department of Government Efficiency (DOGE) effort has claimed to have implemented billions in federal spending cuts, primarily targeting large-scale federal staff reductions, as well as Diversity, Equity, and Inclusion (DEI) and foreign assistance related programs. The department has also terminated a wide range of federal contracts and closed underutilized office spaces, many of which may draw legal and Congressional pushback. Future DOGE efforts will turn to larger federal programs, particularly in healthcare and defense.  

These actions have sparked significant debate in Congress and legal challenges from states and other affected entities. Further legal challenges are anticipated as efforts to restructure federal operations and re-align Congressionally authorized activities towards the administration’s priorities continue. The executive actions are also poised to impact a wide variety of engineering disciplines. Key Executive Actions from the first 30 days of the new Administration include:  

• Executive Order on Unleashing American Energy: This order places a priority on the development of fossil fuels and nuclear energy, which may lead to increased projects and funding opportunities in these sectors. The Department of Energy’s R&D efforts will also prioritize “affordable, reliable, and secure energy technologies”, including fossil fuels, advanced nuclear, geothermal, and hydropower, as well as critical emerging technologies such as nuclear fusion, high-performance computing, quantum computing, and AI.  

• Withdrawal from Climate Agreements and U.S. Regulatory Freeze: The withdrawal from international climate agreements and the administration’s deregulation efforts could alter federal contract requirements, environmental and project standards. The Administration’s initial ‘Regulatory Freeze Pending Review’, remains in effect through at least March 20, 2025.   

• Executive Orders on DEI, Gender, and Sex: These orders rescind several Biden administration policies related to diversity, equity, and inclusion and direct federal agencies to end all DEI programs and requirements.  

As these policies unfold, subscribe to ASME Policy Impact to keep track of the evolving regulatory and policy landscape.