The Trump administration has initiated a comprehensive overhaul of federal agencies, focusing on deregulation and workforce reduction. The Department of Government Efficiency (DOGE), established in January 2025, spearheads these efforts, aiming to modernize operations and enhance productivity across the federal government.
**Department of Energy’s Regulatory Revisions**
On May 12, 2025, the Department of Energy proposed over 40 regulatory changes, projected to save taxpayers $11 billion. These reforms include eliminating efficiency standards for appliances such as faucets, clothes washers, and microwave ovens. Additionally, the department plans to rescind policies protecting against discrimination based on age, gender, and disability, and to remove support for minority-owned businesses. These changes align with the administration’s strategy to reduce regulatory burdens and promote energy dominance.
**Federal Trade Commission’s Workforce Reduction**
FTC Chairman Andrew Ferguson announced plans to reduce the agency’s workforce by approximately 10%, bringing its headcount to around 1,100 employees—the lowest level in a decade. Despite these cuts, Ferguson assured Congress that the FTC would continue its enforcement activities in antitrust and consumer protection. The agency is currently engaged in significant cases against companies such as Meta, Amazon, and Deere & Co., and is targeting pharmacy benefit managers over insulin pricing. To manage budget constraints, the FTC is offering buyouts and has reduced contract spending by over $6 million with the help of two efficiency specialists. Ferguson emphasized a shift in priorities away from rulemaking and highlighted ongoing efforts to cut expenses, including reducing reliance on expert trial witnesses and external data storage.
**Federal Emergency Management Agency’s Operational Challenges**
An internal FEMA document reveals that the agency’s preparations for the 2025 hurricane season have been significantly hindered by staff losses and low morale. FEMA has lost about one-third of its workforce—around 2,000 full-time employees—due to terminations and voluntary departures, influenced by efforts to downsize the federal government. These losses have led to reduced training for local emergency managers and disrupted planning and coordination with the states. DHS Secretary Kristi Noem and President Trump have proposed shifting more disaster response responsibilities to state governments, or possibly eliminating FEMA altogether. Acting FEMA Administrator David Richardson acknowledged preparation challenges and announced plans to narrow FEMA’s operations in accordance with legal mandates. He outlined a future increase in the state’s cost burden for disaster response, shifting from the current 75/25 federal-state split to 50/50. Richardson emphasized the need to alert governors to the impending changes and committed to assisting states financially when needed, while signaling a tougher approach to implementing reforms within the agency.
**Securities and Exchange Commission’s Structural Changes**
The Securities and Exchange Commission (SEC) plans to eliminate regional director positions across the country as part of a broader cost-cutting effort. This decision comes as the agency prepares to submit restructuring recommendations to the White House, which has directed federal agencies to reduce staffing and expenditures through DOGE. The agency, which oversees U.S. capital markets representing more than $100 trillion, relies on regional offices to oversee examinations and enforcement actions involving public companies, brokers, and investment firms. The planned reductions are part of a broader effort to scale back the federal workforce, a priority for President Trump and special adviser Elon Musk.
**Environmental Protection Agency’s Deregulatory Actions**
On March 12, 2025, EPA Administrator Lee Zeldin announced a slate of 31 actions to scale back federal environmental regulations. This initiative, described as the greatest deregulation action in U.S. history, continues the administration’s efforts to downsize the role of the federal government in energy and environmental spaces. The actions involve reconsidering existing rules rather than immediately imposing a new framework, as most changes will need to pass through the full rulemaking process, including public comments and inevitable litigation.
**Department of Agriculture’s Workforce Reductions**
Unions representing staff within the U.S. Department of Agriculture (USDA) have alerted Congress to significant risks to food safety and the agency’s effectiveness due to political interference and deep budget cuts. More than 15,000 USDA employees have left, severely diminishing technical expertise needed to combat critical issues like the ongoing bird flu outbreak. The proposed $4.5 billion in USDA cuts—affecting conservation and research—have exacerbated the challenges. The USDA’s Agricultural Research Service (ARS) has lost a substantial number of its food safety scientists, limiting the agency’s capacity to prevent foodborne illnesses and detect contaminants. Staff have also been prohibited from attending conferences and are unclear about communication restrictions regarding agency impacts. This undermines key USDA missions, such as climate adaptation and nutrition fraud prevention.
**Judicial Response to Workforce Reductions**
A federal judge in San Francisco temporarily blocked much of the administration’s large-scale downsizing of federal agencies. Judge Susan Illston issued the emergency order in response to a lawsuit from labor unions and cities challenging efforts to reduce the federal workforce. The ruling halts the implementation of the executive order and a memo from DOGE and the Office of Personnel Management, which aimed to centralize and reduce federal staff in several departments. Illston emphasized that the president must work with Congress for such structural reforms. The restraining order, effective for 14 days, affects various departments including Health and Human Services, Agriculture, Energy, Labor, and the Social Security Administration, among others. Tens of thousands of federal workers have already left or been dismissed due to the downsizing plans. Plaintiffs argue these actions have caused significant disruptions in public services. The administration defended the efforts as guidance rather than mandates, while opponents contend the administration bypassed legal procedures.
**Conclusion**
The administration’s efforts to streamline federal agencies through deregulation and workforce reduction are progressing, with various departments implementing significant changes. While these actions aim to enhance efficiency and reduce government size, they have also led to operational challenges and legal disputes. The administration continues to monitor and adjust its strategies to achieve its objectives within the legal framework.
—
Greg Sanders covers federal oversight, administrative restructuring, and the mechanics of government reform. He holds a degree in public policy from the University of Texas and began his career auditing municipal budgets before moving to federal-level investigative reporting. His work focuses on how agencies evolve, consolidate, and expand under the banner of efficiency.