Each week, Liebert Cassidy Whitmore provides a summary of newly issued Executive Orders and other significant Presidential and federal actions that have a foreseeable impact on governance, compliance, and operational policies for California employers. The summaries below outline the key provisions of each action, along with our brief analysis of their potential implications for municipal agencies, school districts, nonprofits, and private schools.
Executive Order: Implementing the President’s ‘Department of Government Efficiency’ Cost Efficiency Initiative (February 26, 2025)
On February 26, 2025, President Donald Trump signed an Executive Order titled “Implementing the President’s ‘Department of Government Efficiency’ Cost Efficiency Initiative.”
Of relevance to California employers, the Order directs the head of every federal agency to review existing discretionary federal contracts and grants, and, where appropriate, terminate and modify such contracts and grants to reduce federal spending, promote efficiency, and advance the policies of the Trump administration.
Specifically, the Order directs agency heads to “prioritize the review of funds disbursed under covered contracts and grants to educational institutions and foreign entities for waste, fraud, and abuse.”
This Action may have an impact on California employers, including private or public educational institutions that receive federal funds or have contracts with the federal government, but it does not impose any obligations on such entities. LCW will continue to monitor this Order to track activity that impacts California employers.