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Trump Administration Freezes Regulations and Takes Other Actions Affecting Industry

Healthy dinner or lunch. Woman in t-shirt and jeans eating vegan superbowl or Buddha bowl with hummus, vegetable, salad, beans, couscous and avocado
Healthy dinner or lunch. Woman in t-shirt and jeans eating vegan superbowl or Buddha bowl with hummus, vegetable, salad, beans, couscous and avocado

Shortly after being sworn in on January 20, President Trump issued several actions, including issuing executive orders and instructions to agencies, that will affect the regulatory environment facing the food and agriculture industries.  “Day One” actions are an increasingly common feature of changes in presidential administrations.  Several of President Trump’s actions are consistent with policies from his first term in office, while others reflect recent campaign promises.  A number of President Trump’s actions affect the regulatory process directly, including a temporary freeze on rulemaking, and others will have indirect effects on the food industry.  We summarize key actions of interest below.1

Executive orders and other presidential actions are typically instructions to federal agencies ordering them to take or not take certain actions or announcing new administration policies that agencies are expected to follow.  Executive orders are not themselves laws or regulations and do not bind private parties, but they can significantly affect how the federal government administers programs or prioritizes resources.  Each recent change in administration has seen the incoming administration issue a number of executive orders to implement new policy priorities and reverse policies from the previous one.  As such, executive orders and other presidential actions such as memoranda to agency heads are important indications of the incoming administration’s priorities.   

Regulations Freeze

President Trump issued a “regulatory freeze” that in effect pauses all federal rulemaking to give the incoming administration an opportunity to review and potentially modify rulemaking efforts to align with its policy priorities.  This action is in line with similar executive orders issued at the beginning of earlier administrations.  

The executive order prohibits proposing or issuing “any rule in any manner . . . until a department or agency head appointed or designated by the President after noon on January 20, 2025 reviews and approves the rule.”2  The memorandum also prohibits sending a rule to the Office of the Federal Register (OFR) and orders the “immediate withdraw[al]” of any rules sent to OFR but not published in the Federal Register.

Further, the memorandum instructs agencies to “consider postponing . . . the effective date for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect” for a 60-day period commencing on the date of the memorandum. Agencies are also asked to “consider further delaying, or publishing for notice and comment, proposed rules further delaying such rules beyond the 60-day period.”  Importantly, under the order, agencies are required only to “consider” issuing extensions; the extensions are not automatic.  Organizations that want specific rulemakings to be extended should make sure the incoming administration is aware of their desires.   

The memorandum has a broad scope and captures both regulations and guidance documents.  It defines “rule” within the meaning of the Administrative Procedure Act at 5 U.S.C. § 551(4)3 and includes any “‘regulatory action,’ as defined in section 3(e) of Executive Order 12866 of September 30, 1993, as amended” as well as any “‘guidance document’ as defined in section 2(b) of Executive Order 13891 of October 9, 2019 (Promoting the Rule of Law Through Improved Agency Guidance Documents), when that order was in effect.”4  In short, the memorandum explains it applies to rules as defined by United States Code and also to “any substantive action by an agency” that is expected to result in a final rule or regulation, “including notices of inquiry, advance notices of proposed rulemaking, and notices of proposed rulemaking” as well as “any agency statement of general applicability and future effect that sets forth a policy on a statutory, regulatory, or technical issue or an interpretation of a statutory or regulatory issue.”  The memorandum includes exceptions for emergency situations involving, among other things, health and safety, and for regulations that are subject to a statutory or judicial deadline.  

Recent regulations that have not yet become effective, and that therefore are eligible for the 60-day delay, include the Food and Drug Administration’s (FDA) final rule on “healthy,” (effective date February 25, 2025),5 the Agricultural Marketing Service’s final rule on Poultry Grower Payment Systems and Capital Improvement Systems (effective date July 1, 2026),6 and the Agriculture Marketing Services final rule amending pricing provisions in the Federal Milk Marketing Orders (effective date June 1, 2025).7  Although final guidance documents do not have an official effective date, it is possible that several final guidance documents, including those covering the Animal Food Ingredient Consultation process, allergens, and lead in processed foods intended for babies and young children could be subject to further review, revision, or deferred implementation because they were issued so recently.8

Proposed regulations technically have no effective dates and therefore do not fall within the scope of the 60-day delay provision of the memorandum.  As with any proposed rule, however, the agencies could choose to withdraw them at any time, or issue a supplemental proposal or reproposed rule.  In addition, FDA or USDA could choose to extend the comment period for any recently proposed regulations, or choose to reopen the comment period at a later date.  

Similarly, recently issued draft guidance documents are outside the scope of the 60-day delay provision of the memorandum because they are drafts and have no effective dates.9  These documents could be good candidates for extensions of the public comment period if the affected industries so requested.

Cost-Cutting Measures

Several of the presidential actions are aimed at increasing government efficiency, reducing waste, and reducing economic burden on Americans.  They include formally establishing the Department of Government Efficiency (DOGE), pushing agencies to identify price relief measures for consumers, and reviving earlier deregulatory orders from President Trump’s first term in office.  

The Department of Government Efficiency (DOGE)

President Trump issued an executive order that establishes DOGE as an Executive Office of the President.10  The order repurposes the existing United States Digital Service by publicly renaming it the “United States DOGE Service” (USDS) and creating a USDS Administrator position that will report to the White House Chief of Staff.  The order further establishes a “U.S. DOGE Service Temporary Organization” headed by the USDS Administrator that is “dedicated to advancing the President’s 18-month DOGE agenda.”11  The temporary organization terminates on July 4, 2026.  The order also requires each agency to establish its own “DOGE Team,” consisting of at least four employees, that will advise the agency head on implementing the DOGE agenda.  Agency heads must ensure that DOGE Teams coordinate with USDS.

Price Relief for American Families

President Trump issued a memorandum that orders all heads of executive departments and agencies to “deliver emergency price relief, consistent with applicable law, to the American people and increase the prosperity of the American worker,” including actions to lower housing costs and eliminating climate policies that increase the costs of food and fuel.12  The memorandum requires the Assistant to the President for Economic Policy to report to the President every 30 days on the status of implementing the memorandum. 

Revival of Deregulatory Executive Orders from First Trump Administration

President Trump issued an executive order rescinding a number of executive orders from the Biden-Harris Administration,13 including Executive Order 13992.14  Executive Order 13992 in turn had rescinded an executive order from the first Trump administration (Executive Order 13771 focused on advancing President Trump’s deregulatory agenda by requiring agencies to offset regulatory efforts, such as by identifying at least two existing regulations to be repealed for each new rule proposed or finalized).15   Now, with the repeal of Executive Order 13992, the Trump Administration’s deregulatory executive order appears to have been revived, although it is not yet clear whether or how this approach will feature in the new administration’s regulatory agenda.

Presidential Actions on Other Issues of Importance to the Food Industry

  • Civil Service.  President Trump issued actions or executive orders requiring career federal employees responsible for policy development to “faithfully implement administration policies to the best of their ability” or else risk dismissal;16 implementing a hiring freeze for all federal civilian positions;17 requiring agencies take “all necessary steps to terminate remote work;”18 and making Career Senior Executive Service employees “accountable” to the President.19  The actions have the potential to reshape the federal workforce and could affect many of the policymakers and senior career officials with whom the food industry interacts.
  • Immigration.  President Trump issued actions or executive orders intended to limit immigration and entry options20 and prioritize resources for enforcement and deportation.21 These actions have the potential to also affect the availability of workers who may lawfully work in the United States.
  • Trade Policy.  President Trump’s “America First Trade Policy” memorandum advocates for a trade policy that “above all — benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.”  This approach could affect trade opportunities and supply chain logistics for the food industry, and it marks a rare instance of the January 20 orders specifically identifying segments of the food industry.   
  • Withdrawal from World Health Organization (WHO).  President Trump announced that the U.S. intends to withdraw from the WHO, instructing the Secretary of State to issue required notices and instructing the White House Office of Management and Budget to pause funding and recall personnel.22  Withdrawal from the WHO could call into question the U.S.’s ability to participate in or vote in international standard-setting bodies such as Codex Alimentarius.  

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We will continue to monitor the Trump administration’s actions and developing policy agenda.  Please contact us if you have any questions.

 

Authored by Brian Eyink and Chigozie Akah.

1 Although beyond the scope of this memorandum, some of the actions are likely to be challenged in court.  Indeed, several lawsuits have already been filed challenging various aspects of the Department of Government Efficiency (DOGE).

2 The White House, Regulatory Freeze Pending Review (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/regulatory-freeze-pending-review/.  At the time of publication, the executive orders had yet to be assigned identifying numbers.  

3 “‘[R]ule’ means the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency and includes the approval or prescription for the future of rates, wages, corporate or financial structures or reorganizations thereof, prices, facilities, appliances, services or allowances therefor or of valuations, costs, or accounting, or practices bearing on any of the foregoing).”

4 In this context, “‘Regulatory action’ means any substantive action by an agency (normally published in the Federal Register) that promulgates or is expected to lead to the promulgation of a final rule or regulation, including notices of inquiry, advance notices of proposed rulemaking, and notices of proposed rulemaking.” 58 Fed. Reg. 51735 (Oct. 4, 1993) (emphasis in original). “‘Guidance document’ means an agency statement of general applicability, intended to have future effect on the behavior of regulated parties, that sets forth a policy on a statutory, regulatory, or technical issue, or an interpretation of a statute or regulation.” 84 Fed. Reg. 55235 (Oct. 15, 2019).

5 HL Update, FDA Issues Final “Healthy” Rule (Jan. 8, 2025), available at https://www.hoganlovells.com/en/publications/fda-issues-final-%E2%80%9Chealthy%E2%80%9D-rule. See also, 89 Fed. Reg. 106064 (Dec. 27, 2024). 

6 90 Fed. Reg. 5146 (Jan. 16, 2025). 

7 90 Fed. Reg. 6600 (Jan. 17, 2025).

8 See, HL Update, FDA issues Guidance on Interim Animal Food Ingredient Consultation (AFIC) Process (Jan. 8, 2025), available at https://www.hoganlovells.com/en/publications/fda-issues-guidance-on-interim-animal-food-ingredient-consultation-afic-process; FDA, Guidance for Industry: Questions and Answers Regarding Food Allergen Labeling (Edition 5) (Jan. 2025), available at https://www.fda.gov/regulatory-information/search-fda-guidance-documents/guidance-industry-questions-and-answers-regarding-food-allergen-labeling-edition-5; FDA, Guidance for FDA Staff and Interested Parties: Evaluating the Public Health Importance of Food Allergens Other Than the Major Food Allergens Listed in the Federal Food, Drug, and Cosmetic Act (Jan. 2025), available at https://www.fda.gov/regulatory-information/search-fda-guidance-documents/guidance-fda-staff-and-interested-parties-evaluating-public-health-importance-food-allergens-other; FDA, Guidance for Industry: Action Levels for Lead in Processed Food Intended for Babies and Young Children (Jan. 2025), available at https://www.fda.gov/regulatory-information/search-fda-guidance-documents/guidance-industry-action-levels-lead-processed-food-intended-babies-and-young-children.

9 Recently published draft guidance documents include FDA’s draft guidance on Management of Environmental Pathogen Hazards for Low-Moisture Ready-to-Eat Foods and Labeling of Plant-Based Alternatives to Animal-Derived Foods.  See also, HL Update, FDA Draft Guidance Addresses Management of Environmental Pathogen Hazards for Low-Moisture Ready-to-Eat Foods (Jan. 10, 2025), available at https://www.hoganlovells.com/en/publications/fda-draft-guidance-addresses-management-of-environmental-pathogen-hazards; HL Update, FDA Issues Draft Guidance on Labeling of Plant-Based Alternatives to Animal-Derived Foods (Jan. 8, 2025), available at https://www.hoganlovells.com/en/publications/fda-issues-draft-guidance-on-labeling-of-plantbased-alternatives-to-animalderived-foods.

10 The White House, Executive Order Establishing and Implementing the President’s ‘Department of Government Efficiency’ (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/establishing-and-implementing-the-presidents-department-of-government-efficiency/.

11 While the Executive Order does not enumerate the specific components of the “DOGE agenda,” the Order does note an overall goal of “modernizing Federal technology and software to maximize governmental efficiency and productivity.”

12 The White House, Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/delivering-emergency-price-relief-for-american-families-and-defeating-the-cost-of-living-crisis/.

13 The White House, Initial Rescissions of Harmful Executive Orders and Actions (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/initial-rescissions-of-harmful-executive-orders-and-actions/.

14 Revocation of Certain Executive Orders Concerning Federal Regulation, 86 Fed. Reg. 7049 (Jan. 25, 2021). 

15 HL Update,  Trump Administration Issues Executive Order on Reducing Regulation and Controlling Regulatory Costs (Feb. 2, 2017), available at https://www.hoganlovells.com/en/publications/trump-administration-issues-executive-order-on-reducing-regulation-and-controlling-regulatory-costs.  See also, 82 Fed. Reg. 13771 (Feb. 3, 2017).

16 The White House, Restoring Accountability to Policy-Influencing Positions within the Federal Workforce (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/restoring-accountability-to-policy-influencing-positions-within-the-federal-workforce/.

17 The White House, Hiring Freeze (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/hiring-freeze/.

18 The White House, Return to In-Person Work (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/return-to-in-person-work/.

19 The White House, Restoring Accountability for Career Senior Executives (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/restoring-accountability-for-career-senior-executives/.

20 The White House, Protecting the United States from Foreign Terrorists and Other National Security and Public Safety Threats (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/protecting-the-united-states-from-foreign-terrorists-and-othernational-security-and-public-safety-threats/

21 The White House, Protecting the American People Against Invasion (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/protecting-the-american-people-against-invasion/; The White House, Securing Our Borders (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/securing-our-borders/.

22 The White House, Withdrawing the United States from the World Health Organization (Jan. 20, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/01/withdrawing-the-united-states-from-the-worldhealth-organization/.

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