After a month of President Donald Trump’s time in office, federal officials are beginning to make good on efforts to shrink the federal government. Recent changes include canceled contracts at the U.S. EPA and new announcements regarding workforce reductions.
Groups representing the public sector have pushed back on some of these changes. Lawyers for Good Government reported receiving more than 230 requests for legal assistance from organizations struggling to access climate and clean energy grants. Lawsuits to ensure EPA program funds are disbursed remain ongoing.
Below are a selection of recent changes from the Trump administration with implications for the waste and recycling industry.
EPA changes
- The EPA has made a decision on whether the agency will abandon a 2009 ruling underpinning greenhouse gas rules, but Administrator Lee Zeldin declined to say publicly what that decision is, E&E News reported on Feb. 21. Trump set a Feb. 19 deadline for the decision in a Jan. 20 executive order. The so-called endangerment finding underpins much of the agency’s climate rules reducing carbon emissions, and abandoning it could undo many of those regulations.
- Zeldin announced the cancelation of nine contracts totaling roughly $60 million. The agency described them as “wasteful DEI and environmental justice initiatives,” but did not name which contracts were specifically affected. Climate Justice Alliance previously announced it would lay off staff after the EPA canceled its contract with the environmental justice group.
- EPA says it has cleared or deferred 75% of properties impacted by the recent wildfires in the Los Angeles area. The agency has set up multiple staging areas as it sifts through debris for hazardous materials, drawing pushback from neighboring residents. Local officials estimate that the fires created about 4.5 million tons of waste, KABC reported.
Business impacts
- A group of 133 local leaders across the country urged Congress not to repeal tax credits associated with the Inflation Reduction Act, Inside Climate News reported. The letter, released by the United States Conference of Mayors, cites research finding the IRA is expected to deliver a fourfold return on investment. Among the tax credits at issue are the Clean Fuel Production Credit and the Investment Tax Credit for Energy Property, which could support biogas projects.
- Federal Trade Commission Chairman Andrew Ferguson sent a memo to staff on Feb. 18 noting the 2023 joint merger guidelines released under his predecessor, Lina Khan, would remain in effect. Ferguson said “stability is good for the enforcement agencies.” The guidance provides a framework through which the regulatory agency views potential mergers and acquisitions, though it is “highly discretionary and malleable,” Colin Kass, partner and co-chair of Proskauer Rose's antitrust group, said in an emailed statement.
Personnel
- Zeldin scheduled a meeting with the Department of Government Efficiency on Feb. 5, according to a copy of his calendar reviewed by E&E News. The department, which has recommended slashing personnel and programs across the federal government, reportedly has access to EPA’s contracting system.
- Trump issued an executive order on Feb. 11 directing the Office of Management and Budget, in coordination with DOGE, to shrink the federal workforce via attrition and job cuts. Among other instructions, the order directs agencies to hire no more than one employee for every four employees that depart. It excludes certain government functions, including public safety, though the meaning of public safety is not defined.