Trump’s Executive Order Cuts Funding for Seven Federal Agencies

The directive indicates that these agencies were chosen as President Trump classified them as “unnecessary.”

President Donald Trump is intensifying federal budget cuts, now focusing on an international media organization, public libraries, and initiatives to reduce homelessness.

An executive order signed by the president on March 14 reduces funding for seven federal entities: the Federal Mediation and Conciliation Service, U.S. Agency for Global Media, Woodrow Wilson International Center for Scholars within the Smithsonian Institution, Institute of Museum and Library Services, U.S. Interagency Council on Homelessness, Community Development Financial Institutions Fund, and the Minority Business Development Agency.

In reaction to the order, the American Library Association released a statement urging the president to rethink his “short-sighted decision.”

“By abolishing the only federal agency dedicated to financing library services, the Trump administration’s executive order is crippling the most cherished and trusted American institutions along with their staff and services,” the statement asserts, highlighting initiatives such as summer reading programs for children, braille books for those with visual impairments, and small business support for entrepreneurs.

Here’s a breakdown of each agency affected.

Why is Trump cutting funding for these agencies?

As specified in the executive order, Trump has identified these seven agencies as “unnecessary.”

A White House Fact Sheet indicates that the Department of Government Efficiency, led by billionaire Elon Musk, pinpointed the agencies considered expendable.

“Eliminating these governmental entities will conserve taxpayer dollars, diminish unnecessary spending, and refine government priorities,” the fact sheet declares.

The Trump administration did not promptly respond to a request for comments regarding the order when contacted by USA TODAY on Saturday.

What is the Federal Mediation and Conciliation Service?

The Federal Mediation and Conciliation Service offers conflict resolution services to enhance labor-management relations. This independent federal entity provides training, mediation, facilitation, dispute systems design, and other resolution services to federal agencies, according to its website.

For instance, if an agency and a union have negotiated on a particular matter and reached a consensus, they may seek the assistance of the Federal Mediation and Conciliation Service, as stated by the U.S. Federal Labor Relations Authority.

The Mediation and Conciliation Service was established in 1947.

What is the US Agency for Global Media?

The U.S. Agency for Global Media manages all non-military international broadcasting for the U.S. It operates six networks: Voice of America, Radio Free Europe/Radio Liberty, the Office of Cuba Broadcasting, Radio Free Asia, the Middle East Broadcasting Networks, and Open Technology Fund.

Through these six networks, the agency delivers news in 64 languages to over 427 million individuals, according to its website.

“President Trump is fulfilling his commitment to make our government more effective. American taxpayers should not subsidize anti-American propaganda in the guise of journalism,” White House Press Secretary Karoline Leavitt stated to USA TODAY regarding the cuts.

The Agency for Global Media was created in 1994 by President Bill Clinton and was originally called the Broadcasting Board of Governors, as noted by the agency’s website. The agency’s name was changed in 2018.

What is the Woodrow Wilson International Center for Scholars in the Smithsonian Institution?

The Woodrow Wilson International Center for Scholars in the Smithsonian Institution, often referred to as the Wilson Center, conducts research and offers nonpartisan advice on global affairs to policymakers around the world.

The center runs over 20 programs aimed at bridging the gap between the U.S. and other nations and specializes in various topics to tackle global challenges. The Wilson Center also hosts numerous events throughout the year to educate the public on global history and foster community discussions.

The Wilson Center was established in 1968 to honor President Woodrow Wilson.

What is the Institute of Museum and Library Services?

The Institute of Museum and Library Services supports museums, libraries, archives, and similar organizations across the United States through grants, research, and policy development.

In the 2024 fiscal year, the institute’s budget exceeded $294 million, according to its budget for fiscal year 2023-2025. In 2024, it awarded $266.7 million to museums, libraries, and archives nationwide.

The Institute of Museum and Library Services was founded in 1996.

What is the US Interagency Council on Homelessness?

The U.S. Interagency Council on Homelessness coordinates the federal response to homelessness, striving to foster partnerships with government agencies and the private sector, as per the agency’s website. The council collaborates with 19 federal organizations to end homelessness, including the Departments of Education, Defense, Transportation, and Labor.

The U.S. Interagency Council on Homelessness was created in 1987 by the Stewart B. McKinney Homeless Assistance Act.

What is the Community Development Financial Institutions Fund?

Part of the U.S. Department of Treasury, the Community Development Financial Institutions Fund promotes economic revitalization and community development in underserved areas across the country.

For instance, the Fund’s Community Development Financial Institutions Program furnishes loans, investments, financial services, and technical support to institutions in these underserved communities.

The Community Development Financial Institutions Fund was established in 1994 under the Riegle Community Development and Regulatory Improvement Act.

What is the Minority Business Development Agency?

The Minority Business Development Agency is dedicated to fostering growth among Minority Business Enterprises, or MBEs, by offering technical assistance programs.

An MBE is defined as a for-profit business that is at least 51% owned or managed by members of qualifying minority groups, including individuals who are U.S. residents and are Asian-Indian, Asian-Pacific, Black, Hispanic, or Native American, according to the National Minority Supplier Development Council.

During the 2023 fiscal year, the Minority Business Development Agency facilitated $1.5 billion in capital for MBEs and aided in the creation of 19,000 jobs, as stated on the agency’s website.

The Minority Business Development Agency was established in 1969 when President Richard Nixon formed the Office of Minority Business Enterprise.

Greta Cross is a national trending reporter at USA TODAY. Follow her on X and Instagram @gretalcross. Have a story idea? Email her at [email protected].