First Circuit Raises Doubts on Trump’s Federal Agency Cuts

3 min readSources: Courthouse News

The First Circuit questioned the legality of Trump’s executive order cutting federal agencies.

Why it matters: This ruling challenges the executive branch’s ability to dismantle federal agencies without Congress, affecting legal boundaries of administrative authority and compliance.

  • In March 2025, Trump issued an executive order to reduce operations of agencies like the Minority Business Development Agency.
  • Several Democratic-led states sued, and a district court invalidated the order as exceeding presidential authority.
  • On September 16, 2026, the First Circuit heard arguments and expressed doubts about the president’s power to cut agencies without congressional approval.
  • Judges noted concerns that the executive order conflicts with legislative intent and statutory law.
  • Each key point references facts reported by the <a href="https://www.washingtonexaminer.com/news/justice/4729490/first-circuit-trump-government-agencies-cutting/" target="_blank" rel="noopener">Washington Examiner</a> and related court filings.

In March 2025, President Donald Trump signed an executive order aiming to sharply reduce several federal agencies, including the Minority Business Development Agency, Federal Mediation and Conciliation Service, and U.S. Interagency Council on Homelessness. The order sought to curtail these agencies’ operations to minimum statutory functions, labeling them as inefficient.

Democratic-led states challenged the order, arguing it exceeded the president’s authority by unilaterally dismantling agencies created by Congress. A federal district court agreed, ruling the order unlawful because it conflicted with existing laws and congressional intent.

On September 16, 2026, a three-judge panel at the U.S. Court of Appeals for the First Circuit heard oral arguments. The panel examined whether the executive branch can override Congress to disband or reduce agency functions without new legislative approval.

During the hearing, the judges expressed clear skepticism. One remarked, "The administration’s actions raise substantial separation-of-powers concerns," highlighting the difficulty in justifying the president’s authority to dismantle congressionally established bodies without explicit legislative guidance. Another judge emphasized worry that the executive order disregards the legal framework and goals Congress set when forming these agencies.

This case highlights the constitutional limits on executive power in administrative governance. It poses significant questions about how far the president can go to reshape the federal bureaucracy absent clear congressional directives.

The First Circuit’s forthcoming decision will be pivotal in defining the balance between the executive and legislative branches over agency control, with implications for legal professionals advising federal agencies or involved in regulatory compliance.

For additional information, see reporting by the Washington Examiner and the official First Circuit court documents.

By the numbers:

  • 2025-03 — Trump signed the executive order reducing agencies
  • 2026-09-16 — First Circuit held oral arguments on the case

What's next: The First Circuit is expected to issue a ruling soon, which could clarify executive authority over federal agencies.