President Donald Trump has signed an executive order to overhaul the Federal Acquisition Regulation, launching a broad effort to streamline federal procurement and eliminate rules not required by law or essential to sound procurement.
Issued April 15, the “Restoring Common Sense to Federal Procurement” EO cites the federal government’s status as the world’s largest buyer, while acknowledging that working with it remains inefficient and costly because of overly complex acquisition rules. The EO’s goal is to simplify the FAR, remove unnecessary regulations and modernize the procurement process.
The directive references long-standing criticism of the FAR, including a 2024 Senate report and a 2019 advisory panel review. Both found the regulation an obstacle to doing business with the federal government and noted its effects on purchases ranging from commercial goods to major defense systems.
“The FAR has become an onerous bureaucracy,” according to the EO. “Its inadequacies are self-inflicted and can be remedied through comprehensive reform.”
The FAR governs nearly $1 trillion in yearly federal procurement. Under the EO, the administration aims to build a more agile, efficient system while expanding the national and defense industrial base.
Within 180 days, the administrator of the Office of Federal Procurement Policy must propose changes to the FAR to align with the EO’s objectives. Agencies must also designate senior procurement officials to review and revise their FAR supplements.
The EO includes a regulatory sunset provision: any FAR rule not required by law must expire after 4 years unless renewed by the FAR Council.
The April 15 EO builds on Trump’s previous one, “Unleashing Prosperity Through Deregulation,” which established the administration’s broader effort to slash regulatory burdens and improve fiscal discipline.
A governmentwide implementation memo from the Office of Management and Budget is expected within 20 days.