Doing what any astute businessman would do, President Trump is modernizing and streamlining how the federal government buys goods and services. Signing an executive order titled “Restoring Common Sense to Federal Procurement,” Trump mandated a comprehensive overhaul of the Federal Acquisition Regulation (FAR) rulebook, a 2,000-page tome long criticized as outdated, burdensome, and counterproductive.
“The Federal Government is the largest buyer in the world, but doing business with it has become unnecessarily complex and costly,” the President stated. “We are restoring common sense to procurement and lifting unnecessary burdens that have held back innovation, growth, and responsiveness.”
The FAR, first implemented over forty years ago, was designed to ensure consistency and transparency in federal acquisitions. However, recent and historical studies—including the 2024 Senate report “Restoring Freedom’s Forge”—have found that the system has become an impediment to efficiency, particularly for commercial and defense suppliers.
Under the new executive order, agencies must strip the FAR of any provision not mandated by statute or deemed essential to procurement integrity or national security. The order aligns with the broader deregulatory aims outlined in Executive Order 14192, “Unleashing Prosperity Through Deregulation.”
The administration says the overhaul will foster competition, reduce taxpayer costs, and better support the national and defense industrial bases.
FAR critics have long pointed to its complexity as a deterrent to small and mid-sized businesses attempting to work with the government. “The system has favored entrenched players who can navigate red tape while stifling innovation and driving up prices,” the White House said. “This is about making the system work for everyone, not just the few who can afford compliance consultants.”
While the order preserves the authority of agencies and maintains existing legal protections, it sets in motion a historic restructuring of federal procurement — one with far-reaching implications for contractors, government operations, and taxpayer spending.