Since assuming office on January 20, 2025, President Donald Trump has prioritized tax policy, issuing a series of directives aimed at boosting economic growth and advancing the “America First” agenda.
On his first day in office, President Trump issued a memorandum declaring that the commitments made under the Organization for Economic Cooperation and Development’s (OECD’s) Pillar Two agreement have “no force or effect” in the U.S. unless formally adopted by Congress.
The memo directs the secretary of the Treasury, in consultation with the Office of the U.S. Trade Representative, to (i) examine whether foreign countries are taxing U.S. companies in violation of the tax treaties with the U.S. or international law, and (ii) provide a list of potential protective measures or actions the U.S. should take in response to any such violations. (See our tariffs analysis.)
This directive effectively removes the U.S. from the Pillar Two global tax agreement, which seeks to establish a global minimum corporate tax rate of 15% to address base erosion and profit-shifting.
On the same day, President Trump also issued an executive order, “Unleashing American Energy” (Executive Order 14154), directing all federal agencies to immediately halt the disbursement of funds allocated through the Inflation Reduction Act of 2022 and the Infrastructure Investment and Jobs Act of 2021, including funds designated for electric vehicle charging infrastructure. (See our energy and environment analysis.)
Agencies are required to review their policies and processes for issuing any disbursements related to these funds to ensure they align with legal requirements and the policy outlined in the order. On January 21, 2025, the Office of Management and Budget (OMB) issued a memo clarifying that the order applies exclusively to funds supporting programs, projects or activities that may conflict with the policies outlined in the order, such as promoting increased energy production on federal lands and ending support for electric vehicles.
Finally, President Trump has also issued a memo implementing a federal hiring freeze across executive departments and agencies, including the Internal Revenue Service (IRS).
See the full Executive Briefing publication
This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.