With November 5 behind us, all eyes now turn to President-elect Donald J. Trump's transition team, which is the entity charged with setting up the personnel and policy for the new administration. Because of their importance in dictating the presidential agenda, a rudimentary understanding of presidential transition teams is necessary for business leaders to defend and advocate for their interests and industries.
With approximately seventy-five days between Election Day and Inauguration Day, there is a narrow window to prepare the president-elect to assume the powers of the presidency. Oftentimes composed of industry and political professionals, the transition team is tasked with recruiting and vetting individuals for presidential appointments, developing the incoming administration's policy agenda, and creating a plan for implementing that policy agenda through various federal agencies. President-elect Trump's transition team is co-chaired by Linda McMahon, former CEO of World Wrestling Entertainment, and Howard Lutnick, CEO of the financial services firm Cantor Fitzgerald. Two of the president-elect's sons, Eric Trump and Donald Trump Jr., along with Republican vice-president-elect J.D. Vance serve as honorary co-chairs.
With the results of the race solidified, professionals should understand the relationship that the president-elect's campaign is permitted to have with business interests. At the time of writing, November 12, 2024, former President Trump's transition team has not signed a Memorandum of Understanding (MOU) with the current administration, agreeing to adopt an ethics plan meeting minimal standards under the Presidential Transition Act (PTA) in exchange for national security information and access to government agencies. With that said, the Trump team asserts that transition staff have signed an internal ethics pledge. The pledge reportedly regulates conflicts of interest and lobbying, but the exact contours of the pledge are unavailable to the public at this time. Additionally, the Trump team has not yet signed an MOU with the General Services Administration (GSA), an agency that provides office space, funding, and administrative support to transition teams. Because an MOU between the GSA and the Trump team has not been signed, former President Trump's team is permitted to accept contributions of more than $5,000 per person, organization, or entity. It is important to continue to track MOUs updates as when it is signed, the contribution limits go into place.
With the election all but finished, business leaders may be preparing themselves and their companies to work with the Trump administration. This requires knowing the leadership and rules governing the Trump transition team and being vigilant for developments in the structure and policy of the transition team. Taking these steps should help business leaders prepare for and engage with the changing of the guard.
Coming Up Next: The Ins and Outs of Inaugurations.
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