Key Policies Shaping Trump’s Second Term
Today marks two months since the start of President Trump’s second term, and his administration has moved aggressively to implement policies aimed at strengthening border security, reshaping economic policy, and streamlining government spending. From declaring a national emergency at the southern border to establishing a strategic Bitcoin reserve, Trump’s executive actions show a strong commitment to his “America First” agenda.
In the words of the White House, “President Trump is committed to lowering costs for all Americans, securing [the] borders, unleashing American energy dominance, restoring peace through strength, and making all Americans safe and secure once again.” Here’s a look at the Trump administration’s most significant moves so far in hopes of realising that vision.
Border Security at the Forefront
In one of his first major actions since returning to office, President Trump signed an executive order on January 22, 2025, declaring a national emergency at the U.S.-Mexico border. Citing a record-breaking 8.72 million border encounters from fiscal years 2021-2024, the White House framed the move as a necessary response to a “catastrophic immigration crisis.” The order directs the Department of Defense to deploy additional military personnel, including National Guard troops and the completion of the border wall. Additionally, the administration has granted the Department of Homeland Security greater flexibility to conduct aerial surveillance missions.
The declaration follows concerns over human trafficking and drug smuggling at the border. According to the White House, approximately 550,000 unaccompanied minors have been encountered since FY21, while fentanyl-related deaths surged to 75,000 in 2023. The administration has also pointed to violent gangs, including Venezuela’s Tren de Aragua, which it claims have contributed to rising crime in U.S. cities.
Beyond enforcement measures, the administration has introduced tariffs on imports from nations that fail to cooperate on immigration control, arguing that such duties will offset the financial burden of illegal immigration. Similar tariffs have been imposed to combat drug smuggling, with the revenue directed toward border enforcement and law enforcement initiatives.
Establishing a Strategic Bitcoin Reserve
In a move that has drawn significant attention from financial markets, Trump signed an executive order on March 7, 2025, to establish a Strategic Bitcoin Reserve. The reserve will include approximately 198,000 BTC, worth $17.3 billion, that the U.S. government has seized through law enforcement actions. White House crypto and ‘AI czar’ David Sacks emphasised that “no taxpayer money will be spent on acquiring BTC,” instead relying on forfeitures from criminal or civil proceedings.
While some analysts have called the order “symbolic,” others see it as a major shift in how the U.S. government treats digital assets. Andrew O’Neill, managing director of digital assets at S&P Global Ratings, noted that the order marks “the first time bitcoin is formally recognised as a reserve asset of the United States government.” The administration has also outlined a broader digital asset stockpile that will include other cryptocurrencies like Ethereum and Solana, though it will not actively purchase additional holdings.
Despite the announcement, Bitcoin prices saw a temporary dip, falling to $84,700 amid investor concerns over the lack of new government purchases. However, markets partially rebounded to $87,600 following speculation about potential tax incentives for crypto investors.
Tightening Foreign Investment Regulations
On February 21, 2025, Trump issued a memorandum tightening restrictions on foreign direct investment under the “America First Investment Policy.” The policy places particular scrutiny on investments from China, Russia, Iran, North Korea, Cuba, and Venezuela, directing the Committee on Foreign Investment in the United States (CFIUS) to block transactions in critical industries, including technology, infrastructure, healthcare, and energy.
The order expands CFIUS’s authority beyond mergers and acquisitions, now allowing it to review “greenfield” investments—new business ventures started from scratch—if they involve adversarial nations. It also restricts foreign purchases of U.S. farmland near sensitive sites such as military bases. Additionally, the administration is reviewing a 1984 tax treaty with China that allows multinational corporations to deduct Chinese taxes from their U.S. tax liability.
Overhauling Government Spending
As part of a broader effort to rein in federal spending, Trump issued an executive order on February 26, 2025, launching the “Department of Government Efficiency” (DOGE). The initiative requires agencies to track every contract, grant, and loan payment, with federal employees providing written justifications for each expenditure. This data will be made publicly available whenever possible.
Additionally, agencies have been instructed to review existing contracts and grants, prioritising those involving educational institutions and foreign entities. Within 30 days, agencies must identify contracts for termination or renegotiation if they are deemed inefficient or misaligned with administration priorities.
The Trump administration claims that these measures have saved American taxpayers over $100 billion so far, with Musk estimating that long-term cuts could reach an unprecedented $2 trillion.
Since Trump’s inauguration, more than 110,000 federal employees have left their positions, marking one of the largest workforce reductions in U.S. government history. The cuts include 75,000 voluntary buyouts under a “deferred resignation” program and 35,000 terminations. Among the hardest-hit agencies is the Social Security Administration (SSA), which could see its workforce cut in half in the coming months.
The administration has justified the layoffs by citing advances in artificial intelligence and digital automation. “We’re replacing inefficiency with technology,” Musk tweeted in February, arguing that AI-driven self-service portals will allow agencies to operate effectively with fewer personnel.
Judicial Appointments and Law Enforcement Policy
On the legal front, the Trump administration has reaffirmed its commitment to reshaping the judiciary and bolstering law enforcement. In his previous term, Trump appointed over 230 federal judges and secured a 6-3 conservative majority on the Supreme Court. His administration has signalled plans to continue filling vacancies with judges who interpret the Constitution “as written.”
The White House has also emphasised its law-and-order agenda, building on past initiatives such as Operation Legend, which led to more than 5,500 arrests in an effort to combat violent crime. In a nod to law enforcement, Trump has pledged to expand federal funding for police departments and reinstate programs that provide surplus military equipment to local agencies.
Additionally, the administration is reviewing policies on criminal justice reform, including the First Step Act, which was passed during Trump’s first term to reduce recidivism. The White House has indicated it may introduce further measures aimed at promoting “second-chance hiring” for former inmates.
Looking Ahead
With a flurry of executive actions and policy initiatives in his first two months, President Trump has made clear that his second term will be defined by aggressive policymaking in pursuit of realising his “America First” agenda, positioning these measures as decisive steps towards restoring American sovereignty and economic strength.