President Donald J. Trump signed a Presidential Memorandum on Mar. 11 directing the Tennessee Valley Authority Board of Directors to set reasonable compensation limits for all TVA employees, including the chief executive officer.
The move is intended to promote fiscal responsibility, restore public trust, and bring TVA pay practices in line with public-sector standards. The White House said that this action aims to address concerns about excessive executive pay at the federally owned corporation.
"President Trump is ending excessive executive pay at the TVA, where CEOs have received millions in compensation, far exceeding salaries paid elsewhere in the Federal government," according to the statement released by the administration.
The memorandum also emphasizes putting taxpayers first by demanding fiscal discipline and accountability across federal agencies. The directive calls for changes that would ensure TVA's compensation structure reflects its status as a public entity.
This step comes amid ongoing discussions about government spending and oversight of federally affiliated organizations. The administration said it expects these measures will help restore accountability and align TVA operations more closely with other parts of the federal government.
