Washington's administration set many precedents and created many traditions. Washington's actions set up numerous standards that are still followed today. He appointed his cabinet unchallenged by Congress and began to rely on them for advice. He chose John Jay's successor as chief justice from outside the bench instead of based on seniority. Further, he chose to serve only two terms, setting a precedent that lasted until Franklin Roosevelt.

Domestically, Washington relied on his secretary of the treasury, Alexander Hamilton, to help him fix monetary issues in the nation. He had the national government assume all state debts and borrow money from foreign governments to pay them. Further, the Bill of Rights was approved, which led to the last two holdouts, North Carolina and Rhode Island, joining the Union.

Washington feared any actions that divided the nation. He fought against the rise of factions, especially within his own cabinet between his secretary of state, Thomas Jefferson, and his secretary of the treasury, Alexander Hamilton. To Washington's dismay, they both resigned during his second term.

Whiskey Rebellion

During his second term, Washington was able to stop the first real challenge to federal authority with the suppression of the Whiskey Rebellion in 1794. Pennsylvania farmers refused to pay a tax on whiskey because they felt that the federal government did not have the right to collect taxes. He sent troops to ensure compliance, which effectively ended the rebellion.

Neutrality

In foreign affairs, Washington declared the Proclamation of Neutrality in 1793, which stated that the United States would be impartial toward belligerent powers currently in a war. This upset some who felt that the United States owed a greater allegiance to France, which had helped to defeat the British in the Revolutionary War. At the same time, Washington tried to normalize relations with the British by agreeing to Jay's Treaty, which established trade relations and led to the British withdrawal from the Northwest Territory in exchange for allowing the British to search and seize anything found on American ships traveling into the ports of Britain's enemies. This forestalled conflict with the British until the War of 1812.

In 1795, Pinckney's Treaty created a boundary between the United States and the Spanish-held Florida. Further, the United States was allowed to travel the entire Mississippi for purpose of trade.

Washington's belief in neutrality was reiterated during his farewell address in 1796, in which he warned against foreign entanglements. This warning became part of the American political landscape as seen in the issues that arose around joining World War I and World War II.