President Trump Orders OMB to Make Recommendations to Eliminate or Streamline Agencies

President Trump recently issued Executive Order 13781 requiring the director of the Office of Management and Budget to propose a plan to eliminate unnecessary federal agencies, components of agencies, and agency programs, and to merge functions for greater efficiency.

Within 180 days, the head of each federal agency, including HUD Secretary Ben Carson, must submit to OMB a plan to reorganize the agency, “if appropriate.” In addition, OMB must publish a notice in the Federal Register inviting public suggestions for improving the organization and functioning of the executive branch of government.

At the end of the public suggestion period, OMB has another 180 days to submit a reorganization plan to the president. This plan must include recommendations to eliminate unnecessary agencies, components of agencies, and agency functions and to merge functions for greater efficiency.

In developing the proposed plan, the OMB director is to consider:

• Whether some or all of the functions of an agency, a component, or a program are appropriate for the federal government or would be better left to state or local governments or to the private sector through free enterprise;
• Whether some or all of the functions of an agency, a component, or a program are redundant, including with those of another agency, component, or program;
• Whether certain administrative capabilities necessary for operating an agency, a component, or a program are redundant with those of another agency, component, or program;
• Whether the costs of continuing to operate an agency, a component, or a program are justified by the public benefits it provides; and
• The costs of shutting down or merging agencies, components, or programs, including the costs of addressing the equities of affected agency staff.