Executive Branch Reorganization Initiatives During the 112th Congress: A Brief Overview

Henry B. Hogue
Analyst in American National Government

President Barack Obama announced, in his State of the Union address, that his Administration would be proposing a reorganization of executive branch agencies. On March 11, 2011, the President issued a memorandum to the heads of departments and executive branch agencies providing further detail and direction on the development of a reorganization plan. The Deputy Director for Management (DDM) at the Office of Management and Budget was given the responsibility for “leading the effort to create a plan” for executive branch reorganization, with a “first focus … on the executive departments and agencies and the functions that support one of our most important priorities increasing trade, exports, and our overall competitiveness (‘trade and competitiveness’).” The DDM is to submit related recommendations, based on specified principles, to the President within 90 days of the memorandum’s issuance (i.e., by June 9, 2011).

A number of bills with reorganization-related provisions have been introduced in the House and Senate during the 112th Congress. Some of these provisions would defund or abolish specified government programs and agencies (e.g., H.R. 1, H.R. 861, H.R. 672, and S. 162). Some introduced bills would merge existing agencies and their functions or consolidate programs (e.g., H.R. 1782, S. 892, and S. 945). Other bills would establish bipartisan commissions that would evaluate current organizational arrangements and develop legislation that would be considered by Congress under expedited procedures (e.g., H.R. 155 and S. 14). Still other bills would make changes to organizational arrangements that were newly established by the 111th Congress, such as the Consumer Financial Protection Bureau and the Independent Payment Advisory Board (e.g., H.R. 557, H.R. 1355, H.R. 1121, S. 737, H.R. 452, and S. 668).

The context within which the Obama Administration and Congress are proposing and considering changes to the federal bureaucracy is shaped by a number of factors. These factors include heightened concerns about the federal debt, the deficit, job creation, and economic recovery; controversy related to financial regulatory and health care financing-related agencies established by legislation enacted during the 111th Congress; a belief, among some, that the federal government should be smaller and more efficient; and a perception that some agencies have failed to fulfill their responsibilities.

Constitutionally, the establishment and organization of governmental entities, such as departments and agencies, is the province of Congress. The President has often played a leadership role in reorganization of the executive branch by transmitting proposals and advocating legislative action in public statements and private negotiations. In the past, Congress has provided the President with greater leverage to statutorily change executive branch organizational arrangements by enacting time-limited expedited reorganization processes. Presidents and their political appointees also have a variety of administrative tools at their disposal for making smaller-scale structural and process organizational changes.

This report describes the ways that executive branch reorganization can occur as a result of Administration and congressional actions, and describes recent initiatives in the context of that typology. The report concludes with some observations regarding federal reorganization efforts.


Date of Report: May 26, 2011
Number of Pages: 22
Order Number: R41841
Price: $29.95

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