What’s in the President’s Proposal to Reorganize the Federal Government?

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This is the first in a series of three blogs dealing with aspects of the president’s federal reorganization plan. It is based, in part, on a recent NARC Wednesday Legislative Briefing that was held on the president’s reorganization plan on Wednesday, August 7.

On June 21, the president released his plan to reorganize certain parts of the executive branch. If adopted by Congress and implemented by the president, it would touch virtually every agency in the federal government and the way Americans receive government services.

The following are proposals that would have the most significant impact on regions:

The Department of Education and the Workforce

The president’s proposal would merge the Departments of Education and Labor into a single department. The new Department of Education and the Workforce would include four separate agencies focusing on four different issue areas: K-12 education, enforcement of worker protections, workforce and higher education, and research and administration.

The American Workforce and Higher Education Administration, one of the four new agencies, would be charged with ensuring U.S. workers possess the skills necessary to succeed on the job. This agency would bring together workforce development programs from the Employment and Training Administration at the Department of Labor and higher education, vocational education, and rehabilitation services from the Department of Education.

The Department of Health and Human Services

The proposal would also reshuffle other domestic agencies and would make it possible, according to the White House, to revamp agencies and, where Congress agrees, reduce funding. Social safety net programs – including housing from the Department of Housing and Urban Development, Temporary Assistance for Needy Families and other welfare programs from the Department of Health and Human Services, and nutrition programs including the Supplemental Nutrition Association Program (SNAP) from the Department of Agriculture — would be consolidated under a new Department of Health and Public Welfare which would replace the current Department of Health and Human Services.

Other Proposed Changes

If the president’s proposal is adopted and implemented there would be many other potential changes, including:

  • Transferring of the Community Development Block Grant (CDBG) program to the Department of Commerce into a new economic development agency (more detail will be provided on this in an upcoming blog post);
  • Privatizing the Postal Service;
  • Creating a government-wide public-private partnership office to “improve services to citizens”;
  • Relocating more staff and offices outside of the National Capital Region (Washington, DC and its Virginia and Maryland suburbs);
  • Consolidating food safety functions into a single office within the Department of Agriculture;
  • Moving USDA’s rural housing activities to the Department of Housing and Development;
  • Shrinking the Office of Personnel Management and sending some of its functions to the Department of Defense;
  • Privatizing the FAA’s air traffic control services and the Saint Lawrence Seaway; and
  • Revamping the Army Corps of Engineers by dividing its functions between the Department of Transportation (navigation) and the Department of the Interior (flood control, wetland permitting, and management of inland waterways).

Why Is this Reorganization Plan Being Proposed Now?

Mick Mulvaney, the director of the Office of Management and Budget, a former member of Congress, and a founding member of the conservative House Freedom Caucus, was the main architect of this plan. As a member of Congress, Mulvaney had argued for merging human services programs such as the Supplemental Nutrition Assistance Program (SNAP), housing assistance, and Temporary Assistance for Needy Families (TANF), among others, under a single umbrella agency. He has also argued strongly that the federal government needs to be streamlined and that past efforts have been unsuccessful. This proposal would allow the administration to create a new umbrella department for all welfare programs. Whether these proposals would streamline government remains to be seen.

Over the next two weeks, in two new blogs, we will explore what it would mean to the future of CDBG to transfer it to a new economic development agency within the Department of Commerce and what the likelihood is that Congress would adopt this or any reorganization plan.

Neil Bomberg

Neil Bomberg

Senior Policy Advisor at National Association of Regional Councils
I am a highly experienced public sector lobbyist committed to ensuring that the issues important to regions and the local governments they represent are heard in Congress and the Administration. My issue areas include: budget and appropriations, human services, health care, workforce development, and economic and community development. I worked as a lobbyist at the National Association of Counties and National League of Cities for more than 26 years where I focused on labor and employment, and human development, respectively.
Neil Bomberg

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