President Donald Trump issued an executive order to reorganizeand streamline the executive branch of government, which includessuch federal agencies as the Securities and Exchange Commission andthe Cabinet — including the departments of Labor and Justice — aswell as the Social Security Administration.

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Trump's Comprehensive Plan for Reorganizing the Executive Branchdirects the Office of Management and Budget director to propose aplan to “reorganize governmental functions and eliminateunnecessary agencies.”

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The plan requires that heads of federal agencies must submit,within 180 days of the order, to OMB a proposed plan to “reorganizethe agency, if appropriate, in order to improve the efficiency,effectiveness and accountability of that agency.”

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The head of OMB is also directed to seek public comment on suchfederal agency revisions, and develop a plan to be presented to thepresident that includes weighing whether:

  • Some or all of the functions of an agency, a component or aprogram are appropriate for the federal government or would bebetter left to state or local governments or to the private sectorthrough free enterprise;

  • Some or all of the functions of an agency, a component or aprogram are redundant, including with those of another agency,component or program;

  • Certain administrative capabilities are redundant with those ofanother agency, component or program;

  • The costs of continuing to operate an agency, a component or aprogram are justified by the public benefits it provides; and

  • The costs of shutting down or merging agencies, components orprograms, including the costs of addressing the equities ofaffected agency staff.

The head of OMB is also called upon to consult with the head ofeach agency in developing the proposed plan.

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