HR1295-119

What This Bill Does

The Reorganizing Government Act amends chapter 9 of title 5 to update presidential reorganization-plan authority. It broadens the purposes of reorganization plans to include eliminating operations determined unnecessary for constitutional duties, reducing the number of federal employees, decreasing the cost and difficulty of regulatory compliance, eliminating unnecessary or burdensome rules and requirements, and eliminating government operations that do not serve the public interest. It changes terminology from agencies to executive departments but defines executive department broadly to include executive departments, agencies, independent establishments, wholly owned federal corporations, offices, and officers of the executive branch, excluding GAO and the Comptroller General. The bill removes a restriction that prevented plans from abolishing enforcement functions or statutory programs. It also restores reorganization authority through December 31, 2026, bars plans that create a net increase in federal workers or expenditures, and updates expiration language.

Who Benefits and How

The President and White House management officials benefit from renewed authority to submit reorganization plans that consolidate, transfer, reduce, or eliminate executive-branch functions. Businesses and regulated entities benefit if plans reduce compliance costs or eliminate burdensome rules and requirements. Fiscal conservatives benefit from authority aimed at reducing federal headcount, expenditures, and operations deemed unnecessary. Agency leaders seeking consolidation benefit from a statutory vehicle for restructuring offices, functions, and programs. Members of Congress favoring government downsizing benefit from a process focused on reductions rather than net workforce or spending increases.

Who Bears the Burden and How

Federal employees bear job-security risk because reducing the number of federal employees becomes an explicit reorganization purpose and net workforce increases are barred. Federal programs and enforcement functions bear risk because the bill removes the existing restriction against abolishing statutory programs or enforcement functions through a plan. Agencies must implement reorganizations, transfers, consolidations, or eliminations approved under the revived authority. Program beneficiaries and regulated communities that rely on enforcement may face reduced services or oversight if plans eliminate functions. Congress must review reorganization plans under the chapter 9 process before the revived authority expires at the end of 2026.

Key Provisions

• Adds reorganization purposes for reducing federal employees, reducing compliance costs, eliminating burdensome rules, and eliminating operations not serving the public interest.
• Broadly defines executive department to cover executive agencies, independent establishments, federal corporations, offices, and officers.
• Removes the restriction against abolishing enforcement functions or statutory programs.
• Restores reorganization authority through December 31, 2026.
• Bars plans that create a net increase in federal workers or expenditures.
• Provides that GAO and the Comptroller General remain outside the reorganization definition.
• Requires Congress to evaluate reorganization plans under the revived chapter 9 process before the temporary authority expires.