Comprehensive Plan for Reorganizing the Executive Branch
Signed: March 13, 2017
Published: March 16, 2017
Document Number: 2017-05399
📋Summary
This executive order directs the Office of Management and Budget (OMB) to develop a government-wide plan to reorganize the executive branch to improve efficiency, effectiveness, and accountability, including identifying agencies or programs that could be eliminated, merged, or restructured. It affects all federal executive agencies, requiring each agency head to submit a reorganization proposal to OMB within 180 days, and it also invites the public to submit ideas for improvements. OMB must review agency proposals and public input, then submit a broader reorganization plan to the President, including any needed administrative steps or proposed legislation. In building the plan, OMB is told to consider whether functions are better handled by states, local governments, or the private sector; whether programs are duplicative; and whether costs are justified, including the costs and workforce impacts of shutdowns or mergers.
💼Business Impact
This order signals potential consolidation or elimination of federal agencies/programs, so businesses most affected are those heavily dependent on federal regulation, permits, grants, or contracting—e.g., defense and federal contractors, healthcare and life sciences, energy/environmental services, transportation, financial services, and companies that rely on specific agency programs (SBA support, rural development, export promotion, etc.). Compliance requirements may shift as functions move between agencies or to states/localities, creating short-term uncertainty (new points of contact, revised reporting/filing processes, changed enforcement priorities) but also opportunities to influence the reorganization via the Federal Register comment process and to capture work from transition needs (IT modernization, consulting, shared services, outsourcing). Immediate actions: map your top regulatory/contracting dependencies by agency and program, monitor OMB and relevant agency reorganization announcements and Federal Register notices, and prepare contingency plans for permit/approval timelines and contract administration (including who the contracting officer/regulator will be if functions merge). If you have a strong stake, submit targeted comments with data (cost, timelines, duplication) and engage trade associations to advocate for continuity of critical programs and clear transition guidance.
Full Text
Executive Order 13781 of March 13, 2017
Comprehensive Plan for Reorganizing the Executive Branch
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:
Section 1 . Purpose. This order is intended to improve the efficiency, effectiveness, and accountability of the executive branch by directing the Director of the Office of Management and Budget (Director) to propose a plan to reorganize governmental functions and eliminate unnecessary agencies (as defined in section 551(1) of title 5, United States Code), components of agencies, and agency programs.
Sec. 2 . Proposed Plan to Improve the Efficiency, Effectiveness, and Accountability of Federal Agencies, Including, as Appropriate, to Eliminate or Reorganize Unnecessary or Redundant Federal Agencies. (a) Within 180 days of the date of this order, the head of each agency shall submit to the Director a proposed plan to reorganize the agency, if appropriate, in order to improve the efficiency, effectiveness, and accountability of that agency.
(b) The Director shall publish a notice in the Federal Register inviting the public to suggest improvements in the organization and functioning of the executive branch and shall consider the suggestions when formulating the proposed plan described in subsection (c) of this section.
(c) Within 180 days after the closing date for the submission of suggestions pursuant to subsection (b) of this section, the Director shall submit to the President a proposed plan to reorganize the executive branch in order to improve the efficiency, effectiveness, and accountability of agencies. The proposed plan shall include, as appropriate, recommendations to eliminate unnecessary agencies, components of agencies, and agency programs, and to merge functions. The proposed plan shall include recommendations for any legislation or administrative measures necessary to achieve the proposed reorganization.
(d) In developing the proposed plan described in subsection (c) of this section, the Director shall consider, in addition to any other relevant factors:
(i) 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;
(ii) 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;
(iii) whether certain administrative capabilities necessary for operating an agency, a component, or a program are redundant with those of another agency, component, or program;
(iv) whether the costs of continuing to operate an agency, a component, or a program are justified by the public benefits it provides; and
(v) the costs of shutting down or merging agencies, components, or programs, including the costs of addressing the equities of affected agency staff.
(e) In developing the proposed plan described in subsection (c) of this section, the Director shall consult with the head of each agency and, consistent with applicable law, with persons or entities outside the Federal ( printed page 13960) Government with relevant expertise in organizational structure and management.
Sec. 3 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
March 13, 2017.