President Donald Trump issued an executive order this week to reorganize and streamline the executive branch of government, which includes such federal agencies as the Securities and Exchange Commission and the Cabinet — including the departments of Labor and Justice — as well as the Social Security Administration.
Trump's Comprehensive Plan for Reorganizing the Executive Branch directs the Office of Management and Budget director to propose a plan to "reorganize governmental functions and eliminate unnecessary agencies."
The plan requires that heads of federal agencies must submit, within 180 days of the order, to OMB a proposed plan to "reorganize the 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 such federal agency revisions, and develop a plan to be presented to the president that includes weighing 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;
- 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;
- Certain administrative capabilities are redundant with those of another agency, component, or program;
- The costs of continuing to operate an agency, a component or a program are justified by the public benefits it provides; and
- The costs of shutting down or merging agencies, components or programs, including the costs of addressing the equities of affected agency staff.
The head of OMB is also called upon to consult with the head of each agency in developing the proposed plan.
Former Rep. Barney Frank of Massachusetts, who co-wrote the Dodd-Frank Wall Street Reform and Consumer Protection Act, floated a bill before he retired in 2012 to merge the SEC and the Commodity Futures Trading Commission.
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Melanie Waddell
Melanie is senior editor and Washington bureau chief of ThinkAdvisor. Her ThinkAdvisor coverage zeros in on how politics, policy, legislation and regulations affect the investment advisory space. Melanie’s coverage has been cited in various lawmakers’ reports, letters and bills, and in the Labor Department’s fiduciary rule in 2024. In 2019, Melanie received an Honorable Mention, Range of Work by a Single Author award from @Folio. Melanie joined Investment Advisor magazine as New York bureau chief in 2000. She has been a columnist since 2002. She started her career in Washington in 1994, covering financial issues at American Banker. Since 1997, Melanie has been covering investment-related issues, holding senior editorial positions at American Banker publications in both Washington and New York. Briefly, she was content chief for Internet Capital Group’s EFinancialWorld in New York and wrote freelance articles for Institutional Investor. Melanie holds a bachelor’s degree in English from Towson University. She interned at The Baltimore Sun and its suburban edition.
