Office of Management and Budget

Office of Management and Budget
Agency name	Office of Management and Budget
Logo width	150
Formed	July 1, 1970
Preceding1	Bureau of the Budget
Jurisdiction	Federal government of the United States
Headquarters	Eisenhower Executive Office Building, Washington, D.C.
Employees	Approximately 500
Chief1 name	Shalanda Young
Chief1 position	Director
Chief2 name	Nani Coloretti
Chief2 position	Deputy Director
Parent department	Executive Office of the President of the United States
Website	www.whitehouse.gov/omb

Office of Management and Budget. It is a critical component within the Executive Office of the President of the United States, serving as the largest office within that structure. Its primary mission is to assist the President of the United States in overseeing the preparation of the federal budget and supervising its administration across executive departments and agencies. The office plays a central role in the president's policy agenda, ensuring that agency regulations, reports, testimony, and proposed legislation are consistent with administration objectives and fiscal policy.

History

The origins trace back to the Bureau of the Budget, which was created by the Budget and Accounting Act of 1921 and originally housed within the Department of the Treasury. This act was a response to the financial management challenges highlighted by World War I and was significantly influenced by the recommendations of the Taft Commission on Economy and Efficiency. In 1939, the bureau was transferred to the newly established Executive Office of the President under President Franklin D. Roosevelt via Reorganization Plan No. I. It was formally reorganized and renamed by President Richard Nixon through Reorganization Plan No. 2 of 1970, which took effect on July 1, 1970, expanding its functions beyond mere budget preparation to include broader management responsibilities for the federal government.

Organization and structure

The office is led by a Director and a Deputy Director, both of whom require confirmation by the United States Senate. Its internal structure is divided into several resource management offices that align with major federal domains, such as National Security, Health and Human Services, and Natural Resources. Key components include the Office of Information and Regulatory Affairs, which oversees federal regulatory policy, and the Office of Federal Procurement Policy. The staff consists of a mix of career civil servants and political appointees, with expertise in areas like economics, public administration, and program evaluation.

Functions and responsibilities

Its core functions are centered on federal budget development and the management of executive agency performance. It is responsible for coordinating the president's annual budget submission to the United States Congress, a document that outlines administration priorities for funding programs like the Department of Defense and the Department of Health and Human Services. Beyond fiscal policy, it reviews all significant agency regulations, coordinates legislative clearance for testimony and bills from entities like the Environmental Protection Agency, and oversees the implementation of government-wide management initiatives, including those related to the Paperwork Reduction Act and information technology.

Budget formulation process

The process is a year-long cycle beginning each spring. It issues circulars, such as OMB Circular A-11, providing detailed instructions to agencies like the Department of Energy and the Department of Veterans Affairs for preparing their budget requests. Agency submissions are rigorously reviewed by staff through fall hearings, where funding levels are negotiated against presidential priorities and overall fiscal constraints. The final decisions are compiled into the president's budget, a multivolume document transmitted to Congress, typically by the first Monday in February, as required by the Congressional Budget and Impoundment Control Act of 1974.

Relationship with Congress and other agencies

While it is an arm of the executive branch, it maintains a constant, often complex, relationship with the legislative branch. Its officials, including the director, frequently testify before committees like the House Budget Committee and the Senate Appropriations Committee. It works closely with the Congressional Budget Office and the Government Accountability Office on fiscal data and oversight. Within the executive branch, it exerts central control over other agencies' budgetary and regulatory actions, acting as a gatekeeper for the Oval Office and often negotiating with cabinet secretaries from departments like the Department of Transportation.

Directors of the OMB

The director is a cabinet-level position and a key advisor to the president. Notable directors have included George Shultz under President Nixon, who later served as Secretary of State; Alice Rivlin, the first woman to hold the post under President Bill Clinton; and Mick Mulvaney, who served under President Donald Trump. The position has been a stepping stone to other high offices, such as Secretary of the Treasury, exemplified by Jacob Lew. The current director is Shalanda Young, who was confirmed by the United States Senate in March 2022.

Category:Executive Office of the President of the United States Category:Budget of the United States Category:Government agencies established in 1970