Trump Administration Releases Plan to Reorganize the Federal Government

In a wide-ranging blueprint to overhaul the federal government, the White House released a report entitled, “Delivering Government Solutions in the 21st Century,” which outlined a wide-ranging plan to overhaul the federal government. The blueprint would impact nearly every agency.

This effort stems from an Executive Order signed by President Trump last year which directed the Office of Management and Budget (OMB) to work on a comprehensive plan to reorganize the executive branch and reduce duplication and redundancy while improving efficiency. Outlined in the report, beginning on page 93, is a recommendation to streamline small business programs across the federal government, specifically citing duplicative programs in the Small Business Administration and the U.S. Departments of Agriculture, Transportation, Treasury, and Veterans Affairs.

Programs dealing with small business lending, various certifications and contracting support would be consolidated and managed within the Small Business Administration. If there are contracting programs requiring technical expertise, those programs could continue to reside in their current agency. Per the report, the goal would be to “strengthen and streamline SBA’s operations across two of its primary program areas: 1) capital access; and 2) Government contracting support.”

It is important to note that most of these actions would require congressional approval.

The Trump Administration Sends Request to Congress for Over $15 Billion of Spending Cuts for This Year

Using an obscure federal law, the White House sent a sweeping $15.4 billion rescission package to Congress which requests spending cuts this year across 10 federal departments.  This request comes from the Trump Administration in an effort to address the rising federal deficit.

Some programs in which cuts were requested include:

  • $50 million from the Rural Business-Cooperative Service (Department of Agriculture)
  • $30 million from the Economic Development Administration (Department of Commerce)
  • $4.3 billion from the Advanced Technology Vehicles Manufacturing Loan Program (Department of Energy)
  • $683 million from the Innovative Technology Loan Guarantee Program (Department of Energy)
  • $800 million from the Center for Medicare and Medicaid Innovation (Department of Health & Human Services)
  • $179.1 million from the Federal Highway Administration (Department of Transportation)
  • $53.4 million from the Federal Railroad Administration (Department of Transportation)
  • $46.5 million from the Federal Transit Administration (Department of Transportation)
  • $22.7 million from the Community Development Financial Institution (CDFI) Fund (Department of Treasury)
  • $151 million from Capital Magnet Fund, Community Development Financial Institutions (Department of Treasury)

These cuts, if approved, could impact current government contracts depending on the agency. In addition, cuts to the CDFI Fund and the Capital Magnet Fund will have a big impact on lending to minority and women-owned businesses and those in economically disadvantaged areas.

The House Appropriations Committee has 25 days to address the request by crafting its own bill based on the White House recommendations or decide not to act.  After 25 days, other House members can introduce their own rescissions legislation. Congress must act within 45 days of the request, which was made on May 8th.  If the House passes a bill, it would be taken up next by the Senate. Rescissions bills require only a simple majority for passage.