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The Office of Management and Budget (OMB) is the largest office within the Executive Office of the President of the United States (EOP). OMB's most prominent function is to produce the president's budget, but it also examines agency programs, policies, and procedures to see whether they comply with the president's policies and coordinates inter-agency policy initiatives. Shalanda Young became OMB's acting director in March 2021, and was confirmed by the Senate in March 2022.


History

The Bureau of the Budget, OMB's predecessor, was established in 1921 as a part of the Department of the Treasury by the Budget and Accounting Act of 1921, which President Warren G. Harding signed into law. The Bureau of the Budget was moved to the
Executive Office of the President The Executive Office of the President (EOP) comprises the offices and agencies that support the work of the president at the center of the executive branch of the United States federal government. The EOP consists of several offices and agenc ...
in 1939 and was run by Harold D. Smith during the government's rapid expansion of spending during
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
. James L. Sundquist, a staffer at the Bureau of the Budget, called the relationship between the president and the bureau extremely close and subsequent bureau directors politicians, not public administrators. The bureau was reorganized into the Office of Management and Budget in 1970 during the
Nixon administration Richard Nixon's tenure as the 37th president of the United States began with his first inauguration on January 20, 1969, and ended when he resigned on August 9, 1974, in the face of almost certain impeachment because of the Watergate Scanda ...
. The first OMB included Roy Ash (head), Paul O'Neill (assistant director), Fred Malek (deputy director), Frank Zarb (associate director) and two dozen others. In the 1990s, OMB was reorganized to remove the distinction between management staff and budgetary staff by combining the dual roles into each given program examiner within the Resource Management Offices.


Purpose

OMB prepares the president's budget proposal to Congress and supervises the administration of the executive branch agencies. It evaluates the effectiveness of agency programs, policies, and procedures, assesses competing funding demands among agencies, and sets funding priorities. OMB ensures that agency reports, rules, testimony, and proposed legislation are consistent with the president's budget and administration policies. OMB also oversees and coordinates the administration's procurement, financial management, information, and regulatory policies. In each of these areas, OMB's role is to help improve administrative management, develop better performance measures and coordinating mechanisms, and reduce unnecessary burdens on the public. OMB's critical missions are: #Budget development and execution, a prominent government-wide process managed from the Executive Office of the President (EOP) and a device by which a president implements their policies, priorities, and actions in everything from the Department of Defense to
NASA The National Aeronautics and Space Administration (NASA ) is an independent agencies of the United States government, independent agency of the US federal government responsible for the civil List of government space agencies, space program ...
. #Managing other agencies' financials, paperwork, and IT.


Structure


Overview

OMB is made up mainly of career appointed staff who provide continuity across changes of party and administration in the White House. Six positions within OMBthe Director, the Deputy Director, the Deputy Director for Management, and the administrators of the Office of Information and Regulatory Affairs, the
Office of Federal Procurement Policy The Office of Federal Procurement Policy (OFPP) is a component of the United States Office of Management and Budget (OMB), which is part of the Executive Office of the President of the United States (EOP). OFPP provides overall direction for gover ...
, and the
Office of Federal Financial Management The Office of Federal Financial Management (OFFM) is a component of the United States Office of Management and Budget (OMB), which is part of the Executive Office of the President of the United States The Executive Office of the President (EO ...
are presidentially appointed and Senate- confirmed positions. OMB's largest components are the five Resource Management Offices, which are organized along functional lines mirroring the federal government, each led by an OMB associate director. Approximately half of all OMB staff are assigned to these offices, the majority of whom are designated as program examiners. Program examiners can be assigned to monitor one or more federal agencies or may be deployed by a topical area, such as monitoring issues relating to U.S. Navy warships. These staff have dual responsibility for both management and budgetary issues, as well as for giving expert advice on all aspects relating to their programs. Each year they review federal agency budget requests and help decide what resource requests will be sent to Congress as part of the president's budget. They perform in-depth program evaluations with the Program Assessment Rating Tool, review proposed regulations and agency testimony, analyze pending legislation, and oversee the aspects of the president's management agenda including agency management scorecards. They are often called upon to provide analysis information to EOP staff. They also provide important information to those assigned to the statutory offices within OMB: the Office of Information and Regulatory Affairs, the Office of Federal Procurement Policy, the Office of Federal Financial Management, and the
Office of E-Government & Information Technology The Office of E-Government & Information Technology, also called the E-Gov office or the Office of the Federal CIO (OFCIO), develops and guides the U.S. federal government's use of Internet-based technologies for the public to interact with the gov ...
, which specializes in issues such as federal regulations and procurement policy and law. Other components are OMB-wide support offices, including the Office of General Counsel, the Office of Legislative Affairs, the Budget Review Division (BRD), and the Legislative Reference Division. The BRD performs government-wide budget coordination and is largely responsible for the technical aspects relating to the release of the president's budget each February. With respect to the estimation of spending for the executive branch, the BRD serves a purpose parallel to that of the
Congressional Budget Office The Congressional Budget Office (CBO) is a List of United States federal agencies, federal agency within the United States Congress, legislative branch of the United States government that provides budget and economic information to Congress. Ins ...
(which was created in response to the OMB) for estimating Congressional spending, the Department of the Treasury for estimating executive branch revenue, and the Joint Committee on Taxation for estimating Congressional revenue. The Legislative Reference Division is the federal government's central clearing house for proposed legislation or testimony by federal officials. It distributes proposed legislation and testimony to all relevant federal reviewers and distills the comments into a consensus opinion of the administration about the proposal. It is also responsible for writing an Enrolled Bill Memorandum to the president once a bill is presented by both chambers of Congress for the president's signature. The Enrolled Bill Memorandum details the bill's particulars, opinions on the bill from relevant federal departments, and an overall opinion about whether it should be signed into law or
vetoed A veto is a legal power to unilaterally stop an official action. In the most typical case, a president or monarch vetoes a bill to stop it from becoming law. In many countries, veto powers are established in the country's constitution. Veto pow ...
. It also issues Statements of Administration Policy that let Congress know the White House's official position on proposed legislation.


Role in the executive budget process

In practice, the president has assigned the OMB certain responsibilities when it comes to the budget and hiring authorities who play key roles in developing it. OMB coordinates the development of the president's budget proposal by issuing circulars, memoranda, and guidance documents to the heads of executive agencies. The OMB works very closely with executive agencies in making sure the budget process and proposal is smooth. The development of the budget within the executive branch has many steps and takes nearly a year to complete. The first step is the OMB informing the president of the country's economic situation. The next step is known as the Spring Guidance: the OMB gives executive agencies instructions on policy guidance to use when coming up with their budget requests along with due dates for them to submit their requests. The OMB then works with the agencies to discuss issues in the upcoming budget. In July, the OMB issues circular A-11 to all agencies, which outlines instructions for submitting the budget proposals, which the agencies submit by September. The
fiscal year A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...
begins October1 and OMB staff meet with senior agency representatives to find out whether their proposals are in line with the president's priorities and policies and identify constraints within the budget proposal until late November. The OMB director then meets with the president and EOP advisors to discuss the agencies' budget proposals and recommends a federal budget proposal, and the agencies are notified of the decisions about their requests. They can appeal to OMB and the president in December if they are dissatisfied with the decisions. After working together to resolve issues, agencies and OMB prepare a budget justification document to present to relevant congressional committees, especially the Appropriations Committee. Finally, by the first Monday in February, the president must review and submit the final budget to Congress to approve. OMB is also responsible for the preparation of Statements of Administrative Policy (SAPs) with the president. These statements allow the OMB to communicate the president's and agencies' policies to the government as a whole and set forth policymakers' agendas. During the review of the federal budget, interest groups can lobby for policy change and affect the budget for the new year. OMB plays a key role in policy conflicts by making sure legislation and agencies' actions are consistent with the executive branch's. OMB has a powerful and influential role in the government, basically making sure its day-to-day operations run. Without a budget, federal employees could not be paid, federal buildings could not open and federal programs would come to a halt in a government shutdown. Shutdowns can occur when Congress refuses to accept a budget.


Suspension and debarment

The Interagency Suspension and Debarment Committee (ISDC) was created as an OMB committee by President Ronald Reagan's
Executive Order In the United States, an executive order is a directive by the president of the United States that manages operations of the federal government. The legal or constitutional basis for executive orders has multiple sources. Article Two of t ...
12549 in 1986, for the purpose of monitoring the implementation of the order. This order mandates executive departments and agencies to: *participate in a government-wide suspension and debarment system, *issue regulations with government-wide criteria and minimum due process procedures when debarring or suspending participants, and *send debarred and suspended participants' identifying information to the General Services Administration for inclusion on a list of excluded persons, now known as the System for Award Management (SAM).


Circulars

Circulars are instructions or information the OMB issues to federal agencies that are indexed by major category: Budget, State and Local Governments, Educational and Non-Profit Institutions, Federal Procurement, Federal Financial Management, Federal Information Resources / Data Collection and Other Special Purpose. Circular NO. A-119 Circular A-119 is for federal participation in the development and use of voluntary consensus standards and in conformity assessment activities. A-119 instructs its agencies to adopt voluntary consensus standards before relying upon industry standards and reducing to a minimum the reliance by agencies on government standards. Adoption of
international standards international standard is a technical standard developed by one or more international standards organizations. International standards are available for consideration and use worldwide. The most prominent such organization is the International Org ...
is widely followed by U.S. agencies. This includes: * Environmental Protection Agency referencing ISO 14001 supporting public policy in environmental management *
Department of Energy A Ministry of Energy or Department of Energy is a government department in some countries that typically oversees the production of fuel and electricity; in the United States, however, it manages nuclear weapons development and conducts energy-re ...
referencing ISO 50001 supporting public policy for energy performance aligned with the International Energy Agency *
Department of Labor The Ministry of Labour ('' UK''), or Labor ('' US''), also known as the Department of Labour, or Labor, is a government department responsible for setting labour standards, labour dispute mechanisms, employment, workforce participation, training, a ...
referencing ISO 45001 supporting public policy in occupational health and safety *
Food and Drug Administration The United States Food and Drug Administration (FDA or US FDA) is a List of United States federal agencies, federal agency of the United States Department of Health and Human Services, Department of Health and Human Services. The FDA is respon ...
referencing ISO 13485 supporting public policy in medical devices *
Food and Drug Administration The United States Food and Drug Administration (FDA or US FDA) is a List of United States federal agencies, federal agency of the United States Department of Health and Human Services, Department of Health and Human Services. The FDA is respon ...
referencing
ISO 22000 ISO 22000 is a Food safety management system which is outcome focused, providing requirements for any organization in the food industry with objective to help to improve overall performance in food safety. These standards are intended to ensure ...
supporting public policy in food products


Organization

*Director of the Office of Management and Budget **Deputy Director, OMB **Executive Associate Director of OMB ***Office of General Counsel ***Office of Legislative Affairs ***Office of Communications ***Office of Economic Policy (EP) ***Management and Operations Division ***Legislative Reference Division ***Budget Review Division (BRD) ***Resource Management Offices ****Natural Resource Programs ****Education, Income Maintenance, and Labor Programs ****Health Programs ****General Government Programs ****National Security Programs **Deputy Director for Management ( Chief Performance Officer of the United States) ***Office of Performance and Personnel Management (OPPM) ***
Office of Federal Financial Management The Office of Federal Financial Management (OFFM) is a component of the United States Office of Management and Budget (OMB), which is part of the Executive Office of the President of the United States The Executive Office of the President (EO ...
(OFFM) ***
Office of Federal Procurement Policy The Office of Federal Procurement Policy (OFPP) is a component of the United States Office of Management and Budget (OMB), which is part of the Executive Office of the President of the United States (EOP). OFPP provides overall direction for gover ...
(OFPP) ***
Office of E-Government & Information Technology The Office of E-Government & Information Technology, also called the E-Gov office or the Office of the Federal CIO (OFCIO), develops and guides the U.S. federal government's use of Internet-based technologies for the public to interact with the gov ...
(administrator:
Federal Chief Information Officer of the United States The federal Chief Information Officer of the United States, also known as the United States Chief Information Officer, is the administrator of the Office of Electronic Government, or the Office of the Federal CIO (OFCIO), which is part of the Of ...
) ****Cyber and National Security Unit ****
United States Digital Service The United States Digital Service is a technology unit housed within the Executive Office of the President of the United States. It provides consultation services to federal agencies on information technology. It seeks to improve and simplify dig ...
(USDS) *** Office of Information and Regulatory Affairs (OIRA) ***Office of the Intellectual Property Enforcement Coordinator (IPEC)


Current appointees

*Director: Shalanda Young **Deputy Director: Nani Coloretti ***Chief of Staff for OMB: Rachel Wallace ***General Counsel: Daniel Jacobson **Deputy Director for Management ( Chief Performance Officer of the United States): Jason Miller ***Controller of the
Office of Federal Financial Management The Office of Federal Financial Management (OFFM) is a component of the United States Office of Management and Budget (OMB), which is part of the Executive Office of the President of the United States The Executive Office of the President (EO ...
: John C. Pasquantino (Acting) ***Administrator of the Office of Federal Procurement Policy: Lesley A. Field (Acting) ***Administrator of the Office of E-Government & Information Technology (
Federal Chief Information Officer of the United States The federal Chief Information Officer of the United States, also known as the United States Chief Information Officer, is the administrator of the Office of Electronic Government, or the Office of the Federal CIO (OFCIO), which is part of the Of ...
): Clare Martorana ***Made in America Director: Celeste Drake ***Administrator of the Office of Information and Regulatory Affairs: Dom Mancini (Acting)


List of directors


See also

* List of federal agencies in the United States * Learning agenda *
United States Census Bureau The United States Census Bureau (USCB), officially the Bureau of the Census, is a principal agency of the U.S. Federal Statistical System, responsible for producing data about the American people and economy. The Census Bureau is part of t ...
**
List of U.S. states and territories by population The states and territories included in the United States Census Bureau's statistics for the United States (population, ethnicity, religion, and most other categories) include the 50 states and the District of Columbia ( Washington, D.C.). Sep ...
** List of metropolitan areas of the United States **
List of United States cities by population This is a list of the most populous incorporated places of the United States. As defined by the United States Census Bureau, an "incorporated place" includes a variety of designations, including city, town, village, borough, and municipal ...
**
List of United States counties and county-equivalents This article lists the 3,243 counties and county equivalents of the United States. The 50 states of the United States are divided into 3,007 ''counties'', political and geographic subdivisions of a state; 236 other local governments and geographi ...
** Primary statistical area (
list A ''list'' is any set of items in a row. List or lists may also refer to: People * List (surname) Organizations * List College, an undergraduate division of the Jewish Theological Seminary of America * SC Germania List, German rugby unio ...
) ***
Combined statistical area Combined statistical area (CSA) is a United States Office of Management and Budget (OMB) term for a combination of adjacent metropolitan (MSA) and micropolitan statistical areas (µSA) across the 50 US states and the territory of Puerto Ric ...
(
list A ''list'' is any set of items in a row. List or lists may also refer to: People * List (surname) Organizations * List College, an undergraduate division of the Jewish Theological Seminary of America * SC Germania List, German rugby unio ...
) *** Core-based statistical area (
list A ''list'' is any set of items in a row. List or lists may also refer to: People * List (surname) Organizations * List College, an undergraduate division of the Jewish Theological Seminary of America * SC Germania List, German rugby unio ...
) ****
Metropolitan statistical area In the United States, a metropolitan statistical area (MSA) is a geographical region with a relatively high population density at its core and close economic ties throughout the area. Such regions are neither legally incorporated as a city or tow ...
(
list A ''list'' is any set of items in a row. List or lists may also refer to: People * List (surname) Organizations * List College, an undergraduate division of the Jewish Theological Seminary of America * SC Germania List, German rugby unio ...
) **** Micropolitan statistical area (
list A ''list'' is any set of items in a row. List or lists may also refer to: People * List (surname) Organizations * List College, an undergraduate division of the Jewish Theological Seminary of America * SC Germania List, German rugby unio ...
) ** United States urban area (
list A ''list'' is any set of items in a row. List or lists may also refer to: People * List (surname) Organizations * List College, an undergraduate division of the Jewish Theological Seminary of America * SC Germania List, German rugby unio ...
) * Title 2 of the Code of Federal Regulations *
Title 5 of the Code of Federal Regulations CFR Title 5 – Administrative Personnel is one of fifty titles comprising the United States Code of Federal Regulations (CFR), containing the principal set of rules and regulations issued by federal agencies regarding administrative personnel. It ...
*
United States federal budget The United States budget comprises the spending and revenues of the U.S. federal government. The budget is the financial representation of the priorities of the government, reflecting historical debates and competing economic philosophies. Th ...
*
Office of Federal Financial Management The Office of Federal Financial Management (OFFM) is a component of the United States Office of Management and Budget (OMB), which is part of the Executive Office of the President of the United States The Executive Office of the President (EO ...
*
Office of Federal Procurement Policy The Office of Federal Procurement Policy (OFPP) is a component of the United States Office of Management and Budget (OMB), which is part of the Executive Office of the President of the United States (EOP). OFPP provides overall direction for gover ...
*
Government procurement in the United States The processes of government procurement in the United States enable federal, state and local government bodies in the country to acquire goods, services (including construction), and interests in real property. In fiscal year 2019, the US Federal ...
*
Office of E-Government & Information Technology The Office of E-Government & Information Technology, also called the E-Gov office or the Office of the Federal CIO (OFCIO), develops and guides the U.S. federal government's use of Internet-based technologies for the public to interact with the gov ...
* Office of Information and Regulatory Affairs * Data.gov * USAFacts


Notes


References


External links

*
Office of Management and Budget
in the Federal Register
Budget of the United States government
and supplements, 1923–present
Death and Taxes: 2009
A visual guide and infographic of the 2009 United States federal discretionary budget request as prepared by OMB
"The Decision Makers: Office of Management and Budget" GovExec.com, August 22, 2005
{{DEFAULTSORT:Office Of Management And Budget United States Office of Management and Budget Management and budget United States administrative law United States federal budgets Cabinet of the United States Government agencies established in 1970