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Revises the federal reorganization rules in Title 5 by replacing the term “agency/ies” with a new defined term “executive department,” adding explicit goals for reorganization plans (including reducing federal personnel and eliminating unnecessary rules), updating procedural language, prohibiting reorganization actions that create net increases in federal employees or net increases in spending, and extending two statutory deadlines from 1984 to December 31, 2026. The amendment is textual and directs how executive departments must frame and justify reorganization proposals going forward.
Amend section 901(a): modify paragraph (3) (insert before semicolon); in paragraph (5) strike each occurrence of the term and insert “executive departments” and remove the terminal “and”; change paragraph (6) period to a semicolon; and add new paragraphs (7)–(9) setting additional purposes for reorganization plans: (7) to reduce the number of federal employees; (8) to amend rules, regulations, and other requirements to decrease cost and difficulty of compliance and eliminate unnecessary/burdensome requirements; and (9) to eliminate government operations that do not serve the public interest. Also in subsection (d) strike “agencies” and insert “executive departments.” Statutory reference: section 901 of title 5.
Replace section 902 paragraph (1) with a new definition of “executive department” that (A) means (i) any executive department, agency, or independent establishment of the United States or any corporation wholly owned by the United States; and (ii) an office or officer of the executive branch; and (B) expressly excludes the Government Accountability Office and the Comptroller General of the United States. Statutory reference: section 902 of title 5.
Amend section 903(a): in the introductory matter before paragraph (1) replace “agencies” with “executive departments”; strike and replace each later occurrence of the term with “executive department”; and strike the semicolon in paragraph (2) as shown. Statutory reference: section 903(a) of title 5.
Amend section 904: in each place the term appears, strike the term and insert “executive department.” Statutory reference: section 904 of title 5.
Amend section 905(a): (i) strike paragraph (1); (ii) redesignate paragraphs (2)–(7) as paragraphs (1)–(6), respectively; (iii) in the redesignated paragraphs (1), (2), and (3) strike the term where it appears and insert “executive department”; (iv) in redesignated paragraph (4) strike “new agency” and insert “new executive department”; (v) in redesignated paragraph (5) perform the strike indicated in the text; (vi) in redesignated paragraph (6) replace the period with the indicated punctuation; and (vii) add a new paragraph (7) at the end stating “creating a net increase in the number of federal workers or a net increase in expenditures.” Statutory reference: section 905(a) of title 5.
Who is affected and how:
Executive departments (Cabinet-level entities and other bodies captured by the new definition): directly affected because the chapter’s rules, terminology, and required goals now apply to them; reorganization plans they prepare must use the new definition and meet the newly stated goals and prohibitions.
Heads of Federal departments and agencies: will need to certify and lead reorganization efforts under the revised statutory language and constraints; senior leaders will be accountable for meeting statutory goals while avoiding prohibited net increases in staff or spending.
Federal employees and workforce patterns: potentially affected because the statute now directs reorganization plans to seek staff reductions and bans plans that result in net increases in employees; this may change how agencies design restructurings, staffing requests, or program consolidations.
Congressional oversight bodies (relevant committees): affected because the content and timing of reorganization submissions and the legal framework for review are altered; extended deadlines may change oversight windows.
Office of Management and Budget, counsel offices, and other administrative offices: will be responsible for implementing the textual changes, advising agencies on compliance with the new goals and prohibitions, and updating internal guidance.
Broader effects and implementation considerations:
Operational constraints: The prohibition on net increases in employees or spending may limit the ability of departments to propose reorganizations that require short-term growth to achieve long-term efficiencies, or to stand up new mission needs that require additional staffing or funding.
Legal and interpretive questions: Agencies and overseers will face questions about how to calculate "net increases" (e.g., across functions, timelines, or funding streams) and how to balance the new reduction goals against statutory program responsibilities.
No immediate budgetary outlays: Because the amendment changes statutory text, not appropriations, it does not itself fund or defund programs; fiscal impacts would come from future reorganizations implemented under the new standards.
Limited direct public impact: The changes are administrative and procedural rather than creating new public-facing programs or mandates; most effects will be internal to the federal executive branch and its workforce planning.
Uncertainties:
Amends 5 U.S.C. 901: replaces uses of the term "agencies" with "executive departments" in subsection (a) and subsection (d); adjusts punctuation in specified paragraphs of subsection (a); and adds new objectives as paragraphs (7)–(9) concerning reducing number of federal employees, decreasing compliance cost/burden of rules and regulations, and eliminating government operations that do not serve the public interest.
Replaces paragraph (1) of 5 U.S.C. 902 with a new definition for "executive department" that (A) expressly means any executive department, agency, or independent establishment of the United States or any corporation wholly owned by the United States, and an office or officer of the executive branch; and (B) expressly excludes the Government Accountability Office and the Comptroller General of the United States.
Amends the introductory matter and paragraph text of 5 U.S.C. 903(a) by replacing the term "agencies" with "executive departments" throughout and making a punctuation change in paragraph (2).
Amends 5 U.S.C. 904 by replacing each occurrence of the term "agencies" with "executive department."
Multiple amendments to 5 U.S.C. 905: strikes paragraph (1) of subsection (a); redesignates paragraphs (2)–(7) as (1)–(6); replaces occurrences of the term "agencies" with "executive department" in the redesignated paragraphs (1)–(3); replaces the phrase "new agency" with "new executive department" in the redesignated paragraph (4); makes specified strikes and punctuation changes; adds a new paragraph (7) prohibiting creation of a reorganization that would create a net increase in the number of federal workers or a net increase in expenditures; and in subsection (b) changes the date "December 31, 1984" to "December 31, 2026."
Amends 5 U.S.C. 907 by replacing each occurrence of the term "agencies" with "executive department."
Amends 5 U.S.C. 908 by replacing the date "December 31, 1984" with "December 31, 2026."
Amends 5 U.S.C. 909 by replacing the text "19 ." with "20 ." (a change in the numeric text as shown).
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Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced February 13, 2025 by Mike Lee · Last progress February 13, 2025
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced in Senate