Office of Management and Budget

Definition

The Office of Management and Budget (OMB) is a federal agency within the Executive Office of the President of the United States. It is responsible for overseeing the administration's performance, developing the federal budget, and setting funding priorities across government agencies.

5 Must Know Facts For Your Next Test

1. The OMB plays a key role in controlling the bureaucracy by overseeing the implementation of presidential priorities and policies across federal agencies.
2. The OMB reviews and approves agency budget requests before they are included in the president's annual budget proposal to Congress.
3. The OMB also issues guidance and regulations that shape how federal agencies operate, including on issues such as procurement, information technology, and performance management.
4. The OMB director, who is appointed by the president, serves as a powerful gatekeeper, determining which agency initiatives and priorities are included in the president's budget.
5. The OMB's Office of Information and Regulatory Affairs (OIRA) reviews and approves all significant federal regulations, giving the president significant influence over the regulatory process.

Review Questions

• Explain the role of the Office of Management and Budget in controlling the bureaucracy.
  • The Office of Management and Budget (OMB) plays a central role in controlling the federal bureaucracy by overseeing the implementation of presidential priorities and policies across government agencies. The OMB reviews and approves agency budget requests before they are included in the president's annual budget proposal to Congress, giving the president significant influence over agency funding and priorities. Additionally, the OMB issues guidance and regulations that shape how federal agencies operate, including on issues such as procurement, information technology, and performance management. The OMB director, who is appointed by the president, serves as a powerful gatekeeper, determining which agency initiatives and priorities are included in the president's budget.
• Describe how the OMB's Office of Information and Regulatory Affairs (OIRA) influences the regulatory process.
  • The OMB's Office of Information and Regulatory Affairs (OIRA) reviews and approves all significant federal regulations, giving the president significant influence over the regulatory process. OIRA's review of proposed regulations allows the OMB to shape the content and timing of new rules, ensuring they align with the president's policy priorities. This regulatory oversight power grants the OMB a significant degree of control over the bureaucracy, as it can delay, modify, or even block regulations that are not favored by the administration.
• Analyze how the OMB's budgetary authority allows the president to exert control over federal agencies.
  • The OMB's authority to review and approve agency budget requests before they are included in the president's annual budget proposal to Congress gives the president significant leverage over federal agencies. By controlling the funding allocated to different agencies and programs, the OMB can incentivize agencies to prioritize the president's policy goals and initiatives. This budgetary power allows the president, through the OMB, to shape the priorities and activities of the federal bureaucracy, ensuring that government agencies are responsive to the administration's policy agenda. The OMB's budgetary oversight serves as a key mechanism for the president to exercise control over the vast federal bureaucracy.

Related terms

Executive Office of the President: The Executive Office of the President (EOP) is a collection of agencies and offices that support the work of the President of the United States.

Federal Budget: The federal budget is the annual financial plan for the United States government, outlining projected revenues and expenditures for the upcoming fiscal year.

Government Agencies: Government agencies are departments, administrations, or other organizations that are part of the executive branch of the federal government.