PBU - Federal Bureaucracy Lesson

Federal Bureaucracy

The federal bureaucracy is the broad name given to all the agencies, commissions and departments that carry out the responsibilities assigned to them through Congressional legislation.

The are five types of organizations in the federal bureaucracy:

    1. Cabinet departments
    2. Independent executive agencies
    3. Independent regulatory agencies
    4. Government corporations
    5. Presidential commissions

Regulatory Agency

In the United States federal government, Congress and the President have the ability to delegate authority to independent executive agencies, sometimes called federal agencies or administrative agencies. These agencies are distinct from executive departments because they have some degree of independence from the President. Even though the president appoints them, agency leadership is non-partisan, or independent from Presidential politics and election turn over.

The leaders of agencies often participate as members of commissions, boards, or councils with internal structures resembling tripartite government. That is, a single agency may "legislate" by producing regulations; "adjudicate" by resolving disputes between parties; and "enforce" by penalizing regulation violations. Roll your mouse over the following icons to learn more about each independent executive agency.

Federal Communications CommisionCentral Intelligence AgencyNASAEnvironmental Protection Agency

The U.S. Constitution does not explicitly reference federal agencies. Instead, these agencies are generally justified by acts of Congress designed to manage delineated government functions, such as the maintenance of infrastructure and regulation of commerce. Congress passes statutes called enabling acts that define the scope of agencies' authority. Once created, agencies are considered part of the executive branch of government and are partly regulated by government parties. However, executive agencies have to remain nonpartisan.

Government Corporations

A government-owned corporation, also known as a state-owned company, state enterprise, publicly owned corporation, or commercial government agency, is a legal entity created by a government to undertake commercial activities on behalf of the government. In some cases, government-owned corporations are considered part of the government, and are directly controlled by it. In other instances, government-owned corporations are similar to private enterprises except that the government is the majority stockholder. Government-owned agencies sometimes have public policy functions, but unlike other executive agencies, are primarily intended to bring in revenue.

In the United States, there is a specific subset of government-owned corporations known as government-sponsored enterprises (GSEs). GSEs are financial services corporations created by Congress to increase the availability of low cost credit to particular borrowing sectors. The first GSE in the United States was the Farm Credit System in 1916, which made loans available for agricultural expansion and development. Currently, the largest segment of GSEs operates in the mortgage borrowing segment. Fannie Mae, Freddie Mac, and the twelve Federal Home Loan Banks operate as independent corporations and provide loans for mortgages and real estate development. However, the government possesses sufficient stock to claim 79.9% ownership of the corporations, should it choose to do so. In addition to the financial sector GSEs, the U.S. government has chartered corporations that are legally distinct from the government (unlike federal agencies) but that provide public services. These chartered corporations sometimes receive money from the federal government, but are largely responsible for generating their own revenue. Corporations in this category include the Corporation for Public Broadcasting, the National Fish and Wildlife Foundation, The National Park Foundation, and many others.

Lastly, the government sometimes controls government acquired corporations, corporations that were not chartered or created by the government, but which it comes to possess and operate. These corporations are usually controlled by the government only temporarily, often as the result of government seizure due to unpaid debts. For example, a delinquent taxpayer's property may be repossessed by the government. Government acquired corporations are generally sold at auction or returned to the original controller once debts are repaid.

Growth of Bureaucracy

The largest growth of federal bureaucracy was during FDR's New Deal. Many new agencies were created to administer his many programs. Civil Service has undergone several transitions. Prior the 1820s, appointments to most executive branch offices were chosen by the President. Andrew Jackson created the spoils system in which party loyalty replaced talent for these government positions. Eventually there was a call for civil service reform, which led to the Pendleton Act of 1881. This was the beginning of the merit system which used an exam to determine competitive federal employees. The Hatch Act of 1939, prohibited federal employees from running for office. The Civil Service Commission acts as a central agency for recruiting, examining, and appointing federal workers.

The concept of the welfare state emerged during FDR's administration. Our government provides citizens with services that increase their security and welfare as an individual. Under LBJ's administration, the Great Society increased these services even more. Some examples of welfare agencies include: Social Security Administration, the Securities and Exchange Commission, the Tennessee Valley Authority, the Federal Trade Commission, and the Federal Deposit Insurance Corporation, which promote economic security and welfare.

Occasionally complaints regarding the size of bureaucracy results in reorganization. This is usually to reduce government costs and make the Presidency more efficient. Some believe private enterprise could make certain programs less expensive and more efficient. This is known as privatization. Deregulation reduces the role of the federal government and gives a greater amount of freedom to the industry. As a result of privatization and degregulation, the size of the federal bureaucracy is reduced.

The Office of Management and Budget (OMB) formulates and executes the federal budget. The President can control the expenditures of the executive branch, however Congress can override these decisions.

Relations With Other Branches

The federal bureaucracy is linked to the president by appointment and direction and to the Congress through oversight. Agency operations are highly publicized through the media when they have an impact on the public.

Interest groups and public opinion try to influence the actions of the agencies.

Foreign Policy

The President can take action when America or her allies are threatened. Through the role of Commander in Chief, the president has the power to make war. The President can recognize (or not) a country and develop diplomatic relations with that country.

The President also has the power to make treaties. For the treaty to become law, the Senate must approve it by 2/3 majority vote. An executive agreement is a pact between the leaders of foreign countries and the President. This type of agreement does not require consent of Senate, but does have to go through the same process as a bill does to become a law.

 

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