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Federal Agency Reorganization Plan for $4.55 Billion Savings

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Federal Agency Reorganization (FAR) 

Comprehensive cost savings of $4.55 billion annually

Executive Summary

The President has directed the establishment of the Federal Agency Reorganization (FAR) Task Force within the Department of Government Efficiency (DOGE) to streamline the federal government, excluding the Department of Defense, enhance service delivery to citizens, and achieve significant cost savings of $4.55 billion annually to reduce the federal budget deficit and begin paying down the national debt. The Task Force will categorize approximately 450 federal agencies as essential or non-essential based on their roles during government shutdowns and direct service impact. Essential agencies will be maintained for critical services; non-essential agencies will be evaluated for deletion or state delegation.

Proposed deletions include: the Economic Research Service (ERS, 250 employees, $36 million annual savings), Energy Information Administration (EIA, 400 employees, $57.6 million annual savings), and National Institute of Food and Agriculture (NIFA, 399 employees, $57.46 million annual savings), totaling $151.06 million in annual savings and a reduction of 1,049 employees.

Agencies proposed for state management via block grants include the Office of Public and Indian Housing (PIH, 1,500 employees, $216 million annual savings), Natural Resources Conservation Service (NRCS, 10,009 employees, $1.441 billion annual savings), and Agricultural Research Service (ARS, 6,092 employees, $877.25 million annual savings), totaling $2.534 billion in annual savings and a reduction of 17,601 employees.

Combined cost savings of $4.555 billion annually include personnel ($2.238 billion), operational costs ($447 million), buildings ($186.5 million), equipment ($93.25 million), administrative functions ($223.8 million), programmatic funding ($850 million), contracts ($268.5 million), pensions ($111.9 million), utilities ($37.3 million), travel/training ($37.3 million), shared services ($18.65 million), and annualized asset sales ($41.96 million).

The Task Force will also develop private sector incentives under the Federal Agency Reorganization (FAR), such as research tax credits, accelerated depreciation, and performance bonuses (estimated at $2.25 million annually), to enhance essential service delivery and reduce costs. An interim report is due in 90 days, outlining categorizations and initial proposals, followed by a final report in 180 days with a comprehensive implementation plan. This initiative aligns with President Trump’s 2025 executive orders (e.g., EO 14210, EO 14158) for workforce optimization and efficiency, aiming to eliminate redundancies, cut non-essential services, and redirect savings to fiscal responsibility.

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Comprehensive Implementation Plan

Introduction
This plan outlines the steps to execute the Federal Agency Reorganization (FAR), excluding the Department of Defense, as directed by the President’s executive order. It focuses on categorizing agencies, deleting low-impact entities, shifting responsibilities to states via block grants, incentivizing private sector involvement, and achieving cost savings of $4.55 billion annually to reduce the federal budget deficit and improve service delivery.

Step 1: Agency Categorization

Step 2: Identify Agencies for Deletion

Step 3: Propose Shifting Agencies to States

Step 4: Develop Private Sector Incentives

Step 5: Draft and Submit Reports

Step 6: Implement the Federal Agency Reorganization (FAR)

Conclusion
The Federal Agency Reorganization (FAR) reduces the federal workforce by 18,650 employees and saves $4.5 billion annually, aligning with President Trump’s efficiency goals (EO 14210, EO 14158). It eliminates redundancies, shifts non-essential services to states, and enhances essential service delivery through private sector innovation, supporting fiscal responsibility and improved citizen outcomes.

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DRAFT (Recommended) 

Presidential Executive Order [Suggested]

By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to enhance the efficiency and effectiveness of the federal government, it is hereby ordered as follows:

Section 1. Establishment of the Federal Agency Reorganization (FAR) Task Force
(a) There is established a task force within the Department of Government Efficiency (DOGE), to be known as the Federal Agency Reorganization (FAR) Task Force (Task Force).
(b) The Task Force shall be composed of:
(i) The Director of the Office of Management and Budget (Chair);
(ii) The Attorney General;
(iii) The Director of the Office of Personnel Management;
(iv) The Secretary of the Treasury;
(v) The heads of such other executive departments and agencies as the Chair may designate, excluding the Department of Defense.
(c) The Task Force shall:
(i) Review and categorize all federal agencies, excluding the Department of Defense, as essential or non-essential based on their role during government shutdowns and their direct impact on citizen services, utilizing historical data from shutdowns such as 1995–1996, 2013, and 2018–2019.
(ii) Identify agencies with low return on investment (ROI) for deletion, specifically:

Section 2. Private Sector Incentives
(a) The Task Force shall recommend mechanisms to incentivize private sector partnerships with essential agencies under the Federal Agency Reorganization (FAR), including:
(i) Research tax credits for companies enhancing service delivery (e.g., healthcare technology for HHS);
(ii) Accelerated depreciation for investments improving efficiency (e.g., IT systems for SSA);
(iii) Performance bonuses (10% of cost savings) for contractors completing projects under budget and on schedule.
(b) These incentives aim to reduce government costs and improve citizen services, with an estimated annual investment of $2.25 million in awards.

Section 3. Reporting
(a) The Task Force shall submit an interim report to the President within 90 days, detailing agency categorizations and initial proposals for deletions and shifts under the Federal Agency Reorganization (FAR).
(b) The Task Force shall submit a final report within 180 days, including the comprehensive implementation plan and cost savings of $4.55 billion annually.

Section 4. General Provisions
(a) Nothing in this order shall be construed to impair or otherwise affect:
(i) The authority granted by law to an executive department or agency, or the head thereof, excluding the Department of Defense; or
(ii) The functions of the Director of the Office of Management and Budget relating to budget, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE,
February 25, 2025.
[Signature of the President]

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