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Louis Jacobson
By Louis Jacobson October 21, 2016

Idea to create a secretary of business finally runs out of steam

President Barack Obama's dream of consolidating nine government agencies that deal with commerce into a single federal department appears to be dead.

During the 2012 campaign, Obama said he wants to "consolidate a whole bunch of government agencies. We should have one secretary of business."

Initially, Obama made some progress. In January 2013, he announced his proposal, seeking greater authority from Congress to allow reorganization of the government, starting with a consolidation of business agencies into "one more efficient department to promote competitiveness, exports and American business."

In his proposed budget, he specified that  "the new department would include the Department of Commerce's core business and trade functions, the Small Business Administration, the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corporation, and the U.S. Trade and Development Agency."

Then, on July 8, 2013, Obama held a public event at the White House to promote his agenda on government reorganization. "We're doing a lot of this work administratively, but unfortunately there are still a bunch of rules, a lot of legislation that has poorly designed some of our agencies and forces folks to engage in hoop jumping," he said.

Obama argued that "every president from Herbert Hoover to Ronald Reagan had this authority to redesign the federal government, the executive branch, to deliver services better -- just like every business owner seeking to make sure that his or her company keep pace with the times. Currently, we do not have that capacity."

Since we last rated this promise in August 2013, the Obama administration continued to push the idea.

Obama included a similar proposal in his fiscal year 2016 and 2017 budget proposals. "The president is again asking the Congress to revive an authority that presidents had for almost the entire period from 1932 through 1984—the ability to submit proposals to reorganize the executive branch through a fast-track procedure," Obama's 2017 proposal said, arguing that "consolidating business and trade promotion into a single department would enhance government productivity and effectiveness."

One GOP lawmaker, Sen. Richard Burr, R-N.C, gave Obama a modicum of bipartisan cover, saying he hoped to work with Democrats "to advance the sensible goal of reducing spending and making government more effective by consolidating duplicative government activities," according to Government Executive magazine.

By and large, though, partisan polarization and a crisis-to-crisis approach in Congress meant that Obama was unable to gain traction for the idea with Republican congressional leaders. And now, time has essentially run out. We rate this a Promise Broken.

Our Sources

Barack Obama, remarks by the president presenting a new management agenda, July 08, 2013

White House, "Government Reorganization Fact Sheet," Jan. 13, 2012

White House, president's budget for fiscal year 2014 ("Creating a 21st Century Government"), accessed Aug. 8, 2013

White House, "President Obama Announces proposal to reform, reorganize and consolidate Government,"  Jan. 13, 2012

Government Executive, "Obama Revives Agency Consolidation Proposal," Feb. 2, 2015

Barack Obama, fiscal 2017 president's budget proposal, accessed Oct. 19, 2016

Louis Jacobson
By Louis Jacobson August 8, 2013

President is asking Congress for powers to reorganize agencies

It may not be one of President Barack Obama's highest-profile presidential promises, but he hasn't let go of his idea to consolidate nine government agencies that deal with commerce into a single federal department.

During the 2012 campaign, Obama said he wants to "consolidate a whole bunch of government agencies. We should have one secretary of business.”

Since his re-election, Obama has continued to push the idea. In January 2013, he announced his proposal, seeking greater authority from Congress to allow reorganize the government, starting with a consolidation of business agencies into "one more efficient department to promote competitiveness, exports and American business.”

He repeated the call in his proposed budget, specifying that  "the new department would include the Department of Commerce's core business and trade functions, the Small Business Administration, the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corporation, and the U.S. Trade and Development Agency.

"It would also incorporate related programs from a number of other departments, including the Department of Agriculture's business development programs, the Department of the Treasury's Community Development Financial Institutions Fund program, the National Science Foundation's statistical agency and industry partnership programs, and the Bureau of Labor Statistics from the Department of Labor.”

In the meantime, the National Oceanic and Atmospheric Administration would be moved from the Commerce Department to the Interior Department.

As recently as July 8, Obama held a public event at the White House to promote his agenda on government reorganization. "We're doing a lot of this work administratively, but unfortunately there are still a bunch of rules, a lot of legislation that has poorly designed some of our agencies and forces folks to engage in hoop jumping,” he said.

Obama argued that "every president from Herbert Hoover to Ronald Reagan had this authority to redesign the federal government, the executive branch, to deliver services better -- just like every business owner seeking to make sure that his or her company keep pace with the times. Currently, we do not have that capacity.”

Obama's proposal can't happen without cooperation from Congress, and he's had a difficult time getting his agenda through the Republican-controlled House. So this is hardly a fait accompli. Still, Obama has created a specific proposal and has held a public event to promote it. This is enough to move it to In the Works.

Our Sources

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