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The federal bureaucracy is composed of the president's Cabinet, federal agencies, and governmental corporations. Nearly all of the bureaucracy is part of the executive branch. The Constitution says very little about how the executive branch should be organized to carry out the orders of the president, the laws of Congress, and the general administration of government. The responsibility for defining the organization and operation of the executive branch fell to the nation's first presidents and Congresses.
In 1789, Congress ordered the creation of the first three departments of the Cabinet: the Departments of State, Treasury, and War. Over time, 12 more departments have been added, including the newest—the Department of Homeland Security. The head of a department is called a secretary with the exception of the Justice Department, which is headed by the Attorney General. The president chooses each department head, who must also be confirmed by the Senate. The secretaries not only run their departments but also serve in an advisory capacity directly to the president.
In addition to the departments, there are nearly 150 independent agencies that report to the White House. These include the CIA, the Federal Reserve, NASA, and the Social Security Administration. About 10 percent of the people employed by federal agencies work in the nation's capital. The Social Security Administration is the largest and most heavily funded federal agency.
Federal agencies fall into one of two categories, regulatory or executive. A regulatory agency watches over a particular sector of the economy or national interest. The Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), and the Securities and Exchange Commission (SEC) are examples of regulatory agencies. They are each governed by a commission of 10 to 15 members who are appointed by the president and confirmed by the Senate.
Regulatory agencies often have quasi-legislative, executive, and judicial powers. That is, they have been empowered by Congress to make rules and regulations to enforce the laws passed by Congress, and they may develop investigative and punitive procedures to employ against those persons who break these rules and regulations. In effect, they function as small governments within their own sphere of influence, but they are not directly accountable to the people through election. In many cases, regulatory agencies are only nominally accountable to the president. This situation has raised serious questions concerning the constitutionality of some agencies.
Executive agencies carry out vital national functions and interests that are not part of the cabinet. The heads of these agencies are appointed by the president and approved by the Senate. The Central Intelligence Agency (CIA) and the National Aeronautical and Space Administration (NASA) are examples of executive agencies.
Besides departments and agencies, the federal government has formed government corporations that act as businesses to produce a product or service. The United States Post Office, Tennessee Valley Authority (TVA), Amtrak, and Federal Deposit Insurance Corporation (FDIC) are all examples of federal corporations.
The White House itself is a large organization called the Executive Office of the President. This includes the White House Office and a number of other offices and councils that advise the president on matters of policy. Among them are the National Security Council (NSC), the Office of Management and Budget (OMB), and the Council of Economic Advisors (CEA).
Copyright 2006 The Regents of the University of California and Monterey Institute for Technology and Education