The Federal Bureaucracy
The Roots of Bureaucracy
 Foreign Affairs (State), War (Defense), Treasury first departments
 Growth in early 1800s with Post Office
 Patronage and the spoils system become common
 Civil War spawns another expansion
 Pendleton Act is beginning of civil service system
 Also known as merit system
 Creation of independent regulatory commissions
Growth of the Bureaucracy
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Modern Bureaucracy
 More than 2.7 million civilian employees
 Most (90%) are selected based on merit
 Also have high-level appointees
 Wide variety of skills represented
 Less diverse than American population
 Scattered throughout D.C. and regional offices
 Growth of outside contractors
The Federal Bureaucracy TODAY
• The New Deal DOUBLED the size of the federal work force, and
continued to expand during the Cold War years (once created, agencies rarely go away)
• Currently close to 4.3 million people work for the federal government
– 2.7 million directly for exec. Branch, 1.6 mil for armed forces, and 64,000 judiciary
• 2,200 presidential appointments (jobs are often obtained through patronage)
• 15 executive departments, headed by presidential appointees
• 180 independent agencies, boards, and commissions whose heads are
presidential appointees
Examples: EPA Environmental Protection Agency
NASA National Aeronautics and Space Administration
CIA Central Intelligence Agency
USAID U.S. Agency for International Development
The Peace Corps
• The are a number of government corporations directly serving the public
Examples:
FDIC Federal Deposit Insurance Corporation
USPS United States Postal Service
TVA Tennessee Valley Administration
The Civil Service System Today
• Applicant for federal jobs are
evaluated on the basis of their
experience and training
• Office of Personnel Management
[OPM] administers recruitment,
pay, retirement, and exams
• Government jobs are attractive
because they offer many benefits:
- job security
- competitive salaries
- 13-26 days of paid vacations
- sound pensions
Civilian Employment
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Government Employee Pay
The General Schedule (GS) is a worldwide pay system that covers more than 1.5
million employees.
The GS pay schedule has 15 grades and 10 steps in each grade covering more than
400 occupations. Pay varies by geographic location.
The law requires a two-part GS pay adjustment in January each year with pay
adjustments based on surveys conducted by the U.S. Bureau of Labor Statistics (BLS).
Based on legal requirements, BLS conducts locality pay surveys in 34 separate
geographic areas, with survey data representing non-Federal salaries (including State
and local) at distinct levels of work.
Since a distinct work-level to work-level pay comparison is required, beginning pay
rates for GS jobs must be compared to beginning pay rates for non-Federal jobs at the
same level of work, etc.
When OPM compared Federal pay with BLS data for non-Federal pay at the same
levels of work, OPM found, for all locality pay areas, non-Federal pay was 26 percent
ahead of Federal pay as of March 2011. (Pay gaps for other years can be found in the
"Pay Disparities and Comparability Payments" sections of annual Pay Agent reports.)
Federal Workforce by Gender and Race
Federal Workforce by State
Formal Organization
 Cabinet departments handle broad, lasting issues
 Headed by secretaries
 Government corporations act like businesses
 Independent executive agencies handle services
 Narrower than Cabinet department, independent
 Independent regulatory commissions watch industry
 Designed to be free from partisan pressure
Government Workers and Politics
 Hatch Act sets first boundaries
 Federal Employees Political Act is current standard
FEPA
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Characteristics of Bureaucracy
 Chain of command from top to bottom
 Division of labor
 Clear lines of authority
 Goal orientation
 Merit system
 Productivity
How the Bureaucracy Works
 Congress creates agencies
 Main job is implementation of laws
 Policy made in iron triangles or issue networks
 Increasing use of interagency councils
An Iron Triangle
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The Influence of Client Groups
• Federal agencies have “client groups” that try to influence decisions
• The close cooperation between congressional committees, client
groups, and a federal agency or department is referred to as…
“IRON TRIANGLES”
Executive Department
Ex: Dept of Veterans’ Affairs
Interest Group or Organization
The American Legion
Congressional committees
Ex: Armed Services Committee
Making Policy
 Administrative discretion allows a lot of latitude
 Rule-making is a quasi-legislative process
 Formal procedure for making regulations
 Administrative adjudication is quasi-judicial process
 Used to settle disputes between two parties
Agency Accountability
 Often unclear who agencies should be accountable to
 Civil servants are not directly accountable to American people
 Presidents try to make the right appointments
 Can also shape policy through executive orders
 Congress can use oversight powers and funding
 Police patrol v. fire alarm oversight
 Judiciary can review regulations
Agency Accountability

Example W2
Historical Taxing Categories
Historical Spending Categories
Did you try the budget
Challenge?
• http://www.federalbudgetchallenge.org/pa
ges/overview
• What did you think?
Homework: More on the
Executive Cabinets
• 15 Question Quiz next Class!
More on the Executive Departments
[The Cabinet]
The US Constitution mentions nothing about a Cabinet of advisors. This tradition, started by George
Washington, has evolved over time, expanding in size from 4 members to 15 since Washington’s presidency.
Selecting the Cabinet
Numerous factors are considered when selecting members of the cabinet.
• Does their background experience suit their post?
• Do they have high-level administrative experience?
• Do they bring geographical balance to the cabinet?
• Will they satisfy interest groups?
• Do they bring ethnic, racial, or gender balance to the cabinet?
[Cabinets have been very diverse since the Clinton Years… he wanted his Cabinet to “look like America.”]
The Executive Branch

The Role of the Cabinet
• Cabinet secretaries are the heads of the 15 executive departments
• The role of the Cabinet has always been determined by the President
• Certain cabinet members form the “inner cabinet,” who can greatly
influence the president’s decisions on matters related to their
departments’ areas of interest
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Secretary of State
Secretary of Defense
Secretary of Treasury
Attorney General
Department of State
(1789)
Hillary Clinton,
Secretary of State
• Responsible for the nation’s
overall foreign policy
• Protects U.S. citizens abroad
• Oversees embassies (and
staffs them)
• Analyzes American interests in
other nations
Department of Defense
(1789)
Robert Gates,
Secretary of Defense
• Protects the security of the
U.S.
• Oversees the armed forces
and the Joint Chiefs of Staff
• Largest department in the
Executive Branch with
nearly 2 million employees
Treasury Department
(1789)
Timothy Geithner,
Treasury Secretary
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Manages the nation’s
monetary resources
The Mint manufactures coins
The Bureau of Printing &
Engraving produces paper
money
IRS collects taxes
ATF regulates production and
distribution of alcohol and
tobacco and administers
explosives and firearms laws
Department of the Interior
(1849)
Ken Salazar,
Interior Secretary
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Protects public lands and natural
resources
Operates hydroelectric power plants
Oversees relations with American
Indians; helps them manage their affairs
Oversees the mining of natural resources
National Park Service manages national
parks and monuments, historic sites,
wildlife refuges, and recreational areas
Department of Justice
(1870)
Eric Holder,
Attorney General
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Office of the Attorney General est. 1789
Oversees the nation’s legal affairs;
represents the U.S. in court
Provides legal advice to the President
Enforces anti-trust and
civil rights laws
FBI (Federal Bureau of Investigation)
DEA (Drug Enforcement Agency)
Operates federal prisons
Department of Agriculture
(1889)
Tom Vilsack,
USDA Secretary
• Helps farmers and ranchers
improve their incomes and
expand their markets
• Provides financial credits to
farmers
• Develops conservation programs
• Safeguards the nation’s food
supply
Department of Commerce
(1903)
Gary Locke,
Secretary of Commerce
• Promotes and protects American
industry, technology, and
business interests
• Issues patents and trademarks
• Census Bureau conducts census
every 10 years
Department of Labor
(1913)
Hilda Solis,
Labor Secretary
• Protects American workers by ensuring
safe working conditions, safeguarding the
minimum wage
• Bureau of Labor and Statistics analyzes
data on employment, wages, and
compensation
• Encourages cooperation between labor
and management
• Administers unemployment insurance and
workers’ compensation programs
Department of Housing and
Urban Development (1965)
Shaun Donovan
HUD Secretary
• Helps preserve the nation’s
communities
• Ensures equal housing opportunities
and fair housing laws
• Helps make mortgages available for
more people to buy homes
• Operates public housing programs
Department of
Transportation
(1966)
Ray LaHood,
DOT Secretary
• Regulates all aspects of American
transportation needs, policy
development, and planning
• Regulates aviation, railroads,
highways, waterways, mass
transit, and oil and gas pipelines
Department of Energy
(1977)
Steven Chu,
Energy Secretary
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Promotes production of renewable energy,
fossil fuels, and nuclear energy
Researches and develops energy technology
Conducts nuclear weapons research and
production
Transmits and sells hydroelectric power
Sets rate for interstate transmission of natural
gas and electricity
Department of Health and
Human Services (1979)
Kathleen Sebelius,
HHS Secretary
• Created in 1953 as part of Health, Welfare, and Education
• Funds health care research programs
• Social Security Administration aids seniors and welfare
recipients
• Manages Medicare and Medicaid programs
• FDA (Food and Drug Administration) ensures the safety of
food and drugs and approves new treatment of disease;
enforces pure food and drug laws
• CDC (Center for Disease Control)
• NIH (National Institutes of Health)
Department of Education
(1979)
Arne Duncan,
Secretary of Education
• Coordinates federal assistance programs
for public and private schools
• Conducts educational research
• Oversees programs for LEP students
(ESL/HILT)
• Oversees programs for students with
disabilities
Department of Veterans’ Affairs (1989)
• Administers hospitals and
various educational programs to
benefit veterans and their
families
• Administers benefits and
pensions to veterans of the
armed forces
• Oversees military cemeteries
Gen. Eric Shinseki,
VA Secretary
Department of Homeland Security (2002)
Janet Napolitano,
Secretary of Homeland Security
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Prevents, prepares for, and protects against terrorist
attacks on American soil
Oversees border and transportation security
Oversees emergency preparedness and response
Provides information analysis and infrastructure
protection
When created, independent agencies and
organizations from other cabinet departments were
transferred to Homeland Security:
- Secret Service from Treasury Dept
- Coast Guard from Transportation Dept
- INS from Justice Dept
- FEMA
Executive Office of the President
(EOP )
Established in 1939, the EOP has
grown rapidly because…
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Presidents keep adding new
agencies to it
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Presidents want experts nearby to
advise them about issues
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Huge federal programs require
agencies to coordinate efforts of
executive departments and agencies
working together
Executive Office of the President
(EOP )
Office of Management and Budget [OMB]
- the largest EOP agency
- prepares the national budget that the President sends to Congress
each year
National Security Council [NSC]
- advises the President on security matters
- helps coordinate the nation’s military and
foreign policy
Council of Economic Advisors
- helps the President formulate the nation’s economic policy
Other EOP offices:
Office of the Vice President
Office of the US Trade Representative
Office of national Drug Control Policy
Office of Science and Technology
Council on Environmental Quality
Office of Faith-Based and Community Initiatives
Ret. General James Jones
National Security Advisor
Executive Office of the President (EOP )
The White House Office
- staff performs whatever duties
are need by the President
Rahm Emmanuel
White House Chief of Staff
- gathers information and provides
advice on key issues
- ensures that Exec. Departments
and agencies carry out directives
from the President
- present the President’s views to
the outside world
Robert Gibbs
Press Secretary
FEC
In 1975, Congress created the Federal Election
Commission (FEC) to administer and enforce
the Federal Election Campaign Act (FECA) - the
statute that governs the financing of federal
elections.
The duties of the FEC, which is an independent
regulatory agency, are to disclose campaign
finance information, to enforce the provisions of
the law such as the limits and prohibitions on
contributions, and to oversee the public funding
of Presidential elections.
US Trade Representative
The Office of the U.S. Trade Representative is responsible for
developing and coordinating U.S. international trade,
commodity, and direct investment policy, and overseeing
negotiations with other countries.
The head of USTR is the U.S. Trade Representative, a
Cabinet member who serves as the president’s principal
trade advisor, negotiator, and spokesperson on trade issues.
USTR provides trade policy leadership and negotiating
expertise promoting the administrations trade policy to open
markets throughout the world to create new opportunities and
higher living standards for families, farmers, manufacturers,
workers, consumers, and businesses.
How the Bureaucracy
Influences Public Policy
• Carries out policy decisions made
by the President and Congress
• Often determines what the law
means by the rules and regulations
it issues
• Shapes public policy by helping
Congress draft new laws or by
providing ideas for new legislation
• Supplies advice and information to
top decision-makers