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Office of Management and Budget
US-OfficeOfManagementAndBudget-Seal.svg
Russell Vought.jpg
Agency overview
Formed July 1, 1970; 54 years ago (1970-07-01)
Preceding agency
  • Bureau of the Budget
Headquarters Eisenhower Executive Office Building, Washington, D.C., U.S.
Employees 448
Annual budget $141 million (FY 2022)
Agency executive
Parent agency Executive Office of the President of the United States
Child agencies
  • Office of Information and Regulatory Affairs
  • Office of the Intellectual Property Enforcement Coordinator
  • Office of E-Government & Information Technology
  • Office of Federal Financial Management
  • Office of Federal Procurement Policy

The Office of Management and Budget (OMB) is a very important office within the Executive Office of the President of the United States (EOP). Think of it as the President's main helper for money and management.

OMB's most important job is to create the President's yearly budget plan. This plan shows how the government will spend money. OMB also checks if other government agencies are following the President's rules. It helps different agencies work together on big projects.

The current director of the OMB is Shalanda Young. She helps lead this important office.

What is the OMB?

The Office of Management and Budget (OMB) is like the President's financial and management team. It helps the President decide how the U.S. government will spend its money. It also makes sure that all the different government departments work well.

OMB helps the President make big decisions about the country's future. It checks if government programs are working as they should. It also helps decide which programs get money and which don't.

The OMB makes sure that all government reports and new rules fit with the President's plans. It also helps improve how the government buys things and handles its money.

The main goals of the OMB are:

  • To create and manage the government's budget. This budget helps the President put their plans into action. It affects everything from the military to NASA.
  • To manage the money, paperwork, and computer systems of other government agencies.

How the OMB Started

The OMB wasn't always called that. It started in 1921 as the Bureau of the Budget. It was part of the Treasury Department. President Warren G. Harding signed the law that created it.

In 1939, the Bureau of the Budget moved to the President's own office. This happened during World War II, when the government was spending a lot more money. Harold D. Smith led the bureau during this time.

In 1970, the bureau was changed and became the Office of Management and Budget. This happened when Richard Nixon was President. The first OMB team included people like Roy Ash and Paul O'Neill.

In the 1990s, the OMB changed again. It combined the jobs of managing and budgeting into one role for its staff. This made it easier to handle both money and how programs were run.

How the OMB is Organized

The OMB has many skilled people who work there for a long time. These people help keep things running smoothly, even when new Presidents are elected.

Some of the top jobs at OMB are chosen by the President. These include the Director and Deputy Directors. Other important leaders are in charge of specific areas like information, buying things, and money.

Working with Agencies

The biggest parts of OMB are its five Resource Management Offices. These offices are set up like the different parts of the government. Each office has an associate director in charge.

About half of OMB's staff work in these offices. They are called program examiners. These examiners watch over one or more government agencies. They might focus on a specific topic, like U.S. Navy ships.

These staff members handle both money and management issues. They give expert advice on all parts of their programs. Every year, they look at budget requests from federal agencies. They help decide which requests will be sent to Congress as part of the President's budget.

They also check how well programs are doing. They look at new rules and laws. They make sure agencies are following the President's plans.

Support Teams

The OMB also has other teams that help the whole office. These include:

  • The Office of General Counsel (for legal advice).
  • The Office of Legislative Affairs (for working with Congress).
  • The Budget Review Division (BRD).
  • The Legislative Reference Division.

The BRD helps put together the government's budget. It handles all the technical details for the President's budget, which comes out every February.

The Legislative Reference Division checks all proposed new laws and ideas from federal officials. It gathers opinions from different government departments. It then shares the administration's overall view on the proposal.

This division also writes a special memo to the President when a bill is ready to be signed into law. This memo explains the bill and gives opinions on whether the President should sign or veto it. It also tells Congress the White House's official stance on new laws.

How the OMB Creates the Budget

The OMB plays a key role in creating the President's yearly budget. It guides other government agencies on how to prepare their budget requests.

Creating the budget takes almost a year! Here are the steps:

  • First, the OMB tells the President about the country's economic situation.
  • Next, the OMB gives agencies instructions on what to focus on for their budget requests. They also give deadlines.
  • Then, OMB works with agencies to discuss any issues with their upcoming budgets.
  • In July, OMB sends out detailed instructions (called Circular A-11) for submitting budget proposals. Agencies send these in by September.
  • The government's new financial year starts on October 1. OMB staff meet with agency leaders. They check if the proposals match the President's goals.
  • By late November, the OMB director meets with the President. They discuss the agencies' budget ideas and recommend a final plan. Agencies are told about the decisions.
  • If agencies are unhappy, they can appeal to OMB and the President in December.
  • After fixing any issues, agencies and OMB prepare a document to explain the budget to Congress.
  • Finally, by the first Monday in February, the President must send the finished budget to Congress for approval.

OMB also helps create Statements of Administrative Policy (SAPs). These statements tell the government what the President and agencies want to achieve. OMB makes sure that new laws and agency actions fit with the President's plans.

The OMB is very powerful because it helps run the government every day. Without a budget, federal workers wouldn't get paid. Government buildings would close, and programs would stop. This can lead to a government shutdown if Congress doesn't approve a budget.

Rules and Guidelines (Circulars)

The OMB issues "circulars." These are like instructions or information guides for federal agencies. They cover many topics, such as:

  • Budget rules
  • Guidelines for state and local governments
  • Rules for schools and non-profit groups
  • How the government buys things
  • How the government manages its money and information

One important circular is Circular NO. A-119. This circular tells federal agencies to use common industry standards whenever possible. This means they should use standards that many different groups agree on, instead of creating their own government-only standards. This helps make things work better and more easily.

For example, this circular encourages agencies to use international standards.

Current Leaders

Here are some of the current leaders at the OMB:

  • Director: Shalanda Young
  • Deputy Director: Nani Coloretti
  • Chief of Staff for OMB: Rachel Wallace
  • General Counsel: Daniel Jacobson
  • Deputy Director for Management: Jason Miller
  • Administrator of the Office of E-Government and Information Technology: Clare Martorana
  • Administrator of the Office of Information and Regulatory Affairs: Ricky Revesz
  • Chief Statistician of the United States: Karin Orvis

Past Directors

Here is a list of people who have led the OMB (or its earlier version, the Bureau of the Budget) over the years:

Name Start End President Notes
Dawes, CharlesCharles Dawes June 23, 1921 June 30, 1922 Harding, Warren G.Warren G. Harding
(1921–1923)
Lord, HerbertHerbert Lord July 1, 1922 May 31, 1929
Coolidge, CalvinCalvin Coolidge
(1923–1929)
Hoover, HerbertHerbert Hoover
(1929–1933)
Roop, ClawsonClawson Roop August 15, 1929 March 3, 1933
Douglas, LewisLewis Douglas March 7, 1933 August 31, 1934 Roosevelt, Franklin D.Franklin D. Roosevelt
(1933–1945)
Bell, DanielDaniel Bell September 1, 1934 April 14, 1939
Smith, HaroldHarold Smith April 15, 1939 June 19, 1946
Truman, Harry S.Harry S. Truman
(1945–1953)
Webb, JamesJames Webb July 13, 1946 January 27, 1949
Pace, FrankFrank Pace February 1, 1949 April 12, 1950
Lawton, FredFred Lawton April 13, 1950 January 21, 1953
Dodge, JosephJoseph Dodge January 22, 1953 April 15, 1954 Eisenhower, Dwight D.Dwight D. Eisenhower
(1953–1961)
Hughes, RowlandRowland Hughes April 16, 1954 April 1, 1956
Brundage, PercivalPercival Brundage April 2, 1956 March 17, 1958
Stans, MauriceMaurice Stans March 18, 1958 January 21, 1961
Bell, DavidDavid Bell January 22, 1961 December 20, 1962 Kennedy, John F.John F. Kennedy
(1961–1963)
Gordon, KermitKermit Gordon December 28, 1962 June 1, 1965
Johnson, Lyndon B.Lyndon B. Johnson
(1963–1969)
Schultze, CharlesCharles Schultze June 1, 1965 January 28, 1968
Zwick, CharlesCharles Zwick January 29, 1968 January 21, 1969
Mayo, BobBob Mayo January 22, 1969 June 30, 1970 Nixon, RichardRichard Nixon
(1969–1974)
Shultz, GeorgeGeorge Shultz July 1, 1970 June 11, 1972
Weinberger, CasparCaspar Weinberger June 12, 1972 February 1, 1973
Ash, RoyRoy Ash February 2, 1973 February 3, 1975
Ford, GeraldGerald Ford
(1974–1977)
Lynn, JamesJames Lynn February 10, 1975 January 20, 1977
Lance, BertBert Lance January 21, 1977 September 23, 1977 Carter, JimmyJimmy Carter
(1977–1981)
McIntyre, JimJim McIntyre September 24, 1977 January 20, 1981
Stockman, DavidDavid Stockman January 21, 1981 August 1, 1985 Reagan, RonaldRonald Reagan
(1981–1989)
Miller, JimJim Miller October 8, 1985 October 15, 1988
Wright, JoeJoe Wright October 16, 1988 January 20, 1989
Darman, DickDick Darman January 25, 1989 January 20, 1993 Bush, George H. W.George H. W. Bush
(1989–1993)
Panetta, LeonLeon Panetta January 21, 1993 July 17, 1994 Clinton, BillBill Clinton
(1993–2001)
Rivlin, AliceAlice Rivlin October 17, 1994 April 26, 1996
Raines, FrankFrank Raines September 13, 1996 May 21, 1998
Lew, JackJack Lew May 21, 1998 January 19, 2001
Daniels, MitchMitch Daniels January 23, 2001 June 6, 2003 Bush, George W.George W. Bush
(2001–2009)
Bolten, JoshJosh Bolten June 6, 2003 April 15, 2006
Portman, RobRob Portman May 26, 2006 June 19, 2007
Nussle, JimJim Nussle September 4, 2007 January 20, 2009
Orszag, PeterPeter Orszag January 20, 2009 July 30, 2010 Obama, BarackBarack Obama
(2009–2017)
Zients, JeffJeff Zients
Acting
July 30, 2010 November 18, 2010
Lew, JackJack Lew November 18, 2010 January 27, 2012
Zients, JeffJeff Zients
Acting
January 27, 2012 April 24, 2013
Burwell, Sylvia MathewsSylvia Mathews Burwell April 24, 2013 June 9, 2014
Deese, BrianBrian Deese
Acting
June 9, 2014 July 28, 2014
Donovan, ShaunShaun Donovan July 28, 2014 January 20, 2017
Sandy, MarkMark Sandy
Acting
January 20, 2017 February 16, 2017 Trump, DonaldDonald Trump
(2017–2021)
Mulvaney, MickMick Mulvaney February 16, 2017
On leave: January 2, 2019 – March 31, 2020
March 31, 2020 Became Acting White House Chief of Staff on January 2, 2019, but remained OMB Director through the rest of his tenure.
Vought, RussRuss Vought January 2, 2019
Acting: January 2, 2019 – July 22, 2020
January 20, 2021 Initially Acting Director during Mulvaney's service as Acting White House Chief of Staff continued until Vought was confirmed.
Fairweather, RobRob Fairweather
Acting
January 20, 2021 March 24, 2021 Biden, JoeJoe Biden
(2021–2025)
Young, ShalandaShalanda Young March 24, 2021
Acting: March 24, 2021 – March 17, 2022
January 20, 2025 While Young was Acting Director, Jason Miller assumed duties during her maternal leave from October 2021 – December 2021.
Vaeth, MatthewMatthew Vaeth
Acting
January 20, 2025 February 7, 2025 Trump, DonaldDonald Trump
(2025–present)
Vought, RussellRussell Vought February 7, 2025 Present

See Also

  • List of federal agencies in the United States
  • United States federal budget
  • Office of Federal Financial Management
  • Office of Federal Procurement Policy
  • Office of E-Government & Information Technology
  • Office of Information and Regulatory Affairs
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