Office of Management and Budget facts for kids
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Agency overview | |
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Formed | July 1, 1970 |
Preceding agency |
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Headquarters | Eisenhower Executive Office Building, Washington, D.C., U.S. |
Employees | 448 |
Annual budget | $141 million (FY 2022) |
Agency executives |
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Parent agency | Executive Office of the President of the United States |
Child agencies |
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The Office of Management and Budget (OMB) is a very important office that helps the President manage the U.S. government. It is the largest office within the Executive Office of the President of the United States (EOP).
OMB's main job is to create the President's yearly budget plan for Congress. It also checks how government agencies are doing. This includes looking at their programs and rules to make sure they follow the President's plans. OMB helps different agencies work together on important projects.
Russell Vought is the current Director of the OMB. He started this role in February 2025.
Contents
History of the OMB
From Bureau to Office
The OMB started out as the Bureau of the Budget in 1921. It was first part of the Department of the Treasury. President Warren G. Harding signed the law that created it.
In 1939, the Bureau of the Budget moved to the Executive Office of the President. This happened during World War II, when the government was spending a lot more money. Harold D. Smith led the Bureau during this time. People who worked there said the Bureau and the President were very close.
Becoming the OMB
The Bureau of the Budget changed its name and structure in 1970. This happened during the time Richard Nixon was President. It became the Office of Management and Budget. The first leaders of the new OMB included Roy Ash and Paul O'Neill.
In the 1990s, OMB changed again. It combined the jobs of managing and budgeting into one role for its staff. This helped them work more efficiently.
What the OMB Does
Managing the Nation's Money
The OMB helps the President create the budget plan that is sent to Congress. It also watches over how the different parts of the government spend their money. OMB checks if government programs are working well. It helps decide which programs need money the most.
OMB makes sure that all government reports, rules, and new laws fit with the President's budget and plans. This helps keep the government running smoothly.
Improving Government Operations
The OMB also helps improve how the government buys things, manages its money, handles information, and creates rules. In these areas, OMB works to make government management better. It tries to find ways to measure success and reduce unnecessary work for the public.
OMB has two main goals:
- Budgeting: It creates and manages the government's budget. This is how the President puts their plans into action. It affects everything from the Department of Defense to NASA.
- Overseeing Agencies: It helps manage the money, paperwork, and computer systems of other government agencies.
How the OMB is Organized
Who Works at OMB?
Most people who work at OMB are career staff. This means they stay in their jobs even when new Presidents are elected. This helps keep things consistent.
Six top positions at OMB are chosen by the President and approved by the Senate. These include the Director and Deputy Directors.
Resource Management Offices
The biggest parts of OMB are the five Resource Management Offices. These offices are set up to match different parts of the federal government. Each office is led by an Associate Director.
About half of all OMB staff work in these offices. They are called program examiners. These experts watch over one or more federal agencies. They might also focus on specific topics, like U.S. Navy ships. They give advice on both management and budget issues.
Every year, program examiners review budget requests from federal agencies. They help decide what money requests will be sent to Congress. They also check how well programs are performing. They review new rules and laws. They help the President's team with important information.
Support Offices
Other parts of OMB help support the whole office. These include:
- The Office of General Counsel (legal advice).
- The Office of Legislative Affairs (works with Congress).
- The Budget Review Division (BRD) (handles budget details).
- The Legislative Reference Division (reviews proposed laws).
The BRD helps put together the President's budget each February. It makes sure all the numbers are correct.
The Legislative Reference Division checks all proposed laws and official statements from federal officials. It gathers opinions from different government departments. It also writes a memo to the President when a bill is ready to be signed into law. This memo explains the bill and suggests if the President should sign or veto it.
OMB's Role in the Budget Process
Creating the President's Budget
The OMB helps the President create the yearly budget plan. It sends out instructions and guidelines to all government agencies. The OMB works closely with these agencies to make sure the budget process goes smoothly.
Creating the budget takes almost a year. Here are the main steps:
- The OMB first tells the President about the country's economic situation.
- OMB gives agencies instructions on what policies to follow for their budget requests. They also set deadlines.
- 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 by September.
- The government's fiscal year starts on October 1. OMB staff meet with agency leaders to check if their proposals match the President's plans.
- The OMB Director meets with the President to discuss the budget proposals. They recommend a final federal budget plan. Agencies are told about the decisions.
- Agencies can ask OMB and the President to reconsider decisions they don't like in December.
- After issues are resolved, agencies and OMB prepare a document to explain the budget to Congress.
- By the first Monday in February, the President must send the final budget to Congress for approval.
Keeping the Government Running
OMB also helps create "Statements of Administrative Policy" (SAPs). These statements tell Congress the White House's official position on proposed laws.
OMB plays a key role in solving disagreements about policies. It makes sure that new laws and agency actions fit with the President's plans. OMB is very powerful and important. It helps make sure the government's daily work gets done. Without a budget, federal workers might not get paid. Government buildings could close, and programs would stop. This can lead to a government shutdown. Shutdowns happen when Congress does not approve a budget.
OMB Circulars
Circulars are instructions or information that OMB sends to federal agencies. They cover different topics like:
- Budgeting
- Working with state and local governments
- Rules for schools and non-profit groups
- Government buying rules
- Managing federal money
- Handling government information
Circular A-119
Circular A-119 tells federal agencies to use "voluntary consensus standards." These are standards created by experts from different groups, not just the government. For example, the Environmental Protection Agency uses ISO 14001 standards for environmental management. The Food and Drug Administration uses ISO 13485 for medical devices. This helps make sure government work follows widely accepted best practices.
Current Leaders
- Director: Russell Vought
- Deputy Director: Dan Bishop
- Deputy Director for Management: Eric Ueland
List of Directors
Here is a list of people who have led the OMB (or its earlier form, the Bureau of the Budget):
Image | Name | Start | End | President | |
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Charles G. Dawes | June 23, 1921 | June 30, 1922 | Warren G. Harding | |
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Herbert M. Lord | July 1, 1922 | May 31, 1929 | ||
Calvin Coolidge | |||||
Herbert Hoover | |||||
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Clawson Roop | August 15, 1929 | March 3, 1933 | ||
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Lewis Williams Douglas | March 7, 1933 | August 31, 1934 | Franklin D. Roosevelt | |
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Daniel W. Bell | September 1, 1934 | April 14, 1939 | ||
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Harold D. Smith | April 15, 1939 | June 19, 1946 | ||
Harry S. Truman | |||||
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James E. Webb | July 13, 1946 | January 27, 1949 | ||
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Frank Pace Jr. | February 1, 1949 | April 12, 1950 | ||
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Frederick Lawton | April 13, 1950 | January 21, 1953 | ||
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Joseph Dodge | January 22, 1953 | April 15, 1954 | Dwight D. Eisenhower | |
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Rowland Hughes | April 16, 1954 | April 1, 1956 | ||
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Percival Brundage | April 2, 1956 | March 17, 1958 | ||
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Maurice Stans | March 18, 1958 | January 21, 1961 | ||
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David E. Bell | January 22, 1961 | December 20, 1962 | John F. Kennedy | |
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Kermit Gordon | December 28, 1962 | June 1, 1965 | ||
Lyndon B. Johnson | |||||
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Charles Schultze | June 1, 1965 | January 28, 1968 | ||
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Charles Zwick | January 29, 1968 | January 21, 1969 | ||
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Robert P. Mayo | January 22, 1969 | June 30, 1970 | Richard Nixon | |
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George Shultz | July 1, 1970 | June 11, 1972 | ||
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Caspar Weinberger | June 12, 1972 | February 1, 1973 | ||
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Roy Ash | February 2, 1973 | February 3, 1975 | ||
Gerald Ford | |||||
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James Thomas Lynn | February 10, 1975 | January 20, 1977 | ||
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Bert Lance | January 21, 1977 | September 23, 1977 | Jimmy Carter | |
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James T. McIntyre | September 24, 1977 | January 20, 1981 | ||
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David Stockman | January 21, 1981 | August 1, 1985 | Ronald Reagan | |
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James C. Miller III | October 8, 1985 | October 15, 1988 | ||
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Joe Wright | October 16, 1988 | January 20, 1989 | ||
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Richard Darman | January 25, 1989 | January 20, 1993 | George H. W. Bush | |
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Leon Panetta | January 21, 1993 | July 17, 1994 | Bill Clinton | |
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Alice Rivlin | October 17, 1994 | April 26, 1996 | ||
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Franklin Raines | September 13, 1996 | May 21, 1998 | ||
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Jack Lew | May 21, 1998 | January 19, 2001 | ||
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Mitch Daniels | January 23, 2001 | June 6, 2003 | George W. Bush | |
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Joshua Bolten | June 6, 2003 | April 15, 2006 | ||
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Rob Portman | May 26, 2006 | June 19, 2007 | ||
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Jim Nussle | September 4, 2007 | January 20, 2009 | ||
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Peter R. Orszag | January 20, 2009 | July 30, 2010 | Barack Obama | |
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Jeff Zients Acting |
July 30, 2010 | November 18, 2010 | ||
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Jack Lew | November 18, 2010 | January 27, 2012 | ||
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Jeff Zients Acting |
January 27, 2012 | April 24, 2013 | ||
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Sylvia Mathews Burwell | April 24, 2013 | June 9, 2014 | ||
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Brian Deese Acting |
June 9, 2014 | July 28, 2014 | ||
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Shaun Donovan | July 28, 2014 | January 20, 2017 | ||
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Mark Sandy Acting |
January 20, 2017 | February 16, 2017 | Donald Trump | |
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Mick Mulvaney | February 16, 2017 | March 31, 2020 | ||
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Russell Vought | January 2, 2019 | July 22, 2020 | ||
July 22, 2020 | January 20, 2021 | ||||
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Rob Fairweather Acting |
January 20, 2021 | March 24, 2021 | Joe Biden | |
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Shalanda Young | March 24, 2021 | March 17, 2022 | ||
March 17, 2022 | January 20, 2025 | ||||
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Matthew Vaeth Acting |
January 20, 2025 | February 7, 2025 | Donald Trump | |
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Russell Vought | February 7, 2025 | present |
Images for kids
See also
In Spanish: Oficina de Administración y Presupuesto para niños