Office of Management and Budget facts for kids

Quick facts for kids
Office of Management and Budget

Agency overview
Formed	July 1, 1970; 55 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	Russell Vought, Director
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.

• The United States Environmental Protection Agency uses a standard called ISO 14001 for environmental management.
• The United States Department of Energy uses ISO 50001 for energy use.
• The Food and Drug Administration uses ISO 13485 for medical devices and ISO 22000 for food products.

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:

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