After taking the President’s Office, Donald Trump issued an order, which places a hiring freeze for all the federal agencies. However, in the month of April, the freeze was lifted by President Trump and he proposed a 2% increase in pay for the federal employees in the coming year. He also ordered for a reorganization of all the federal agencies. Yet again, it is not yet clear how this reorganization will look like or affect medical billing and coding companies.
President Trump ordered the Office of Management and Budget (OMB) to come up with a plan to reorganize all the governmental functions and remove the unnecessary agencies, agency programs and the components of agencies. The OMB will need to consider:
- If some or all functions of an agency, a component of an agency, or a program are suitable for the Federal government or would be better, if left to the local or State governments or private sector.
- If some or all the functions of an agency, a component, or a program are repetitive, including with the functions of some other agency, component, or program.
- If some of the administrative powers required to run an agency, a component, or a program are overlapping or redundant with those of some other agency, component, or program.
- If the cost that are incurred in running an agency, a component, or a program is justified by the public benefits that are offered by it.
- The costs of merging or shutting down agencies, components, or programs, including the costs to address the shares of the affected agency
Agencies and departments should start to take immediate actions to get cost savings and near term work force reductions. This includes the planning for funding levels that are specified in the President’s Budget Request to the Congress. It is important to note that the Congress has made a deal on a spending bill that provides funding in a way that disregards much of the President’s Budget Request.
The OMB has 180 days to publish their proposed plan, and it should be published in the Federal register for public comment. It is reported that the administration will also host a website that offers a chance to the public to offer their ideas on reorganizing the agencies.