April 8, 2025

Dear Friends and Family,

The first three segments’ excerpts of the series provided insight into the power the permanent bureaucracy has in our government and how it was attained. This segment is devoted to delineating who the bureaucracy is, what they are charged to do, how many employees exist to fulfill the agency responsibilities, and their annual budget.
As an introduction to the segment, I will provide a macro look at the bureaucracy through the lens of the 2025 federal budget. The budget which follows is in billions of dollars.

​Federal Budget – 2025 Fiscal Year

Discretionary Programs	Mandatory Programs	Other Expenditures
Defense 900	Social Security 1543	Interest on Debt 965
Non-defense 1029	Medicare 936
	Medicaid 589
	Other Mandatory 1303
Subtotal 1929	Subtotal 4372

The total budgeted expenditure for 2025 is $7,266 billion ($7.226 trillion) Note: Expected Revenue totals $5,485 billion leaving a budgeted deficit of $1,781 billion which will be added to our current $36 trillion debt.
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The 15 cabinet budgets are part of the $1,029 non-defense discretionary line item. The total budget of the 15 combined cabinet budgets is $3,869, as reported in the text below, but that includes defense spending of $900 billion plus Medicare ($936 billion) and Medicaid ($589 billion) which is part of the HHS cabinet budget.  Deducting those three items leaves $1,424 billion.  This is greater than the non-defense discretionary budget shown above. The reason is that some of the Cabinet budgets include monies from the other mandatory program line above. The other mandatory program line includes Income Security and Welfare programs such as Earned Income Tax Credit, Supplemental Nutrition Assistance, Supplement Security Income, Temporary Assistance for Needy Families, Unemployment Insurance, Federal Retirement Programs for Federal Civilian Military Retirees, Veteran programs and various other programs that provide agricultural subsidies. Although mandatory, some of these funds are funded in the budgets of the cabinet and independent agencies of the executive branch. Social Security expenditures are managed by the independent Social Security Administration agency.

Organizational Structure: The federal bureaucracy is organized by departments and agencies. Departments exist as entities of the executive branch cabinets. Agencies exist within each department. Further, there are also independent agencies which are outside the purview of the cabinet departments. Each department and most of the independent agencies are described in the following text including their respective budgets and number of employees.

The total number of employees in the cabinet departments is 4,300,000. That includes 1.4 million active-duty military and 778,000 in the national guard. That leaves approximately 1 million civilians in the DoD. Excluding the military there are approximately 2,122,000 members of the permanent bureaucracy in the cabinet departments. Added to that are employees in the executive branch independent agencies which total about 110,000. That brings the permanent bureaucracy to around 2.23 million. The post office which operates independently totals 525,469 employees.
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Next: The next seven segments will focus on the history and character of several executive agencies. Segment 5 analyzes U.S. Intelligence from 1920 to 1947 with particular emphasis on the FBI and Office of Strategic Services (OSS) which ultimately became the CIA.

Happy Learning,
Harley

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THE GOVERNMENT OF THE EXECUTIVE BRANCH – SEGMENT 4
DEPARTMENTS AND AGENCIES

DEFINITIONS
DEPARTMENTS: In the federal government, department refers to one of the executive departments enumerated in Title 5. These departments are responsible for implementing and enforcing laws and policies. Cabinet departments are the principal executive agencies who advise the President and oversee federal policies and programs. They are the administrative arms of the president of the United States. There are currently 15 of them.
AGENCIES: The term “agency” includes any department, independent establishment, commission, administration, authority board, or bureau of the United States or any corporation in which the United States has a proprietary interest. Legislative definitions of an agency of the federal government of the United States are varied, and even contradictory. The official United States Government Manual offers no definition. While the Administrative Procedure Act definition of “agency” applies to most executive branch agencies. Congress may define an agency however it chooses in enabling legislation, and through and through subsequent litigation often involving the Freedom of Information Act. There are no guidelines or limits on an agency’s size.
GOVERNMENT AGENCIES: In practical application, there are two types of agencies in the United States Government: first, Federal executive agencies, those headed by a Cabinet secretary and report to the Executive Office of the President, and second independent agencies that exist outside the federal executive departments.  While considered part of the executive branch, these independent agencies are insulated from presidential control, usually because the president’s power to dismiss the agency head or a member is limited. Many of these agencies have been assigned rulemaking responsibilities of authorities by Congress and are termed independent regulatory agencies. Generally, the heads of independent regulatory agencies can only be removed for cause, but Cabinet members and heads of independent executive agencies serve “at the pleasure of the president” and can be removed without cause.
FEDERAL EXECUTIVE DEPARTMENTS & AGENCIES: Within the Executive Branch, there are 15 departments and approximately 575 agencies.  

• State: 30,000 employees with a $58.1 billion budget. Responsible for the country’s foreign policy and relations. The State Department was formed on July 27, 1789. It currently has only one agency which is led by Marco Rubio.
• Treasury: 100,000 employes with a $16.4 billion budget. Manages the country’s finances and economic security. The Treasury department was formed on September 2, 1789. It currently has 13 agencies. Its primary agency is the Internal Revenue Service with 93,654 employees. The department is led by Scott Bessent.
• Interior: 70,000 employees with a $35 billion budget. The Interior department was formed on March 3, 1849. This department is responsible for the   management of most federal lands and natural resources. It also administers programs related to Native Americans, Alaska Natives, and Native Hawaiians. The department has 11 agencies.  Its primary agencies are Park Service (21,805), Bureau of Land Management (10,320), Indian Affairs (9,231) and Geological Survey (8,961). The department is led by Doug Burgum.
• Agriculture: 100,000 employees with a $242 billion budget. It was formed on May 15, 1862, with responsible for providing leadership on issues related to food, agriculture and natural resources. The department of Agriculture has 30 agencies: the primary ones are: Forest Service (31,927), Natural Resources Conservation (11,671), Food and Safety Inspection (10,009), Agricultural Research (8,903), Rural Housing Service (5,647) and Farm Service (5,074). Its Secretary is Brooke Rollins.
• Justice: 113,543 employees with a $37.5 billion budget. The Justice Department was initially formed on July 1, 1870. The agency enforces federal laws, represents the United States in legal matters, and directs federal prisons. It contains 13 agencies.   Its primary agencies are the Federal Prison System (37,097), FBI (33,486), U.S. Attorneys (12,157), Drug Enforcement (9,623), Bureau of Alcohol, Tobacco, Firearms, and Explosives (5,119) & U.S. Marshals Service (5,048). Its leader is Pam Bondi.
• Commerce: 41,000 employees with a $16.3 billion budget. Its responsibility is to promote economic growth and job creation. The Department of Commerce was formed on February 14, 1903, and currently has 14 agencies.  Its primary agencies are Bureau of Census (20,987), National Oceanic and Atmospheric (12,909), and Patent and Trademark (9,608). Its Secretary is Howard Lutnick.
• Labor: 15,000 employees with a $97.5 billion budget. The Labor Department was formed on March 4, 1913, and has 18 agencies. Its job is to enforce labor laws and promote the welfare of workers, job seekers, and retirees. Its primary agencies are Employment standards (4,221), Bureau of Labor Statistics (2,481). Mining Safety and Health Administration (2,300) and Occupational Safety and Health Administration (2,165). The Secretary of Labor is Lori Chavez – DeRemer.
• Defense: 3,200,000 employees with a $852 Billion budget.  The Department of Defense was formed on August 10, 1949, when the departments of the Army, Navy, and AirForce were combined into the Department of Defense. They are responsible for the military, including the Army, Navy, Marine Corps, and Air Force. The department has 172 agencies -- 67 Air Force, 55 Army, 21 Navy and 29 Department of Defense (DOD). The DOD’s primary agencies are Defense Logistics (25,105), Defense Education (15,629), Defense Commissary (15,793), Finance and Accounting (12,247), Defense Contract Management (10,169), and Information Systems (5,611). The DOD is housed in the Pentagon. The Secretary of Defense is Pete Hegseth.
• Health and Human Services: 65,000 employees with a $1,772 Trillion budget. Its responsibility is to protect the health of Americans and provide essential human services, including health insurance, food & drug safety, and public health services. The department was formed on April 11, 1953. It has 14 agencies. Their primary agencies include National Institutes of Health [NIH] (19,303), Indian Health Service (14,000), Food and Drug Administration [FDA] (13,844), Centers for Disease Control [CDC] (9,417) and Centers for Medicare & Medicaid Services (4,484). The leader of HHS is Robert F. Kennedy, Jr.
• Housing and Urban Development: 9,000 employees and $61.7 Billion budget. HUD was formed on September 9, 1965. They develop communities, improve housing, and enforce fair housing laws. They have 30 agencies, but none have over 1,000 employees. The Secretary of HUD is Scott Turner.
• Transportation: 55,000 employees with a $145 Billion budget. The Department of Transportation was formed on April 1, 1967. They are responsible for overseeing and administering a wide range of transportation programs, policies and regulations for both aviation and surface transportation. They plan and coordinate federal transportation projects and set safety regulations for all major modes of transportation. They have 11 agencies, the largest being the Federal Aviation Administration (48,505). Their cabinet secretary is Sean Duffy.
• Energy: 10,000 employees with a $45.8 Billion budget. The department of energy was formed August 4, 1977, and only has one agency. This department manages the nation’s energy policy and nuclear infrastructure plus funding scientific research. Its leader is Christopher Wright.
• Education: 4,200 employees with a $79.6 Billion budget. This agency collects information on schools and teaching to help states establish effective school systems.  They have 25 agencies with only one having over 1,000 employees, which is the Federal Student Loan Agency (1,003). The department was formed on October 17, 1979, and is currently led by Linda McMahon.
• Veteran Affairs: 235,000 employees with a $308.5 Billion budget. It was formed on March 16, 1989. The VA is responsible for administering benefit programs for veterans, their families, and their survivors. These benefits include pension, education, disability compensation, home loans, life insurance, vocational rehabilitation, survivor support, medical care, and burial benefits. They have 28 agencies, the largest being the Veteran’s Health Administration (268,381). The VA’s Secretary is Doug Collins.
• Homeland Security: 250,000 employees with a $101.6 Billion budget. The Department of Homeland Security was formed on November 25, 2002, a year after the 9/11 terrorist attack. The DHS protects the United States by preventing and responding to threats to national security.  This includes terrorism, disasters, and cyberattacks. They also work to secure our borders and immigration system. Their primary agencies include the Transportation Security Administration [TSA] (59,650), Bureau of Customs and Border Protection (58,027), Bureau of Immigration and Customs Enforcement (19,376), Federal Emergency Management Center [FEMA] (16,530), Bureau of Citizenship an Immigration Services (10, 560), U.S. Coast Guard (8,146), and U.S. Secret Service (6,802).  In total they have 10 agencies. The Secretary of Homeland Security is Kristi Noem.

 
INDEPENDENT EXECUTIVE AGENCIES: Those agencies that are not part of one of the above departments. There are 56 in total, of which 13 are regulatory. The following are eight prominent independent Executive agencies.

• Environmental Protection Agency (EPA): 14,592 employees with a $9.6 Billion budget. The agency conducts environmental assessments, research, and education. It has the responsibility of maintaining and enforcing national standards under a variety of environmental laws, in consultation with state, tribal, and local governments. EPA enforcement powers include fines, sanctions, and other measures. Lee Zeldin heads the EPA, appointed by President Trump.
• The Central Intelligence Agency (CIA): 21,575 estimated employees. Its budget is part of the National Intelligence Program (NIP) budget which is requested by the Director of National Intelligence (DNI).  NIP is part of the larger intelligence community budget which also includes Multi-intelligence Program (MIP). The budget request for 2025 is $73.4 Billion for NIP and $28.2 Billion for MIP. The CIA is responsible for gathering foreign intelligence and providing national security assessments to policymakers in the United States. John Radcliffe was appointed by President Trump to lead the CIA.
• The National Aeronautics and Space Administration (NASA): NASA employs about 18,000 people with a budget of $25.4 Billion and supports the employment of tens of thousands more through contracts and grants. It’s the federal government’s space agency and is responsible for the civilian space program as well as aeronautics and aerospace research.
• National Archives and Records Administration (NARA): NARA has 2,809 permanent employees with a total workforce including temporary staff reaching about 3,529. The current budget is $481 Million.
• National Science Foundation (NSF): NSF has approximately 200 rotating scientists and engineers, 1,500 career employees and 450 contract employees. Their budget request for 2025 is $10.2 Billion. NSF supports fundamental research and education in all the non-medical fields of science and engineering.
• National Transportation Safety Board (NTSB): NTSB has approximately 400 people and an annual budget of $145 million. It is responsible for civil transportation accident analysis in the U.S. They investigate and report on aviation accidents and incidents, certain types of car accidents, ship and marine accidents, pipeline transport accidents, and rail transport accidents.
• Small Business Administration (SBA): SBA has 2,414 employees and an annual budget of $1.2 Billion. The agency was created in 1953 to advise, assist, and protect the interests of small business concerns. The SBA guarantees loans to small businesses, aids victims of floods and other natural disasters, promotes the growth of minority-owned firms, and helps secure contracts for small businesses to supply goods and services to the federal government. Kelly Loeffler was nominated by President Trump to be its administer.
• The Office of Special Counsel (OSC): OSC has 135 full-time employees with a budget request of $33.8 million. It is a permanent investigative and prosecutorial agency with a secure channel for federal whistleblower disclosures, protects federal employees from reprisal for whistleblowing.
• The United States Postal Service (USPS) is defined by statute as an “independent establishment” of the federal government, which replaced the Cabinet-level Post Office Department in 1971. It is responsible for the collection, transportation, and delivery of mail through local post offices across the country. They have 525,469 career employees with an annual operating revenue of $78.2 Billion. Since the 1970 reorganization the USPS has been largely self-funded according to the Congressional Research Service. The Postal Service accumulated $87 billion in losses from 2007 to 2020.

 
REGULATORY AGENCIES: While most executive agencies have a single director, administrator, or secretary appointed by the president of the United States, independent agencies, generally outside presidential control almost always have a commission board, or similar collegial body consisting of five to seven members who share power over the agency. This is why many independent agencies include the word “Commission” of “Board” in their name. The president appoints the commissioners or board members, subject to Senate confirmation, but they often serve terms that are staggered and longer than a four-year presidential term, meaning that most president will not have the opportunity to appoint all the commissioners of a given agency. In addition, most independent agencies have a statutory requirement of bipartisan membership on the commission.  Examples of such agencies include:

• Commodity Futures Trading Commission (CFTC): The CFTC regulates commodity futures and option market in the U.S. The agency protects market participants against manipulation, abusive trade practices and fraud. Through oversight and regulation, the CFTC enables the markets to serve better their important function in the US economy, providing a mechanism for price discovery and a means of offsetting price risk. The Commission has 699 employees with a budget of $399 million.
• The Consumer Financial Protection Bureau (CFPB) is responsible for consumer protection in the financial sector. Its jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, and other financial companies in the US. The CFPB has approximately 1,700 employees and a $596 million budget.
• Federal Communications Commission (FCC): The FCC is charged with regulating interstate and international communications by radio television, wire, satellite, and cable. It licenses radio and television broadcast stations, assigns radio frequencies, and enforces regulations designed to ensure that cable rates are reasonable. The FCC regulates common carriers, such as telephone and telegraph companies, as well as wireless telecommunications service providers. The FCC has 1,600 full-time employees and a budget of $448,075 as their budget is funded primarily by regulatory fees.
• Federal Deposit Insurance Corporation (FDIC): The FDIC provides deposit insurance to depositors in U.S. commercial banks and savings banks. The FDIC was created by the 1933 Banking Act, enacted during the Great Depression to restore trust in the American Banking system. Member banks’ insurance dues are the primary source of funding. The FDIC has 6,876 full-time equivalent positions and a budget of $3 billion.
• Federal Energy Regulatory Commission (FERC): FERC is the United States federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectricity licensing, natural gas pricing, and oil pipeline rates. FERC also reviews and authorizes liquefied natural gas (LNG) terminals, interstate natural gas pipelines, and non-federal hydropower projects. FERC has approximately 1,500 employees with a budget that was around $369.9 million in fiscal year 2019. Another source says it is self-funded through annual charges to the natural gas, oil, and electric industries it regulates.
• Federal Housing Finance Agency (FHFA): FHFA regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. The FHFA has 731 employees. It receives its funding from the entities it regulates.
• Federal Maritime Commission (FMC): The FMC regulates the international ocean transportation of the United States. It is charged with ensuring a competitive and efficient ocean transportation system. The Commission has 180 full-time positions with a budget of $48.5 million.
• Federal Reserve System (The Fed): The Fed is the central bank of the United States. It conducts the nation’s monetary policy by influencing the volume of credit and money in circulation. The Federal Reserve regulates private banking institutions, works to contain systemic risk in financial markets, and provides certain financial services to the federal government, the public, and financial institutions. The Fed has nearly 24,000 employees. Its 2024 operating budget is $6,053 million and capital budget is $913.9 million.
• Federal Trade Commission (FTC): The FTC enforces federal antitrust and consumer protection laws by investigating complaints against individual companies initiated by consumers, businesses, congressional inquiries, or reports in the media. The commission seeks to ensure that the nation’s markets function competitively by eliminating unfair or deceptive practices. The FTC has 1,217 full-time equivalents and a budget of $425.7 million.
• National Labor Relations Board (NLRB): The NLRB administers the principal United States labor law, the National Labor Relations Act. The board is vested with the power to prevent or remedy unfair labor practices and to safeguard employees’ rights to organize and determine through elections whether to have a union as their bargaining representative. The NLRB has 1,200 employees and a budget of $320 million.
• Nuclear Regulatory Commission (NRC): The NRC was established by the Energy Reorganization Act of 1974 from the United States Atomic Energy Commission and opened January 19, 1975. The NRC oversees reactor safety and security, reactor licensing and renewal, radioactive material safety, and spent fuel management (storage, security, recycling, and disposal). The NRC has approximately 3,000 employees and an annual budget around $1 billion.
• Postal Regulatory Commission (PRC): The PRC was created in 1971 as the Postal Rate Commission and strengthened under the Postal Accountability and Enhancement Act enacted in December 2006. They provide regulatory oversight over the activities of the United States Postal Service. The PRC has around 90 employees and a budget of approximately $21.1 million.
• The Security and Exchange Commission (SEC) was established to protect investors who buy stocks and bonds. Federal laws require companies that plan to raise money by selling their own securities to file reports about their operations with the SEC, so that investors have access to all material information. The commission has powers to prevent or punish fraud in the sale of securities and is authorized to regulate stock exchanges. The SEC employs around 4,500 people with a budget of $399.7 million. It also is funded by fees from securities transactions, penalties, and disgorgements.

 
AGENCIES: Within the executive branch there are approximately 575 departmental agencies and 56 independent agencies. The larger of these are mentioned above. But there are some which caught my eye as I went through various listings:

1. The Federal Retirement Thrift Investment Agency: Helps current and former employees prepare for their retirement years utilizing the Federal Thrift Savings Plan. (270 employees) It has an 84% satisfaction rating.
2. Inter-American Foundation (IAF): The IAF is a nimble and transformative U.S. government agency that invests in locally led development across Latin America and the Caribbean. They directly engage community leaders, innovators, and entrepreneurs working to make our region and their communities more prosperous, peaceful and democratic. The process begins with a community applying for a grant.
3. HUD’s Office of Manufactured Housing (OMHP): OMHP is a national program established to protect the health and safety of those that own and occupy manufactured homes through the enforcement of the federal manufactured home and construction and safety standards, installation standards, and the administration of disputes.
4. Merit Systems Protection Board (MSPB): MSPB is an independent, quasi-judicial agency in the Executive branch that serves as the guardian of Federal merit systems. The mission of the MSPB is to “Protect the Merit System Principles and promote an effective Federal workforce free of Prohibited Personnel Practices. MSPB carries out its statutory responsibilities and authorities primarily by adjudicating individual employee appeals and by conducting merit systems studies. What We Will Not Do:
   • Hear and decide on discrimination complaints. That responsibility belongs to the Equal Employment Opportunity Commission (EEOC).
   • Negotiate and resolve unfair labor practice complaints. That responsibility belongs to the Federal Labor Relations Authority (FLRA),
   • Provide advice on employment, examinations, staffing, retirement, and benefits. That responsibility belongs to the Office of Personnel Management (OPM).
   • Investigate allegations of activities prohibited by civil service laws, rules or regulations That responsibility belongs to the Office of Special Counsel (OSC)

[Note: I wonder how equity complaints resulting for DEI training are being handled?]

1. Millennium Challenge Corporation (MCC): MCC is a bilateral United States foreign aid agency established by the U.S. Congress in 2004. It is an independent agency separate from the State Department and USAID. It provides grants to countries that have been determined to have good economic policies and potential for economic growth.  An eligible country must apply for a grant with a specific project in mind.

[Note: Will MCC get the same fate as USAID and be folded into the State Dept.?]

1. Middle East Broadcasting Network Agency: The Middle East Broadcasting Network operates Alhurra TV and Radio Sawa. They provide news to the people of the Middle East about the region, the world and the United States. The Office of Cuba Broadcasting Agency does the same for Cuba.
2. The Smithsonian Institution Agency: The Smithsonian is the world’s largest museum, education, and research complex with 21 museums, 21 libraries, the National Zoo, numerous research centers, and several education units and centers.
3. Woodrow Wilson International Center for Scholars (WWICS). The WWICS is a Washington D.C. – based think tank. It is also a United States presidential memorial established as part of the Smithsonian Institution by an act of Congress in 1968. It was ranked as the 10th leading think tank in the world in 2020. In November 2022, it was designated as an “undesirable organization” in Russia.

Sources: Multiple Governmental Publications and Wikipedia.