2.12 The Bureaucracy

Link: Lobbyists 

The Constitution also establishes a system of checks and balances by distributing power among the three branches of the federal government. This creates a different bureaucratic structure compared to countries with parliamentary systems, where the executive branch holds most powers. In the U.S., both the president and Congress maintain control, meaning bureaucrats report to two authorities: the president, who leads the executive branch, and the congressional lawmakers, who oversee the funding and establishment of these bureaucratic entities.

Various agencies and programs play significant roles in the federal government. Each branch influences the functions and responsibilities of federal employees. Congress has the power to create or eliminate agencies, provide guidelines, allocate funds for their work, and oversee their operations. Additionally, the Senate confirms or rejects presidential nominations for high-level positions. For instance, in 1989, the Senate turned down President Bush’s choice of former Republican Senator John Tower for Secretary of Defense due to concerns about Tower's personal conduct.

The President serves as the leader of the executive branch, appointing heads of departments and agencies to pursue specific objectives. Typically, presidents select appointees who have strong connections to their political party. In 2000, George W. Bush appointed Donald Rumsfeld as Defense Secretary, reflecting his ties to the Republican Party. Former President Clinton also followed this pattern in 1993 when he chose Lloyd Bentsen, a fiscally conservative figure, as his first Treasury Secretary. Additionally, presidents may aim to create a Cabinet that represents the diversity of the nation; for example, Clinton included four women in his second administration.

Federal courts have the power to assess the legality and constitutionality of actions taken by departments and agencies and to resolve legal disputes involving them.

 The structure of the Bureaucracy

Federal government organizations are known by various titles. The most recognized are the 15 departments led by secretaries who are part of the president’s cabinet. Additionally, there are independent agencies, such as the Environmental Protection Agency (EPA) and the National Aeronautics and Space Administration (NASA). Legally, there is not much distinction between a cabinet-level department and an independent agency, but cabinet status carries significant political weight. Veterans groups campaigned for a long time to promote the Veterans Administration to the status of the Department of Veterans Affairs, and in 1988, Congress granted that change.

Large government organizations can have multiple divisions, often referred to as bureaus, offices, or administrations, with further subdivisions. For instance, the National Weather Service is under the National Oceanic and Atmospheric Administration, which belongs to the Department of Commerce.

Both cabinet departments and independent agencies report to the president. Their leaders are presidential appointees who can be dismissed at any time. Independent regulatory commissions, like the FCC, operate differently. While the president appoints their members and chair, with Senate approval, these officials serve fixed terms and can only be removed for valid reasons, such as misconduct. This structure aims to protect these members from political influence, allowing them to make decisions based on the public's best interests. These commissions create broad policies through administrative rules and implement them in specific situations. The Supreme Court has endorsed their constitutionality, stating their roles are more quasi-judicial and quasi-legislative than political or executive.

The quasi-judicial and quasi-legislative functions have gained attention recently. Problems in the financial services sector raised concerns about weak enforcement, leading Congress to enact reform laws in 2010. When the Federal Trade Commission (FTC) introduced a "do not call" registry to stop unwanted sales calls, telemarketers sued, claiming it lacked authority. However, the court ruled in favor of the telemarketers, but Congress quickly authorized the registry. Strong actions by independent regulatory commissions are not a new occurrence. Over fifty years ago, Justice Robert Jackson noted that these bodies had effectively become a fourth branch of government.

Congress has established government corporations to provide goods and services when the free market is insufficient. One example is the U.S. Postal Service (USPS), which began as a cabinet department. While many private companies offer efficient package delivery, the USPS claims they are unable to guarantee affordable letter delivery to every American address. To support the USPS, laws prevent private companies from competing with its first-class mail service. Additionally, Congress has created government-sponsored enterprises (GSEs), which are privately owned corporations aimed at enhancing credit access. Notable examples include the Federal National Mortgage Association, known as "Fannie Mae," and the Federal Home Loan Mortgage Corporation, referred to as "Freddie Mac." These organizations have been criticized for contributing to the 2008 financial crisis by approving loans for individuals who could not afford to repay them.