Senate reconciliation bill would give Trump ‘carte blanche’ to reorganize agencies, lay off feds

A provision added to the Senate iteration of Republicans’ proposed budget reconciliation package would give the White House $100 million to reorganize federal agencies as President Trump sees fit, without congressional input in what critics decried as an “abrogation” of Congress’ power and responsibility.

The measure appeared in the Senate Homeland Security and Governmental Affairs Committee’s portion of the legislation aimed at reducing federal spending in order to partially pay for tax cuts for the ultrawealthy and increased immigration enforcement, alongside proposals to make future feds pay more towards their retirement benefits, particularly if they wish to retain protections against being unfairly disciplined or fired.

“Prior to 1984, the president exercised reorganization authority that allowed him to develop plans for reorganizing, closing or consolidating portions of the federal government that he identified as wasteful, unnecessary or duplicative,” wrote committee Republicans in a fact sheet accompanying the package last week. “This authority, which was used over 100 times between 1932 and 1984, expired in 1984 despite multiple administrations requesting its renewal. This provision would reestablish the authority for a president to reorganize government as long as these plans do not result in an increase in federal agencies and the plan does not result in an increase in federal spending.”

The measure requires the White House to submit an annual report of planned reorganizational moves, but otherwise exempts the administration from most provisions of the federal law governing such actions. And the 10-year reorganization authority could not be used by a future Democratic president to rebuild federal agencies, thanks to language requiring reorganizations be cost-neutral and not “result in an increase in the number of federal agencies.”

If enacted as currently written, the measure likely would short-circuit the bevy of lawsuits challenging—and for now, blocking—the Trump administration’s plans to issue reductions in force across government. Though most RIFs have been on hold in recent weeks, the administration has signaled it will issue a RIF to 3% of National Archives and Records Administration staff at the end of June, as NARA is not covered by an order halting their implementation at nearly two-dozen agencies.

John Hatton, staff vice president for policy and programs at the National Active and Retired Federal Employees Association, criticized the provision as granting the White House “carte blanche” to gut the federal workforce.

“I think the abrogation of power represented in the reorganization of government provision is pretty radical,” he said. “It would indicate a very weak Congress and a very weak Senate if they pass a version of the bill that includes that provision.”

International Federation of Professional and Technical Engineers President Matt Biggs said the measure would effectively green light the “dismantling” of government agencies.

“The inclusion of the Reorganizing Government Act of 2025 in the reconciliation bill would be nothing short of Congress surrendering its authority and deliberative process to a president who is recklessly dismantling the government, harming public services and wasting government resources,” he said in a statement. “[We] call on all lawmakers in Congress to oppose these budget reconciliation provisions that attack the federal government and the federal workforce that serves the American public. This is not just about standing up for our members and our union, but for all Americans.”