Federal Legislation
Congress Expands Executive Reorganization Authority
January 27, 2026
The United States Congress has passed the Reorganizing Government Act of 2025, which reauthorizes and broadens the President's authority to propose reorganization plans for the executive branch. This legislation allows the President to submit plans affecting entire executive departments, not just agencies, and enables expedited congressional consideration. It also permits reductions in federal workforce and expenditures aimed at improving government efficiency by eliminating unnecessary operations and regulations.
- Procurement professionals should anticipate potential restructuring within executive departments that may impact contracting offices, procurement processes, and vendor relationships.
- Agencies may experience shifts in procurement priorities or consolidation of contracts as a result of workforce and operational reductions.
- Contractors should evaluate how these changes could affect existing contracts and future opportunities, particularly in areas related to administrative support and regulatory compliance.
- Organizations involved in government efficiency and management consulting may find increased demand for services supporting reorganization efforts.
H.R. 1295 dramatically and recklessly expands the power it would give to President Trump without vital limitations and guardrails.
— Robert Garcia, Ranking Member
Agencies
United States Congress, Executive Branch, Government Accountability Office, Office of Management and Budget, Department of Education
Locations
Sources
- H. Rept. 119-464 - REORGANIZING GOVERNMENT ACT OF 2025 · congress · Jan 27