Reorganization Act of 1939

The Law Federal law facilitating structural changes in the executive branch

Also known as Administrative Reorganization Act; Executive Reorganization Act

Date April 3, 1939

The Reorganization Act provided an efficient procedure for the president to make changes in the organization of the federal bureaucracy, requiring a majority of both the House and Senate to veto the president’s proposed changes.

Prior to his election in 1932, President Franklin D. Roosevelt, influenced by the Progressive tradition, was a strong advocate of reorganizing governmental institutions to improve efficiency and economy. After Roosevelt’s election, the creation of large numbers of New Deal agencies strengthened his conviction that there was a need for more systematic control of the bureaucracy. In 1936, he appointed three distinguished political scientists, Louis Brownlow, Charles Merriam, and Luther Gulick, to the President’s Committee on Administrative Management (also known as the Brownlow Committee), which had the task of formulating a reorganization plan. The committee utilized a professional staff of twenty-six experts under the direction of Joseph P. Harris.

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In January, 1937, the committee’s report declared that “the president needs help.” It recommended six major changes:

•creating a presidential agency for centralized planning of the economy

•transferring all independent regulatory agencies within executive departments

•granting the president authority to create new cabinet departments by executive order

•giving the president direct control over the Bureau of the Budget

•consolidating the civil service system

•creating positions for up to six presidential assistants based in the White House

Roosevelt sent the report to Congress with his enthusiastic endorsement. Following the Democratic electoral landslide of November, 1936, he had good reason to be optimistic about receiving congressional support.

The report elicited great opposition. Many members of Congress warned that approval of the proposals would be a step toward “presidential dictatorship.” Special-interest organizations and numerous agencies in the federal bureaucracy were opposed to particular items. In February, Roosevelt further incensed the opposition by issuing his controversial proposal to enlarge the Supreme Court. In 1938, when Congress finally voted on a reorganization bill, the House of Representatives rejected the measure—a defeat that appeared to herald the end of significant New Deal reforms.

Roosevelt and Democratic leaders responded to the defeat with a revised bill that was much more modest in scope, eliminating all of the controversial proposals of the Brownlow Committee. The revised bill contained only two components: It authorized the president to propose changes in bureaucratic organization, subject to a veto by a majority of both houses of Congress, and it allowed the president to appoint up to six executive assistants. Congress approved the bill with a solid majority on April 3, 1939.

Roosevelt quickly took advantage of the new law. On April 25, he presented Congress with Reorganization Plan Number 1, which was quickly approved. The most important item in the plan was the creation of an Executive Office of the President, which was made up of several important agencies, including the Bureau of the Budget, the White House staff, and the National Resources Planning Board. The plan also created the Federal Security Agency, the Federal Works Agency, and the Federal Loan Agency. Two weeks later, Roosevelt submitted Reorganization Plan Number 2, which implemented a number of minor interdepartmental transfers. This plan also passed by a comfortable majority. In July, Roosevelt appointed three executive assistants, one of whom was assigned to work with the Civil Service Administration.

Impact

Often considered the last major New Deal measure before World War II, the Reorganization Act provided the president with additional prerogatives for reorganization that continued into the twenty-first century. Although much more limited than the original proposals of the Brownlow Committee, the Reorganization Act is generally considered to have increased the efficiency and power of the presidency. The legislation allowed Roosevelt to create the Executive Office of the President, which has been appraised as a well-designed institution by most specialists in public administration.

Bibliography

Arnold, Peri E. Making the Managerial Presidency: Comprehensive Reorganization Planning, 1905-1996. 2d ed. Lawrence: University Press of Kansas, 1998.

Brownlow, Louis. A Passion for Anonymity: The Autobiography of Louis Brownlow— Second Half. Chicago: University of Chicago Press, 1958.

Karl, Barry Dean. Executive Reorganization and Reform in the New Deal: The Genesis of Administrative Management, 1900-1939. Cambridge, Mass.: Harvard University Press, 1963.

Polenberg, Richard. Reorganizing Roosevelt’s Government: The Controversy over Executive Reorganization, 1936-1939. Cambridge, Mass.: Harvard University Press, 1966.

Regan, Patrick D. Designing a New America: The Origins of New Deal Planning, 1890-1943. Amherst: University of Massachusetts Press, 2000.