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Office of Management and Budget

The Office of Management and Budget (OMB) is the leading office within the Executive Office of the President of the United States (EOP).  The Chairman of this cabinet-level office is appointed by the President with the consent of the Senate

Formerly, OMB was known as the Bureau of the Budget.  The Bureau of the Budget was established under the Department of the Treasury as per the Budget and Accounting Act, 1921. 

In 1939, the Bureau of the Budget was moved to the Executive Office of the President.  The Bureau of the Budget was reorganized into the OMB in 1970.  Later during 1990s, OMB was further restructured.  At that stage, OMB combined the management and budgetary staff into one. 

OMB assists the President in managing the preparation of the federal budget and supervises the administration of Executive Branch agencies.  Other important roles of OMB are:

  • Preparation of the President’s costs plans;
  • Evaluation of the effectiveness of different agency programs, policies, and procedures;
  • Assessment of competing funding demands among agencies, and sets funding priorities;
  • Ensuring the consistency of agency reports, rules, testimony, and proposed legislation with the President’s Budget and with Administration policies;
  • Management and synchronization of the administration’s procurement, financial management, information, and regulatory policies; and
  • Providing adequate assistance to improve administrative management, development of better performance measures, and co-ordinate mechanisms to reduce unnecessary burdens on the public.

The OMB consists of a Director, Deputy Director, Deputy Director for Management, Administrators of the Office of Information and Regulatory Affairs, Office of Federal Procurement Policy, and Office of Federal Financial Management.  These persons are appointed by the President after confirmation by the Senate.

The four Resource Management Offices of the OMB are led by an Associate Director.  A major share of OMB staff is designated as Program Examiners to the Resource Management Offices.  The Program Examiners are assigned to monitor one or more Federal Agencies or to any Current Issue Area.  These Program Examiners have dual responsibility.  They manage the budgetary issues and also provide expert opinion on all aspects relating to their vested programs.  

The OMB reviews federal agency budget requests every year.  The office provides assistance to Congress for the proper allocation of resources as part of the president’s budget.  It performs detailed program evaluations using the Program Assessment Rating Tool.  The OMB evaluates the proposed regulations, agency testimony, and analyzes pending legislation.  It also supervises the President’s Management Agenda including agency management scorecards.

The OMB is often invited to provide analytical information to any Executive Office staff member.  They also provide important information to the statutory offices such as the Office of Information and Regulatory Affairs, the Office of Federal Procurement Policy, the Office of Federal Financial Management, and the Office of E-Government and Information Technology.

Office of Management Budget Website

Inside Office of Management and Budget