OMB releases guidance for more cuts, 'bold reform'

The White House is furthering its efforts to reorganize the federal government, reduce the workforce and streamline operations.

Office of Management and Budget Director Mick Mulvaney released a memo Friday saying agency spending proposals for fiscal 2019 should reflect President Trump's executive order to reorganize the government.

He said the White House would pay special attention to agencies that lay out bold reform proposals. "Agencies are requested to identify additional investments in effective programs that further support their mission and fill a clear Federal role," said the memo.

"The FY 2019 budget process will give special consideration to bold reform or reorganization proposals that have the potential to dramatically improve effectiveness and efficiency of government operations," it said.

The goal is to cut costs and implement the "fiscal restraint" needed to achieve 3 percent economic growth over time, Mulvaney wrote.

While the Trump administration's fiscal 2018 request prioritizes defense spending, fiscal 2019 will provide the opportunity to present a comprehensive reform plan, he said. Agency submissions are due to OMB by Sept. 11, 2017.

Mulvaney directed agencies to "maintain sufficient funding for presidential priorities, while closely scrutinizing other spending to ensure it reflects a proper Federal role and that taxpayer dollars are spent wisely."

Agencies are also required to submit a draft strategic plan covering fiscal 2018 through fiscal 2022, a draft fiscal 2019 performance plan, and priority goals covering the fiscal 2018 through fiscal 2019 cycle.

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