Explain how the power of administrative agencies is limited by the executive branch of the government

Question

What will be an ideal response?

Answer 1

The power of administrative agencies is limited by the executive branch through: a) the power of the president to appoint the heads of the agencies; b) the power of the Office of Management and Budget (OMB) to recommend a fiscal-year budget for each agency; and c) presidential executive orders.
The president not only appoints the head of each administrative agency, but also designates some lower-level heads of departments and divisions that do not come under the federal civil service system. Naturally, presidential appointees tend to have the same philosophical bent as the chief executive and are often of the same party. In this way, the president gains some influence over both independent and executive agencies.
Presidents exercise even greater influence over executive agencies through the budget process and executive orders. In 1981, for instance, President Reagan signed Executive Order 12291, which requires executive agencies to perform a cost-benefit analysis before promulgating a major federal regulation. A major federal regulation is one that will cost businesses $100 million or more to comply with. To take another example, this one concerning the budget process, Executive Order 12498, signed in 1985 (also by President Reagan), extended the OMB's powers so that it now has authority over "pre-rulemaking action" by executive agencies. This executive order requires civilian government agencies to submit a Draft Regulatory Program listing all pre-rulemaking and other significant actions they intend to take in a fiscal year. These Draft Regulatory Programs become part of the administration's Regulatory Program. Once that program is published by the OMB, no agency may deviate from the plan without approval from the OMB unless forced to do so by the courts.
These executive orders affect executive administrative agencies. However, independent administrative agencies have been requested to comply voluntarily with these orders, and some have done so. A bill passed by the House of Representatives and the Senate in 1995 applies to both executive and independent administrative agencies.