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WASHINGTON President Obama announced Friday that he is elevating the head of the Small Business Administration to a Cabinet-level position as he urged Congress to also grant him permission to consolidate that and other federal agencies in an attempt to make government more efficient.
The decision to bring SBA Administrator Karen Mills into the presidents Cabinet does not need congressional approval. However Obamas much broader proposal to merge overlapping agencies does -- the president appealed to Congress Friday to help make that happen.
This is the same sort of authority that every business owner has to make sure that his or her company keeps pace with the times Obama said. Let me be clear I will only use this authority for reforms that result in more efficiency better service and leaner government.
Under the proposal six major trade and commerce agencies with overlapping programs would be merged. The Commerce Department would be among those that would cease to exist.
The proposal dates back to the presidents 2011
State of the Union address in which the president complained of government overlap and red tape that clogs the federal government promising to tackle the problem. He injected a bit of humor into his speech to illustrate the point: The Interior Department is in charge of salmon while theyre in fresh water but the Commerce Department handles them when theyre in saltwater he said to laughter. I hear it gets even more complicated once theyre smoked.
By late that year however officials shied away from forecasting when the president would fulfill his promise.
The White House announced early Friday morning that Obama would seek authority from Congress not granted since the days of Ronald Reagan to reorganize and consolidate portions of the federal government. His first proposal would be to reduce redundancy in the area of trade and commerce.
Should Congress grant the president this streamlining authority each proposal he made would then receive an up-or-down vote from Congress within 90 days.
However the presidents track record with Congress isnt exactly favorable following public disputes over issues like the nations debt ceiling and extending payroll tax cuts. In an increasingly fierce election season the presidents move could be aimed at putting Congress on the defense.
The administration has for months highlighted a We Cant Wait campaign intended to showcase issues that the White House says Congress isnt acting on. The president therefore has been unilaterally taking action; igniting controversy over whether he is overstepping his constitutional authority.
Now the president will lean on the very Congress that hes been lambasting for its inaction.
The administration admits 1000 to 2000 jobs would be lost in the consolidation process should it be approved but officials say the plan would fall in line with the natural course of employee departure. The White House also says the plan could save the government $3 billion over 10 years.
From Congress a spokesman for Sen. Mitch McConnell the top Republican in
the Senate pledged Obamas plan would get a careful review.
The spokesman Don Stewart also said: After presiding over one of the largest expansions of government in history and a year after raising the issue in his last State of the Union its interesting to see the president finally acknowledge that Washington is out of control.
Brendan Buck spokesman for House Speaker John Boehner said Republicans look forward to hearing more about the plan.
Given the presidents record of growing government were interested to learn whether this proposal represents actual relief for American businesses or just the appearance of it. American small businesses are more concerned about this administrations policies than from which building in Washington they originate he said. We hope the president isnt simply proposing new packaging for the same burdensome approach. However eliminating duplicative programs and making the federal government more simple streamlined and business-friendly is always an idea worth exploring.
Fox News Kelly Chernenkoff and The Associated Press contributed to this report.