Promoting Efficient Spending (E.O. 13589)

Summary

Tells government groups to spend less money on things like travel, computers, printing, and cars to save taxpayer money and reduce waste.

What problem does this solve?

The federal government was spending too much on internal operations, leading to waste. This order requires agencies to cut these administrative costs by 20% by setting clear targets and focusing on specific areas for savings.

What does this order do?

Requires a 20% reduction in administrative costs

Directs each federal agency to create a plan to cut combined administrative costs by at least 20 percent below 2010 levels, with the goal to be met in Fiscal Year 2013.

Reduces government travel

Encourages agencies to use alternatives to travel, such as teleconferencing, and to use government-owned buildings for conferences to save money.

Limits employee technology devices

Requires agencies to limit the number of cell phones, laptops, and other IT devices given to employees and to stop paying for unused equipment or services.

Decreases printing

Encourages agencies to stop printing hard copy documents and to provide information electronically whenever possible.

Limits executive transportation

Builds on a previous memo about the federal fleet by directing agencies to limit the use of special transportation for executives.

Bans most promotional items

Tells agencies to limit buying promotional items like plaques, clothing, and other commemorative products, especially when they are not cost-effective.

Appoints senior officials for travel oversight

Requires each agency to designate a senior-level official who is responsible for making sure spending on travel and conferences is efficient.

Who does this affect?

Federal government agencies
Federal employees

What is the real world impact?

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Increases government efficiency

Aims to make the government more responsible with taxpayer money by cutting unnecessary administrative costs and waste across all federal agencies.

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May hinder agency operations

Critics might argue that strict, across-the-board cuts to travel, technology, and other resources could make it harder for government employees to do their jobs effectively.

When does this start?

This order sets several deadlines for federal agencies to reduce spending, starting from its signing date of November 9, 2011.

Agency cost-cutting plans due

Agencies must submit their plans for reducing costs to the Office of Management and Budget within 45 days of this order, by approximately December 24, 2011.

20% cost reduction goal

Agencies must achieve the 20 percent reduction in administrative costs during Fiscal Year 2013.