Trump would gain sweeping power under the new Senate reconciliation bill to restructure government agencies and dismiss federal employees at his discretion.

The Senate's proposed budget reconciliation package has stirred controversy, with two major federal employee organisations expressing their opposition to certain provisions. The International Federation of Professional and Technical Engineers and the National Active and Retired Federal Employees Association have voiced their concerns, claiming these provisions attack the federal government and the workforce that serves the American public.

At the heart of the controversy is a provision that would re-establish the President's reorganization authority. If enacted as currently written, this measure could short-circuit lawsuits challenging the Trump administration's plans to issue reductions in force across government. Matt Biggs, President of the International Federation of Professional and Technical Engineers, stated that the measure would effectively green light the "dismantling" of government agencies.

John Hatton, staff vice president for policy and programs at the National Active and Retired Federal Employees Association, criticised the provision as granting the White House "carte blanche" to gut the federal workforce. His statement suggests that the reorganization of government provision in the Senate's proposed budget reconciliation package is radical in its abrogation of power.

The opposition from these organisations suggests significant concern within the federal workforce about the potential impact of the reorganization of government provision. Matt Biggs, in particular, called on all lawmakers in Congress to oppose these budget reconciliation provisions, stating that it's not just about standing up for union members, but for all Americans.

The provision requires the White House to submit an annual report of planned reorganizational moves, but exempts the administration from most provisions of the federal law governing such actions. This could potentially lead to a weakening of congressional control and oversight, as the proposed reorganization of federal agencies without congressional oversight would significantly increase executive power.

The Senate Republicans' proposed budget reconciliation package, which allocates $100 million to the White House for the reorganization of federal agencies, was authored by Senate Republicans. If passed, it would allow President Trump to reorganize federal agencies as he sees fit. Matt Biggs also said that the inclusion of the Reorganizing Government Act of 2025 in the reconciliation bill would be Congress surrendering its authority and deliberative process to a president who is recklessly dismantling the government, harming public services, and wasting government resources.

John Hatton expressed concern that the provision would indicate a very weak Congress and a very weak Senate if they pass a version of the bill that includes this provision. The 10-year reorganization authority could not be used by a future Democratic president to rebuild federal agencies, due to language requiring reorganizations to be cost-neutral and not result in an increase in the number of federal agencies.

The administration plans to issue a Reduction in Force (RIF) to 3% of National Archives and Records Administration staff at the end of June, as NARA is not covered by an order halting their implementation at nearly two-dozen agencies. Additionally, the legislation proposes making future federal employees pay more towards their retirement benefits, particularly if they wish to retain protections against being unfairly disciplined or fired.

This reorganization authority expired in 1984 and has not been renewed since, despite multiple administrations requesting it. Before 1984, the President had reorganization authority to identify and reorganize wasteful, unnecessary, or duplicative portions of the federal government. However, the current proposal has raised concerns about the potential impact on the federal workforce and public services.