PolicyBrief
H.R. 2221
119th CongressMar 18th 2025
Office of Management and Budget Inspector General Act
IN COMMITTEE

The Office of Management and Budget Inspector General Act establishes an Inspector General for the Office of Management and Budget, appointed by the President, to oversee matters specifically assigned to the Office by law.

Emily Randall
D

Emily Randall

Representative

WA-6

LEGISLATION

New Watchdog for White House Budget Office: Bill Creates OMB Inspector General, But Limits Scope

This legislation mandates the creation of a new Inspector General (IG) position specifically for the Office of Management and Budget (OMB), the powerful agency overseeing the federal budget and agency performance. The bill requires the President to appoint this IG within 120 days of the Act becoming law. The core idea is to bring dedicated oversight—think of an internal auditor focused on rooting out waste, fraud, and abuse—to an office with immense influence over government spending and policy.

Putting OMB Under the Microscope

Essentially, this bill amends existing federal law (Title 5 of the U.S. Code) to formally establish the OMB as an entity requiring its own IG, just like many other major federal departments. An Inspector General's office typically functions as an independent watchdog within an agency, conducting audits and investigations to ensure taxpayer dollars are used effectively and operations are run efficiently and ethically. Bringing this function inside OMB aims to increase accountability for an agency that plays a central role in shaping the President's budget proposals and overseeing how all other federal agencies implement policies and manage their resources.

Reading the Fine Print: What Can This IG Actually Investigate?

The real head-scratcher here lies in a specific limitation included in Section 2. The bill states that this new IG's jurisdiction is confined to "matters specifically assigned to the Office by law." This raises practical questions about the actual reach of this watchdog. Does this mean the IG can only look into functions explicitly detailed in statutes, potentially overlooking broader management decisions, regulatory review processes, or other areas where OMB wields significant influence but perhaps without a direct, narrow legislative mandate? For the average person, this matters because OMB decisions impact everything from national spending priorities to the fine print on federal regulations affecting businesses and daily life. An IG is supposed to provide transparency, but if their scope is tightly restricted from the outset, their ability to conduct comprehensive oversight could be significantly hampered.