Memorandum on the Interagency Working Group on Federalism

Memorandum for the Heads of Executive Departments and Agencies

Subject: Interagency Working Group on Federalism

It is hereby ordered as follows:

Section 1. Establishment. There is established the Interagency Working Group on Federalism (the "Working Group").

Section 2. Membership.

(a) The Working Group shall comprise the following officials:

(1) Assistant to the President for Domestic Policy, who shall serve as Chairman of the Working Group;

(2) Director, Domestic Policy Council, who shall serve as Vice Chairman of the Working Group;

(3) Secretary of the Treasury, or an appropriate designee thereof;

(4) Attorney General, or an appropriate designee thereof;

(5) Secretary of the Interior, or an appropriate designee thereof;

(6) Secretary of Agriculture, or an appropriate designee thereof;

(7) Secretary of Commerce, or an appropriate designee thereof;

(8) Secretary of Labor, or an appropriate designee thereof;

(9) Secretary of Health and Human Services, or an appropriate designee thereof;

(10) Secretary of Housing and Urban Development, or an appropriate designee thereof;

(11) Secretary of Transportation, or an appropriate designee thereof;

(12) Secretary of Energy, or an appropriate designee thereof;

(13) Secretary of Education, or an appropriate designee thereof;

(14) Secretary of Veterans Affairs, or an appropriate designee thereof;

(15) Director of the Office of Management and Budget, or an appropriate designee thereof;

(16) Administrator of the Environmental Protection Agency, or an appropriate designee thereof;

(17) Counsel to the President;

(18) Assistant to the President for Economic Policy;

(19) Assistant to the President, Office of Faith-Based and Community Initiatives, or an appropriate designee thereof;

(20) Assistant to the President and Chief of Staff to the Vice President, or an appropriate designee thereof;

(21) Deputy Assistant to the President for Intergovernmental Affairs; and

(22) Such other officials of executive departments and agencies as the President may, from time to time, designate.

Section 2. Meetings of the Working Group. The Assistant to the President for Domestic Policy or the Director, Domestic Policy Council, may convene and preside over meetings of the Working Group.

Section 3. Functions. The principal functions of the Working Group are to:

(a) Identify initiatives that promote principles of Federalism, such as:

(1) Federal endeavors which may more appropriately be carried out by State or local authorities;

(2) Opportunities for flexible funding streams, regulatory waivers, and other opportunities that increase State and local flexibility, innovation, and accountability;

(3) Measures for improving Federal responsiveness to State and local concerns; and

(4) Enforcement of rules, orders, and procedures that advance Federalism.

(b) Draft a new Executive Order on Federalism, which will require departments and agencies in the executive branch to adhere to principles of Federalism;

(c) Consult, as appropriate, with State and local officials on issues pertaining to Federalism, including, but not limited to, the issuance of the new Executive Order on Federalism; and

(d) Produce a report to the President on recommendations for promoting principles of Federalism no later than 6 months after the issuance of this directive.

GEORGE W. BUSH