Memorandum From the President on the Anti-Inflation Program

Memorandum for the Heads of Executive Departments and Agencies

There is no more important goal for my Administration than restraining inflation. A crucial part of this effort is managing government more efficiently. With that goal in mind, I am imposing an indefinite limitation on the hiring of Federal civilian workers, as of October 25, 1978.

I ask that you limit the number of new full-time permanent appointments in your agency to not more than 50 percent of the new vacancies occurring after October 25, 1978. In other words, for each two new vacancies, you may appoint one new permanent employee. You may not fill such vacancies as exist on October 24, 1978 except by use of the appointments permitted as a result of new vacancies.

I am instructing the Office of Management and Budget and the Civil Service Commission to issue instructions on this directive. In addition, I delegate authority to the Director of the Office of Management and Budget to grant specific exemptions in a very limited number of cases, when such exemptions are necessary to assure that essential services are provided and fundamental needs are met.

I ask that, as you carry out this directive, you do it in a way that protects the operations in your agency that directly affect the public—for example, Social Security claims processing and check issuance, and veterans' benefit payments. You should absorb as much of the impact as possible in the support and overhead operations of your agency.

It is within your power to determine whether the government succeeds in this part of the battle against inflation. I urge you to do everything possible to assign your staff where the need is greatest, so that vital and basic services may continue uninterrupted. Contracting with firms and institutions outside the government must not be used to circumvent the intent of this directive.

I urge you to give this matter your personal attention and support.

JIMMY CARTER