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A flow chart showing the multiple levels of the Department of State. Under Secretary of State are seven direct reports. There are also six undersecretaries, and each have several direct reports.
The multiple levels of the Department of State each work in a focused capacity to help the entire department fulfill its larger goals. (credit: modification of work by the U. S. Department of State)

Independent executive agencies and regulatory agencies

Like cabinet departments, independent executive agencies report directly to the president, with heads appointed by the president. Unlike the larger cabinet departments, however, independent agencies are assigned far more focused tasks. These agencies are considered independent because they are not subject to the regulatory authority of any specific department. They perform vital functions and are a major part of the bureaucratic landscape of the United States. Some prominent independent agencies are the Central Intelligence Agency (CIA), which collects and manages intelligence vital to national interests, the National Aeronautics and Space Administration (NASA), charged with developing technological innovation for the purposes of space exploration ( [link] ), and the Environmental Protection Agency (EPA), which enforces laws aimed at protecting environmental sustainability.

A photo of an astronaut on the moon standing next to the American flag.
While the category “independent executive agency” may seem very ordinary, the actions of some of these agencies, like NASA, are anything but. (credit: NASA)

An important subset of the independent agency category is the regulatory agency. Regulatory agencies emerged in the late nineteenth century as a product of the progressive push to control the benefits and costs of industrialization. The first regulatory agency was the Interstate Commerce Commission (ICC), charged with regulating that most identifiable and prominent symbol of nineteenth-century industrialism, the railroad. Other regulatory agencies, such as the Commodity Futures Trading Commission, which regulates U.S. financial markets and the Federal Communications Commission, which regulates radio and television, have largely been created in the image of the ICC. These independent regulatory agencies cannot be influenced as readily by partisan politics as typical agencies and can therefore develop a good deal of power and authority. The Securities and Exchange Commission (SEC) illustrates well the potential power of such agencies. The SEC’s mission has expanded significantly in the digital era beyond mere regulation of stock floor trading.

Government corporations

Agencies formed by the federal government to administer a quasi-business enterprise are called government corporation     s . They exist because the services they provide are partly subject to market forces and tend to generate enough profit to be self-sustaining, but they also fulfill a vital service the government has an interest in maintaining. Unlike a private corporation, a government corporation does not have stockholders. Instead, it has a board of directors and managers. This distinction is important because whereas a private corporation’s profits are distributed as dividends, a government corporation’s profits are dedicated to perpetuating the enterprise. Unlike private businesses, which pay taxes to the federal government on their profits, government corporations are exempt from taxes.

Questions & Answers

the first Republic political parties
Baby Reply
how call government system in Zambia
esenam Reply
was it Britain that colonialised usa
Temiloluwa Reply
what is Electoral malpractice
Bailey Reply
Clifford constitution of 1922
ABAH Reply
to this textbook which countries have the highest rates of execution?
michael Reply
What are the advantages and disadvantages of having so many levels of subnational governments in the United States? Explain
Nicole Reply
to help in protecting the right of the citizens, in safety purpose also if not many tribulation war and conflict in between the Nations and perhaps the citizens that is we really needs them.
Emmanuel
What are the advantages
maureen
what were the initial issues that led to the introduction of legislation
Benedicta Reply
Do the consideration and bill of rights protect the life and liberty of all Americans?
Benedicta
yes
Emmanuel
yeah
Akuchie
how do we answer government questions
Comfort Reply
by following all the due processes
Emmanuel
how many types of pre_ colonial political system do we have in Nigeria
Israel Reply
3
nkama
we 3 which are yoruba,hausa, Igbo
Israel
3
Ibrahim
3
Akuchie
opening day in the house. what is the speaker's first duty
Gabriel Reply
what is bill of right?
Dyutoe Reply
first 10 amendments to the Constitution
Ruthie
a bill of right in the United States,bill of right is the first tan amendment to the Constitution.
Israel
what is Electoral malpractice
Bailey
what prevented the equal rights Amendment from being ratified?
Darhel Reply
why some countries adopts written constitution
Paschal Reply
because it is documented
Comfort
what part of our government is based on parliament
SonIa Reply
what important political idea came from Thomas Hobbes
SonIa
Thomas Hobbes who is he
SonIa
English philosopher, considered to be one of the founders of modern  political philosophy
Akuchie
he was a guy who supported a strong government, because people in their natural state are dangerous and feral, and we need an Uber government to protect us from ourselves
Connor

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Source:  OpenStax, American government. OpenStax CNX. Dec 05, 2016 Download for free at http://cnx.org/content/col11995/1.15
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