By virtue of the authority vested in me as President by the Constitution of the United States of America, in order to provide coordinated Federal economic adjustment assistance necessitated by changes in Department of Defense activities, it is hereby ordered as follows: SECTION 1. Functions of the Secretary of Defense. (a) The Secretary shall, through the Economic Adjustment Committee, design and establish an Economic Adjustment Program to assist in the alleviation of serious economic and social impacts that result from major Defense realignments. The program shall provide for: 1. Identification of Defense-related impact problems of States, metropolitan areas, or communities that require assistance. 2. Preparation of development strategies and action plans to coordinate Federal, State and local economic adjustment efforts. 3. Strengthened and uniform economic impact analysis and analysis of community requirements for Federal economic adjustment resources, prior to base realignment action. 4. Timely and earliest possible consultation and cooperation with local, State and Federal officials concerning impact problems and coordinated interagency and intergovernmental adjustment assistance. 5. A clearinghouse service to exchange information among Federal, State and local officials involved in the resolution of community adjustment problems; e.g., previous studies, technical information, and sources of public and private financing. 6. Application of consistent policies, practices, and procedures in the administration of Federal programs that are utilized to assist Defense impact communities. 7. Encouragement of effective State and regional cooperation and concerted involvement of public interest groups and private sector organizations in Defense adjustment activities. 8. Development, with representatives of appropriate agencies, of uniform criteria for the determination .of social economic impact of a particular realignment. 9. Identification and strengthening of existing agency mechanisms to better coordinate employment opportunities for displaced agency personnel. 10. Increased attractiveness to the private sector of interim usage of lands and buildings and ways of streamlining property disposal procedures to enable impacted communities to acquire base property for job-generation purposes as military activities phase down. (b) The Secretary of Defense shall ensure that sufficient resources and personnel are allocated to carry out these functions. SEC. 2. Economic Adjustment Committee. (a) The Economic Adjustment Committee is hereby continued. (b) The Committee shall be composed of the following, or a principal deputy, and such others as the President may designate: (1) The Secretary of Defense, who shall be the Chairman of the Committee. (2) The Secretary of Agriculture. (3) The Secretary of Commerce. (4) The Secretary of Energy. (5) The Secretary of Health, Education, and Welfare. (6) The Secretary of Housing and Urban Development. (7) The Secretary of the Interior. (8) The Secretary of Labor. (9) The Secretary of Transportation. (10) The Attorney General. (11) The Chairman, Council of Economic Advisers. (12) The Director of the Office of Management and Budget. (13) The Director of the United States Arms Control and Disarmament Agency. (14) The Administrator of the Environmental Protection Agency. (15) The Director of the Community Services Administration. (16) The Administrator of General Services. (17) The Administrator of the Small Business Administration. (18) The Chairman of the United States Civil Service Commission. (c) The Committee shall advise, assist, and support the Secretary of Defense's Economic Adjustment activities. (d) The Secretary of Defense shall provide all necessary administrative support for the Committee. SEC. 3. Responsibility of Executive Agencies. (a) The head of each agency represented on the Economic Adjustment Committee shall designate a permanent representative to: (1) serve as liaison with the Secretary of Defense's economic adjustment staff, (2) coordinate agency support and participation in assistance projects, and (3) assist in resolving community impact problems. (b) All Executive agencies shall: (1) Support, to the extent permitted by law, the economic adjustment assistance activities of the Secretary of Defense. Such support shall include the use and application of personnel, technical expertise, legal authorities, and available financial resources to the extent required to provide a coordinated Federal response to the needs of individual communities, States, and regions adversely affected by necessary Defense changes. (2) Afford priority consideration to community requests for Federal technical assistance, financial resources, excess or surplus property, or other requirements that are part of a comprehensive plan issued by the Economic Adjustment Committee. SEC. 4. Construction. Nothing in this Order shall be construed as subjecting any function vested by law in, or assigned pursuant to law to, any agency or head thereof to the authority of any other agency or officer or as abrogating or restricting any such function in any manner. JIMMY CARTER The White House, March 27, 1978. [Filed with the Office of the Federal Register, 1:15 p.m., March 28, 1978]
Executive Order 12049—Defense Economic Adjustment Programs
Executive Brief • At a Glance
The Secretary shall, through the Economic Adjustment Committee, design and establish an Economic Adjustment Program to assist in the alleviation of serious economic and social impacts that result from major Defense realignments.
Plain-English Translation & Framers' Constitutional Analysis
Early Statesman synthesis distilling legal jargon into practical meaning, statutory anchors, and structural constitutional impacts.
Signed by President Jimmy Carter on March 27, 1978, this order concerns Defense Economic Adjustment Programs. Functions of the Secretary of Defense. (a) The Secretary shall, through the Economic Adjustment Committee, design and establish an Economic Adjustment Program to assist in the alleviation of serious economic and social impacts that result from major Defense realignments. The program shall provide for: 1.
Key Directives & Operative Actions
The Secretary shall, through the Economic Adjustment Committee, design and establish an Economic Adjustment Program to assist in the alleviation of serious economic and social impacts that result from major Defense realignments.
Identification of Defense-related impact problems of States, metropolitan areas, or communities that require assistance. 2.
The Secretary of Defense shall ensure that sufficient resources and personnel are allocated to carry out these functions.
The Economic Adjustment Committee is hereby continued.
Constitutional & Societal Entities Impacted
Policy Areas & Topics
The Framers' Constitutional Council
1787 PrismEvaluating this order against the constitutional debates of 1787 and the limits of Article II executive power.
"When the President acts pursuant to an express or implied authorization of Congress, his authority is at its maximum, for it includes all that he possesses in his own right plus all that Congress can delegate."
James Madison
Separation of Powers & Legislative Primacy
"The constitutional magistracy was designed not to invent policy, but to be the faithful instrument of the laws passed by the people's representatives." — Speech in the First Congress (1789)
Madison would approve the structural posture of this order. The President acts strictly in subordination to statutory authority granted under Article II, Section 3 ("take Care that the Laws be faithfully executed"). The checks and balances hold firm because the policy origin remains with the legislature.
Alexander Hamilton
The Energetic Executive & Unified Command
"The direction of war implies the direction of the common strength; and the power of directing and employing the common strength must be under the direction of the single hand of the Executive." — Federalist No. 74 (1788)
Hamilton would forcefully champion executive discretion here. For foreign entanglements, commerce defense, and national security, deliberative assemblies are too slow and faction-ridden. A unified, energetic Executive exercising swift command is precisely what the Philadelphia Convention intended for national preservation.
George Mason
Bill of Rights, Due Process & 10th Amendment
"The president will be surrounded by flatterers and sycophants... and the great powers of the executive will gradually absorb the liberties of the people." — Cato IV (Anti-Federalist, 1787)
The Anti-Federalist prism advises continuous democratic vigilance. Even routine administrative directives aggregate centralized federal power away from town halls and state assemblies toward a distant executive apparatus.
Five Measurable "Constitutional Friction" Dimensions
An objective audit measuring potential separation-of-powers tension against the United States Constitution and established Supreme Court doctrine.
Legislative Encroachment & Purse
Operates within delegated statutory execution without modifying legislative appropriations or taxing powers.
Executive Scope & Faithfulness
Directs internal executive branch machinery, agency workflows, and federal personnel.
Federalism & State Sovereignty
Creates friction with the Tenth Amendment by conditioning state grants, mandating local compliance, or preempting state police powers.
Due Process & Individual Rights
Applies regulatory or compliance standards to private contractors or commercial entities.
Youngstown Jacksonian Tier
The President operates strictly as the constitutional Chief Executive, carrying out policy established by Congress with strong statutory backing.
This order operates within Justice Jackson’s Zone of Twilight, resting upon concurrent presidential authority or congressional silence.
Referenced By Later Executive Orders (1)
Subsequent presidents who cited, amended, continued, or revoked this directive in later orders.
Scholarly & Legal Citations
Exec. Order No. 12,049 (Mar. 27, 1978), https://executiveordersarchive.org/orders/app-executive-order-12049-defense-economic-adjustment-programs.