By virtue of and pursuant to the authority vested in me as President of the United States, it is hereby ordered as follows: 1. The Federal Home Loan Bank Board, the Home Owners Loan Corporation, the Federal Savings and Loan System, the Federal Savings and Loan Insurance Corporation, the Federal Housing Administration, the Farm Credit Administration, and the Federal Farm Mortgage Corporation, which have available for expenditure funds, estimates for expenditure of which are not required under the Budget and Accounting Act of 1921, to be submitted to the Bureau of the Budget, are requested to submit to the Director of the Bureau of the Budget, at such times and in such manner as he shall prescribe, estimates of amounts to be expended for each fiscal year from such funds for administrative expenses. The aforesaid agencies and instrumentalities are requested not to incur, from and after September 15, 1935, any obligation for administrative expenses out of any such funds unless estimates for such expenditures shall have been approved by the Director of the Bureau of the Budget. . . .
Executive Order 7126—Placing Additional Agencies under the Supervision of the Bureau of the Budget
Executive Brief • At a Glance
The Federal Home Loan Bank Board, the Home Owners Loan Corporation, the Federal Savings and Loan System, the Federal Savings and Loan Insurance Corporation, the Federal Housing Administration, the Farm Credit Administration, and the Federal Farm Mortgage Corporation, which have available for expenditure funds, estimates for expenditure of which are not required under the Budget and Accounting Act of 1921, to be submitted to the Bureau of the Budget, are requested to submit to the Director of the Bureau of the Budget, at such times and in such manner as he shall prescribe, estimates of amounts to be expended for each fiscal year from such funds for administrative expenses.
Plain-English Translation & Framers' Constitutional Analysis
Early Statesman synthesis distilling legal jargon into practical meaning, statutory anchors, and structural constitutional impacts.
Signed by President Franklin D. Roosevelt on August 5, 1935, this order concerns Placing Additional Agencies under the Supervision of the Bureau of the Budget. The Federal Home Loan Bank Board, the Home Owners Loan Corporation, the Federal Savings and Loan System, the Federal Savings and Loan Insurance Corporation, the Federal Housing Administration, the Farm Credit Administration, and the Federal Farm Mortgage Corporation, which have available for expenditure funds, estimates for expenditure of which are not required under the Budget and Accounting Act of 1921, to be…
Key Directives & Operative Actions
The Federal Home Loan Bank Board, the Home Owners Loan Corporation, the Federal Savings and Loan System, the Federal Savings and Loan Insurance Corporation, the Federal Housing Administration, the Farm Credit Administration, and the Federal Farm Mortgage Corporation, which have available for expenditure funds, estimates for expenditure of which are not required under the Budget and Accounting Act of 1921, to be submitted to the Bureau of the Budget, are requested to submit to the Director of the Bureau of the Budget, at such times and in such manner as he shall prescribe, estimates of amounts to be expended for each fiscal year from such funds for administrative expenses.
The aforesaid agencies and instrumentalities are requested not to incur, from and after September 15, 1935, any obligation for administrative expenses out of any such funds unless estimates for such expenditures shall have been approved by the Director of the Bureau of the Budget. . . .
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 in absence of either a congressional grant or denial of authority, he can only rely upon his own independent powers, but there is a zone of twilight in which he and Congress may have concurrent authority."
James Madison
Separation of Powers & Legislative Primacy
"Power is of an encroaching nature, and it ought to be effectually restrained from passing the limits assigned to it." — Federalist No. 48 (1788)
Madison would view this order with watchful scrutiny. Operating in the 'Zone of Twilight' where Congress is silent, each such directive establishes an administrative precedent that steadily expands the executive perimeter at the expense of legislative primacy.
Alexander Hamilton
The Energetic Executive & Unified Command
"A feeble Executive implies a feeble execution of the government; and a government ill executed, whatever it may be in theory, must be, in practice, a bad government." — Federalist No. 70 (1788)
Hamilton would view this directive as the natural and indispensable functioning of administrative leadership. Without the power to coordinate agencies, manage personnel, and resolve operational ambiguities, the modern presidency would be reduced to an impotent figurehead.
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
Administers commerce or fiscal programs requiring ongoing statutory delegation and legislative oversight.
Executive Scope & Faithfulness
Exercises standard supervisory executive authority to faithfully execute existing statutes.
Federalism & State Sovereignty
Engages state and local partners in cooperative federalism programs.
Due Process & Individual Rights
Focuses on internal governmental operations with no direct impairment of private rights or property.
Youngstown Jacksonian Tier
The order relies on inherent Article II executive discretion, civil service management, or foreign diplomacy where Congress has neither expressly approved nor prohibited action.
This order operates within Justice Jackson’s Zone of Twilight, resting upon concurrent presidential authority or congressional silence.
Referenced By Later Executive Orders (3)
Subsequent presidents who cited, amended, continued, or revoked this directive in later orders.
Scholarly & Legal Citations
Exec. Order No. 7126 (Aug. 5, 1935), https://executiveordersarchive.org/orders/app-executive-order-7126-placing-additional-agencies-under-the-supervision-the-bureau-the.