Classifying an Agency

An agency is classified by asking three questions in order: who heads it, how removable are they, and does it charge for services.

Take three organizations. First, an organization headed by a single secretary who serves at the president's pleasure and runs a broad policy area — questions one and two land it: a cabinet department. Second, a five-member commission with staggered terms and a rule that no more than three members share a party; the president's removal hand is deliberately weakened — an independent regulatory agency, and the staggered terms are the tell. Third, an organization that sells postage or train tickets and covers costs from revenue — question three decides: a government corporation. The residual case — headed by an administrator, outside any department, but without the commission armor or the revenue model — is the independent executive agency. Run the questions in order and record which answer decided; the type predicts the president's leverage, which is why the classification exists.