	Context

The federal government has employed government corporations to achieve policy goals for over a century. Among Members of Congress, the executive branch, and the scholarly community, interest in the government corporation option, and variations on this class of agency, has increased in recent decades. In the typical contemporary Congress, several bills are introduced to establish government corporations. At the time of publication of this report, two bills had been introduced in the 112 th Congress to improve U.S. infrastructure by establishing government corporations— H.R. 404 and S. 652 . Similarly, in the 111 th Congress, government corporations bills included ones that would have created an Indian Development Finance Corporation ( H.R. 1607 ), a Green Bank ( H.R. 1698 ), and a National Infrastructure Development Bank ( H.R. As defined in this report, a federal government corporation is an agency of the federal government, established by Congress to perform a public purpose, which provides a market-oriented product or service and is intended to produce revenue that meets or approximates its expenditures. By this definition, there are 17 entities that are government corporations. Title 5 of the U.S. Code defines a "government corporation" as "a corporation owned or controlled by the Government of the United States" (5 U.S.C. Corporations cover the spectrum from such large, well-known corporations as the United States Postal Service and the Federal Deposit Insurance Corporation to such small, low-visibility corporate bodies as the Federal Financing Bank in the Treasury Department and Federal Prison Industries (UNICOR) in the Justice Department. Government corporations should not be confused with quasi governmental entities, such as government-sponsored enterprises (GSEs). In 1945, partly in response to the proliferation of corporate bodies created for the war effort, Congress passed the Government Corporation Control Act (GCCA; 59 Stat. The act standardized budget, auditing, debt management, and depository practices for corporations. In the absence of a general incorporation act with organizational definitions, how is one to know when a government corporation is the most suitable option, and what criteria should be met before a government corporation is established? Government corporations have been structured so that they are but financial entities whose employees are actually employees of the parent agency (e.g., the Federal Financing Bank in the Department of the Treasury and the Commodity Credit Corporation in the Department of Agriculture). That is, government corporations will continue to be reviewed by the Resource Management Office (RMO) which has responsibility for the functional area most closely associated with the corporation's mission.... OMB does not review government corporations separately from other government organizations that perform similar functions. 2776) established the U.S. Enrichment Corporation as a wholly owned government corporation.
To assist Congress in its oversight activities, this report provides an overview of the government corporation as an administrative model. As defined in this report, a government corporation is a government agency that is established by Congress to provide a market-oriented public service and to produce revenues that meet or approximate its expenditures. By this definition, currently there are 17 government corporations.
In the typical contemporary Congress, several bills are introduced to establish government corporations. At the time of publication of this report, two bills had been introduced in the 112th Congress to improve U.S. infrastructure by establishing government corporations—H.R. 404 and S. 652. Similarly, in the 111th Congress, government corporations bills included ones that would have created an Indian Development Finance Corporation (H.R. 1607 ), a Green Bank (H.R. 1698), and a National Infrastructure Development Bank (H.R. 2521).
The government corporation model has been utilized by the federal government for over a century. Today's government corporations cover the spectrum in size and function from large, well-known entities, such as the U.S. Postal Service and the Federal Deposit Insurance Corporation, to small, low-visibility corporate bodies, such as the Federal Financing Bank in the Department of the Treasury and Federal Prison Industries in the Department of Justice.
The federal government does not possess a general incorporation statute as states do. Each government corporation is chartered through an act of Congress. The use of separate acts to charter each corporation has resulted in wide variance in the legal and organizational structure of government corporations. That said, the Government Corporation Control Act of 1945, as amended, does provide for the standardized budget, auditing, debt management, and depository practices for those corporations listed in the act.
Within the executive branch, no one agency is responsible for the oversight and supervision of government corporations. Neither the House nor the Senate have single committees with the responsibility to oversee all government corporations. Instead, each corporation is overseen by the committee(s) with jurisdiction over its policy area.
Many government corporations, such as the Tennessee Valley Authority, have been established to exist in perpetuity. Other government corporations, such as the U.S. Enrichment Corporation, though, have been designed to serve as transition vehicles to transform from governmental entities into private firms.
Congress at times has found the government corporation an attractive governance option. A well-designed and -operated government corporation does not require annual appropriations because it generates revenues from the provision of goods and services. Moreover, each government corporation may be endowed with the administrative flexibilities required to accomplish its goals while remaining responsive to Congress and the President. Finally, as noted above, the government corporation may be established to serve an enduring purpose or may serve as a vehicle for privatization.
This report will be updated in the event of a significant development.