Suspending reality, if I had absolute authority to change things:
The TSA would be funded privately by the airlines.
The actual DHS is gone. Any major responsibilities they have can be given to the FBI counter-terrorism depts.
The DNI is gone as well. That was political retribution against the CIA anyway. Was never necessary. The information aggregation parts of the DNI would become a dept in the CIA.
The pentagon's operating budget I would take an axe too. I'd really trim the fat on the amenities that high ranking paper pushers get.
PMC would be reduced by 75% across the board. Military recruitment would skyrocket to fill the gap.
Wholesale reductions in IRS staff after simplification of the tax code (I actually like the idea of a flat tax.)
No more corporate welfare.
Cost plus would be gone from about 90% of govt contracts. Government contractors can now either get paid for their work\labor or maintain the IP on development they were tasked to do - not both.
The Labor Department and Department of Labor would be collapsed into a single entity.
20% reduction in presidential, cabinet, and congressional pay. If I really had my druthers, I'd tie Senatorial pay to the median income of their state.
Massive reductions in troops and bases abroad.
I could come up with more if I thought on it some, but there are some ideas.
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