A great majority of agency actions are informal. It is the exception, not the rule, in both rulemaking and adjudication, that formal procedures must be used. The Administrative Procedure Act (APA) and other laws govern both rulemaking and adjudication. Agencies also perform many functions that fall out-side the rulemaking and adjudication models.

These acts are governed by the rules concerning informal procedures. However, because these informal actions constitute the bulk of administrative work, they have been referred to as the “lifeblood of the administrative process.” In most instances, informal actions are not governed by statute. Accordingly, agencies exercise significant discretion when performing these functions. An agency has discretion when it has the authority to choose between two or more options, often with few limitations.

Naturally, too much discretion can result in unjust, arbitrary decisions. However, too little discretion can result in inflexible public administration, which can be equally unjust. The challenge is to find a satisfactory middle ground. Regrettably, agencies are often given too much discretion and are not adequately checked.