WASHINGTON—The administration plans to lift the federal hiring freeze that has been in place for the past three months but will continue its push to restructure and downsize the federal government, seen as a central piece of President Donald Trump’s pledge to “drain the swamp.”

“The government reorg is probably the biggest story nobody is talking about,” Mick Mulvaney, the director of the Office of Management and Budget, said in a briefing with reporters on Tuesday. “We’re trying to do something that’s never been done.”

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