Currently there are too many, with too much authority , too little ethics and or oversight, too many budget dollars and too many people in power connected to the industry they regulate.
What could we do?
1) A Flat or Fair tax would downsize the IRS dramatically
2) Only police agencies need weapons issued.
3) Stop the incest at the FDA and severely limit the time anyone serving for the agency has worked in that industry . A lifetime ban on lobbyist becoming for example FDA committee members and insistence that a high percentage of board members have no ties to the industry they regulate and never had
4) Mergers , for example INS, Border Patrol and ICE
5) Disband the ATF. All three of the things they regulate are non-prescription legal , they have a $#@!ty track record and the FBI could take over the few things they do that really matter and possibly DHS too.
6) Look to merge other agencies wherever possible
Ban lobbying to federal agencies
7) Make it legal to lie to a federal agent as lying should not be a crime unless under oath
8) De militarize them unless they are in fact the military
9) Undo there ability to make de-facto laws without congress.
10) And oh yeah, make them stay on budget.
11) Do something about the NSA and stop warrantless spying on Americans
Other suggestions?