White House Formalizes Agency Duties to Curb Regulations

Trump’s 2-for-1 reduction plan centralizes enforcement of cost caps.

Ten weeks into the Trump administration, the White House has moved to centralize monitoring of regulatory agencies’ obligations to rework obsolete or burdensome rules to achieve an overall governmentwide reduction in costs imposed on the economy.

Fleshing out President Trump’s Jan. 30 executive order Reducing Regulation and Controlling Regulatory Costs” (EO 13771), Dominic Mancini, acting administrator of the White House Office of Information and Regulatory Affairs, on Wednesday published guidance for implementing the requirement  that agencies remove two rules for every new one introduced.

“The incremental costs associated with EO 13771 regulatory actions must be fully offset by the savings of EO 13771 deregulatory actions,” Mancini wrote. “In addition, agencies planning to issue one or more EO 13771 regulatory actions on or before Sept. 30, 2017, should” for each such action identify the two to be repealed and the resulting cost offsets.

For fiscal 2018, it noted, the director of the Office of Management and Budget is required to set a “cap” on incremental costs of all regulations finalized during that fiscal year—putting each regulatory agency on an “allowance” that can be exceeded only with the director’s approval.

The much-encouraged deregulatory actions suggested are “informal, formal, and negotiated rulemaking; guidance and interpretative documents; some actions related to international regulatory cooperation; and information collection requests that repeal or streamline recordkeeping, reporting, or disclosure requirements,” the guidance said.

Estimates of costs savings for removing regulations are to be done the same way they are for adding regulations “but in reverse,” Mancini wrote. “Only those impacts that have been traditionally estimated as costs when taking a regulatory action should be counted as cost savings when taking an EO 13771 deregulatory action.”

Once agencies are accustomed to working within the caps in the Trump administration’s regulatory plan, they can “bank” cost savings and deregulatory actions should they need them in future years to meet their quota. “Surplus EO 13771 deregulatory actions and costs savings do not expire,” the memo said.

Agencies this year will not be allowed to count as cost savings the repeal of significant proposed rules that were pending from the Obama administration when Trump signed his order.

The two-for-one mandate has been welcomed by many in the business community who point to its successful use in British Commonwealth nations. And Trump’s approach was welcomed by many in Congress. Among those working on broader regulatory reform is Sen. James Lankford, R-Okla., who said soon after Trump acted, “Now is the time to pull back on over-burdensome federal regulations through executive actions, but we must also pursue regulatory improvements through the legislative process. Requiring agencies to identify existing regulations for repeal before they promulgate new regulations is a successful practice to ensure cumulative regulatory burden is properly controlled.”

By contrast, the memorandum seems vague and may not fully reflect the extent to which current regulations were required by statute, said Steven Schooner, the Nash & Cibinic Professor of Government Procurement Law at the George Washington University Law School who worked at the Office of Federal Procurement Policy in the Clinton White House. “A regulation is an action that is promulgated at a certain time, but most regulations tweak existing regulatory systems,” he told Government Executive, so the impact of this executive order remains unclear.

“To the extent that the benchmark—two-for-one reductions—is completely arbitrary, the lack of precision in the guidance suggests, on the one hand, that there's no need to panic, and, on the other hand, there's no reason to expect that the initiative will prove particularly meaningful,” Schooner said. But the administration “has made clear—and OIRA will not mistake the message—that the administration is opposed to new regulation and favors deregulation.”

Amit Narang, regulatory policy advocate for the liberal-leaning Public Citizen, which filed a lawsuit against  the order, said, “The updated guidance does nothing to cure the profound legal issues.”

“The guidance makes clear that the focus of the executive order remains squarely on regulatory costs, instead of maximizing the benefits of regulations to society,” Narang said. “This is a deeply flawed approach that rigs our regulatory process against protecting the public and in favor of minimizing costs to corporate special interests.”

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.