Executive Order Requires Two Regulations Repealed for Every New Regulation Proposed

President Donald Trump issued an Executive Order (EO) on January 30 that requires federal agencies to repeal two existing regulations if a new regulation is proposed. In addition, agencies must calculate the incremental cost of all new regulations and repealed regulations so that there is no net cost due to regulatory action during a given year. The director of the Office of Management and Budget (OMB) is now required to establish standards for determining what qualifies as new and offsetting regulations and for measuring and estimating regulatory costs. Comments on the interim guidance on implementing the EO should be provided to reducingregulation@omb.eop.gov by February 10, 2017.

When the Administration prepares its budget request to Congress every year, the OMB director must allot each agency a total amount of allowable incremental regulatory costs for the upcoming fiscal year. No agency will be allowed to exceed the cap assigned by the OMB director.

In order to repeal a regulation, the “Administrative Procedures Act” requires an agency to undertake the same public notice and comment procedures required to propose a new regulation, according to a Congressional Research Service article dated November 21, 2016, at: http://bit.ly/2jBjuty

EO 13771 is at: http://bit.ly/2kx0TlY  

A memorandum of interim guidance implementing Section 2 of the EO is available at: http://bit.ly/2kqp6rA