Spending levels can be affected by administrative actions such as rule-making that sets eligibility criteria or payment amounts. Image: Artem Avetisyan/Shutterstock.com
By: FEDweek StaffGAO has seen little impact from new “pay as you go” reporting requirements related to the impact of rule-making on agency spending that were included in the mid-year law suspending the federal debt ceiling until 2025.
Under that so-called PAYGO provision, agencies are to identify increases in direct spending—also referred to as mandatory spending—that may result from major federal rule-making. The GAO noted that mandatory spending, such as through benefit programs, is generally governed by criteria contained in law, but spending levels can be affected by administrative actions such as rule-making that sets eligibility criteria or payment amounts.
The recent law requires that if agencies determine that the impact of a rule-making is above certain thresholds, they are to identify actions that could offset it, although that law does not itself require them to carry out such changes, or request a waiver from OMB.
In a review ordered by that law, GAO identified 28 rules issued from its enactment through October that could qualify as major. However, “OMB officials said they granted two waivers and the requirements didn’t seem to apply to the other 26 rules . . . OMB has not received a written notice or written opinion and estimate for any significant rule finalized after June 3, 2023, according to OMB staff,” the GAO said.
House Budget Committee chairman Rep. Jodey Arrington, R-Texas, said that his committee will follow up on the report.
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