Federal Manager's Daily Report

OMB in memo M-17-21 has issued guidance to agencies in carrying out President Trump’s executive order requiring that when an agency issues a new regulation, it must identify at least two existing ones to be repealed, and that the total incremental cost to the public of new regs be offset by savings from eliminating prior ones.

The guidance, in question and answer format, states that agencies must continue to comply with all prior requirements regarding rule-making, including that they “assess and consider both the benefits and costs of regulatory actions, including deregulatory actions, when making regulatory decisions, and issue regulations only upon a reasoned determination that benefits justify costs.”

It says that under the order, a covered “regulatory action” is any that imposes net new costs; also covered is a “significant guidance document” which might have a similar impact to a regulation, although excluding policy decisions such as internal government legal advisory opinions.

The guidance also covers topics such as what qualifies as a deregulatory action; which types of regulations are subject to the cost offset; treatment of interim rules, and more.