Reducing Regulation and Controlling Regulatory Costs
Feb 3, 2017
Signed by: Donald Trump
Signed on: Jan 30, 2017
Published on: Feb 3, 2017
Feb 3, 2017
Signed by: Donald Trump
Signed on: Jan 30, 2017
Published on: Feb 3, 2017
Summary
Makes government agencies get rid of two old rules for every new one they make and keeps the total cost of new rules at zero for the year 2017.
What problem does this solve?
The government creates many rules that cost people and businesses money to follow, and this spending needs to be controlled. This order forces agencies to cut old rules when they add new ones and puts a cap on the total cost of new rules to manage this spending.
What does this order do?
Two-for-one regulation rule
Requires that whenever an agency creates a new regulation, it must identify at least two existing regulations to be removed.
Zero-cost cap for fiscal year 2017
Directs that the total added cost of all new regulations for fiscal year 2017 must be zero or less.
Reference
Text:
Section:
Header:
Annual Regulatory Cost Submissions to the Office of Management and Budget
Annual regulatory cost budget
Requires the Director of the Office of Management and Budget (OMB) to give each agency a total budget for the costs of new rules each year.
Exemptions from the rule
Does not apply to rules related to military, national security, foreign affairs, or internal agency management and personnel.
OMB guidance on implementation
Tasks the Director of the OMB with providing guidance to agencies on how to measure costs, identify rules for removal, and manage the new process.
Who does this affect?
- Federal agencies
- Businesses
What is the real world impact?
•
Reduces the financial burden of federal rules
Aims to lower the costs that businesses and people have to pay to follow government regulations by limiting the number and cost of new rules.
•
May weaken public protections
Could lead to the removal of important rules that protect health, safety, or the environment, as agencies may prioritize cutting costs over keeping beneficial regulations.
When does this start?
This order takes effect immediately, with specific cost caps and reporting requirements starting in fiscal year 2017.
Fiscal Year 2017 Regulatory Cost Cap
For fiscal year 2017, the total incremental cost of all new regulations must be no greater than zero.
Reference
Text:
Section:
Header:
Annual Regulatory Cost Submissions to the Office of Management and Budget
Fiscal Year 2018 Regulatory Plans
Beginning with plans for fiscal year 2018, agencies must identify the specific regulations they will remove to offset the costs of new ones.