The White House
Office of the Press Secretary
For Immediate Release January 30, 2017
Executive Order: Reducing Regulation And Controlling Regulatory Costs
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REDUCING REGULATION AND CONTROLLING REGULATORY COSTS
By the authority vested in me as President by the Constitution and the
laws of the United States of America, including the Budget and
Accounting Act of 1921, as amended (31 U.S.C. 1101 et seq.),
section 1105 of title 31, United States Code, and section 301 of title
3, United States Code, it is hereby ordered as follows:
Section 1. Purpose.
It is the policy of the executive branch to be
prudent and financially responsible in the expenditure of funds, from
both public and private sources. In addition to the management of the
direct expenditure of taxpayer dollars through the budgeting process, it
is essential to manage the costs associated with the governmental
imposition of private expenditures required to comply with Federal
regulations. Toward that end, it is important that for every one new
regulation issued, at least two prior regulations be identified for
elimination, and that the cost of planned regulations be prudently
managed and controlled through a budgeting process.
Sec. 2. Regulatory Cap for Fiscal Year 2017.
(a) Unless prohibited
by law, whenever an executive department or agency (agency) publicly
proposes for notice and comment or otherwise promulgates a new
regulation, it shall identify at least two existing regulations to be
(b) For fiscal year 2017, which is in progress, the heads of all
agencies are directed that the total incremental cost of all new
regulations, including repealed regulations, to be finalized this year
shall be no greater than zero, unless otherwise required by law or
consistent with advice provided in writing by the Director of the Office
of Management and Budget (Director).
(c) In furtherance of the requirement of subsection (a) of this
section, any new incremental costs associated with new regulations
shall, to the extent permitted by law, be offset by the elimination of
existing costs associated with at least two prior regulations. Any
agency eliminating existing costs associated with prior regulations
under this subsection shall do so in accordance with the Administrative
Procedure Act and other applicable law.
(d) The Director shall provide the heads of agencies with guidance on
the implementation of this section. Such guidance shall address, among
other things, processes for standardizing the measurement and estimation
of regulatory costs; standards for determining what qualifies as new
and offsetting regulations; standards for determining the costs of
existing regulations that are considered for elimination; processes for
accounting for costs in different fiscal years; methods to oversee the
issuance of rules with costs offset by savings at different times or
different agencies; and emergencies and other circumstances that might
justify individual waivers of the requirements of this section. The
Director shall consider phasing in and updating these requirements.
Sec. 3. Annual Regulatory Cost Submissions to the Office of Management and Budget.
(a) Beginning with the Regulatory Plans (required under Executive
Order 12866 of September 30, 1993, as amended, or any successor order)
for fiscal year 2018, and for each fiscal year thereafter, the head of
each agency shall identify, for each regulation that increases
incremental cost, the offsetting regulations described in section 2(c)
of this order, and provide the agency's best approximation of the total
costs or savings associated with each new regulation or repealed
(b) Each regulation approved by the Director during the Presidential
budget process shall be included in the Unified Regulatory Agenda
required under Executive Order 12866, as amended, or any successor
(c) Unless otherwise required by law, no regulation shall be issued by
an agency if it was not included on the most recent version or update
of the published Unified Regulatory Agenda as required under Executive
Order 12866, as amended, or any successor order, unless the issuance of
such regulation was approved in advance in writing by the Director.
(d) During the Presidential budget process, the Director shall
identify to agencies a total amount of incremental costs that will be
allowed for each agency in issuing new regulations and repealing
regulations for the next fiscal year. No regulations exceeding the
agency's total incremental cost allowance will be permitted in that
fiscal year, unless required by law or approved in writing by the
Director. The total incremental cost allowance may allow an increase or
require a reduction in total regulatory cost.
(e) The Director shall provide the heads of agencies with guidance on the implementation of the requirements in this section.
Sec. 4. Definition.
For purposes of this order the term "regulation"
or "rule" means an agency statement of general or particular
applicability and future effect designed to implement, interpret, or
prescribe law or policy or to describe the procedure or practice
requirements of an agency, but does not include:
(a) regulations issued with respect to a military, national security, or foreign affairs function of the United States;
(b) regulations related to agency organization, management, or personnel; or
(c) any other category of regulations exempted by the Director.
Sec. 5. General Provisions.
(a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or
benefit, substantive or procedural, enforceable at law or in equity by
any party against the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any other person.
DONALD J. TRUMP
THE WHITE HOUSE,
January 30, 2017.