On Tuesday, January 30, 3017, President Donald J. Trump issued an Executive Order entitled, Presidential Executive Order on Reducing Regulation and Controlling Regulatory Costs. The Executive Order focuses on eliminating two prior regulations for every new regulation that is issued and managing the costs of planned regulations through a budgeting process.
The repeal of two existing regulations for every newly-issued regulation is in place for the remainder of fiscal year (FY) 2017 (through September 30, 2017). The Order also sets the
total incremental cost of all new regulations, including repealed regulations, to be finalized this fiscal year at zero.
The Office of Management and Budget (OMB) is charged with providing guidance to federal agencies on how to implement this Executive Order, including: processes for standardizing the measurement and estimation of regulatory costs; standards for determining what qualifies as new and offsetting regulations; and, standards for determining the costs of existing regulations that are considered for elimination.
OMB also has the authority to 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. The Executive Order states that no regulations exceeding the agency's total incremental cost allowance will be permitted in that fiscal year.
There are several exemptions for regulations included in the Executive Order, but it will ultimately be up to OMB to determine what regulations are included in the purview of this new directive.