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REGULATION/LEGISLATION

President Trump signs order requiring regulations to be cut before new ones are issued

Donald Trump
Donald Trump

President Donald Trump signed an executive order Monday that requires federal agencies to cut two existing regulations for any new regulation introduced.

“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,” the order said.

The order also calls for instituting an annual cap on the cost of any new regulations. For fiscal year 2017, which ends Sept. 30, that means that existing regulations would have to be trimmed before new ones are approved, unless they add no cost. The order told agency heads that “the total incremental cost of all new regulations, including repealed regulations, to be finalized this year shall be no greater than zero.”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, 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” of the Office of Management and Budget, the order said.

During the upcoming federal budget process, the OMB director will tell agencies their allowable costs, and “the total incremental cost allowance may allow an increase or require a reduction in total regulatory cost,” the order said.

Some types of rules, such as for national security, would be exempt from the order, and the OMB director could waive others.