CHA News Article

Guidance Issued on Regulatory Burden Reduction Executive Order

The Office of Management and Budget has issued the attached interim guidance on implementing President Trump’s executive order to reduce regulatory burden. The document provides guidance on Section 2 of the executive order, which requires federal agencies to offset the incremental costs of new regulations by identifying two regulations to be eliminated for each new regulation issued for federal fiscal year 2017. The guidance clarifies that the executive order applies to “significant regulations,” or regulations that impose an annual economic cost of $100 million or more. The guidance also states that federal spending rules that primarily cause income transfers from tax payers to program beneficiaries, such as Medicare spending rules, are considered transfer rules and not subject to the executive order. However, if the rules also impose requirements — such as reporting requirements — on non-federal entities, the agency would be required to offset those costs.

In addition, the executive order’s application to significant guidance or interpretive documents will be addressed on a case-by-case basis. A number of unanswered questions remain related to how agencies will implement this executive order. CHA continues to analyze the guidance and will notify members of additional information through CHA News; all executive actions can be found on CHA’s Federal Regulatory Tracker.