President Donald J. Trump issued an Executive Order that (i) imposes a "total incremental cost allowance" on each executive agency, and (ii) requires two federal regulations to be rescinded for every new regulation implemented. The Executive Order is intended to place a ceiling on the cost of regulations and reduce overall levels of regulation.
The Executive Order established that "[u]nless 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notice and comment or otherwise promulgates a new regulation, it shall identify at least two existing regulations to be repealed." The Executive Order requires any incremental costs associated with new regulations to be offset by the elimination of existing costs associated with at least two prior regulations. The Executive Order directed agency heads to ensure that the "total incremental cost of all new regulations, including repealed regulations, to be finalized this year shall be no greater than zero, unless otherwise required by law or consistent with advice provided in writing by the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."
The Executive Order mandated that each agency head's regulatory plans for fiscal year 2018 and beyond must (i) identify each regulation that increases incremental costs, and (ii) provide that agency's "best approximation of the total costs or savings associated with each new or repealed regulation." The Executive Order noted that these requirements do not apply to regulations issued with respect to (i) military, national security and foreign affairs, (ii) agency organization, management or personnel, or (iii) any other category of regulations exempted by the Director of the Office of Management and Budget.
White House Chief of Staff Reince Priebus asked regulatory agencies to freeze any pending regulatory actions "in order to ensure that the President's appointees or designees have the opportunity to review any new or pending regulation."
House Republican leaders "cautioned" all federal executive and independent agencies against "finalizing pending rules or regulations in the Administration's last days."
A number of sources offer guidance to readers on developments in financial regulation that could occur during the president-elect's coming administration. Those sources include the Donald J. Trump website, the Republican Platform 2016 document and the proposed CHOICE Act.
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