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EO 12291Executive OrderReagan · R Quiet signal

Executive Order 12291

Federal Regulation

This executive order establishes a centralized regulatory review process requiring federal agencies to conduct cost-benefit analyses for major regulations and submit them to the Office of Management and Budget for review before publication. It creates the framework for presidential oversight of rulemaking that would influence regulatory policy for decades.

46 FR 13193
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Impact dates

  1. Bi-annual regulatory agendas published in October and April each year

  2. Preliminary RIA and notice of proposed rulemaking due to Director (60 days before publication)

  3. OMB deemed review concluded for preliminary RIA/proposed rulemaking (60 days)

  4. President's January 29, 1981 postponement memorandum expires

  5. Agencies report to Director before promulgating pending proposed rules as final (30 days prior)

  6. Final RIA and final rule due to Director (30 days before publication as final rule)

  7. OMB deemed review concluded for final RIA/final rule (30 days)

  8. Agencies report to Director on pending rules not being reconsidered (15 days before effective date)

  9. Agencies report to Director on interim rules taking effect during reconsideration (15 days before proposed interim effective date)

  10. OMB deemed determination consistent for reports under 7(b) or 7(d) (15 days)

  11. Non-major rule notices and final rules due to Director (10 days before publication)

  12. OMB deemed review concluded for non-major rules (10 days)

Key directives

  • Agencies must prepare Regulatory Impact Analyses for all major rules
  • Major rule defined as $100M+ annual economic effect or significant adverse competitive/employment effects
  • Preliminary RIAs due to OMB 60 days before proposed rulemaking notice; final RIAs due 30 days before final rule publication
  • Non-major rules submitted to OMB 10 days before publication
  • OMB review deemed concluded after 60/30/10 day windows unless advised otherwise
  • Agencies must publish bi-annual regulatory agendas in October and April
  • Pending major rules not yet effective must be suspended/postponed for reconsideration
  • Agencies must report to OMB 15 days before effective date of excepted pending rules
  • Agencies must report to OMB 30 days before promulgating as final any pending proposed rule
  • January 29, 1981 postponement memorandum remains effective until March 30, 1981

Who is ordered

Timeline

Immediate

  • Suspension/postponement of pending major rules not yet effective
  • Revocation of EO 12044 and EO 12174
  • Establishment of Task Force on Regulatory Relief oversight

Near term (90d)

  • Agency reports due on pending rules by March 30, 1981 (per Sec. 7(i) memorandum extension)
  • Preparation of Regulatory Impact Analyses for suspended pending major rules
  • Initial regulatory agendas due October 1981

Long term

  • Ongoing OMB review of all major rules
  • Bi-annual regulatory agendas (April/October)
  • Systematic retrospective review of existing regulations
  • Institutionalization of cost-benefit analysis in federal rulemaking

Risks & tensions

  • Centralizes significant regulatory power in OMB/Director, potentially creating tension with independent agencies and congressional intent
  • Cost-benefit requirements may systematically disadvantage regulations with diffuse benefits and concentrated costs
  • Sec. 9 explicitly bars judicial enforcement, creating accountability gap if OMB delays or blocks rules
  • Emergency exemption (Sec. 8) is broadly defined and self-executing by agencies, with only post-hoc OMB notification
  • Vague: 'to the extent permitted by law' qualifiers throughout create uncertainty about binding scope on independent agencies
  • Retrospective review mandate (Sec. 3(i)) lacks specific deadlines or enforcement mechanisms
Executive Order 12291: Federal Regulation · Executive Orders