EO 12372Executive OrderReagan · R Quiet signal

Executive Order 12372

Intergovernmental Review of Federal Programs

This executive order establishes a framework for state and local governments to review and coordinate proposed federal financial assistance and direct federal development. It requires federal agencies to consult with affected state and local elected officials, utilize state-developed review processes, and replace previous OMB Circular A-95 procedures with new implementing regulations.

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Impact dates

  1. OMB Director report to President on federal agency compliance

  2. New rules and regulations become effective, replacing current rules

Key directives

  • Federal agencies must provide consultation opportunities to state and local elected officials on proposed federal financial assistance and direct federal development
  • Federal agencies shall utilize state-developed processes for determining official views of state and local elected officials
  • Federal agencies must communicate early in program planning cycle with state and local officials
  • Federal agencies must accommodate state and local concerns or explain decisions in timely manner
  • States allowed to simplify and consolidate federally required state plan submissions
  • Federal agencies must discourage reauthorization or creation of federally-funded planning organizations not representative of state or local elected officials
  • OMB shall maintain and disseminate list of official state entities designated for review and coordination
  • Agencies shall propose rules and regulations to OMB for approval
  • New rules and regulations shall replace current ones and become effective September 30, 1983
  • OMB Director authorized to prescribe implementation rules and exercise authority under Intergovernmental Cooperation Act of 1968
  • November 8, 1968 Memorandum terminated; OMB Circular A-95 revoked
  • Federal agencies continue complying with old rules until new ones issued

Who is ordered

Timeline

Immediate

  • Termination of November 8, 1968 Memorandum
  • Revocation of OMB Circular A-95 ordered
  • Continued compliance with old rules until new ones issued

Near term (90d)

  • Agencies to propose new rules and regulations to OMB

Long term

  • New rules effective September 30, 1983
  • OMB report to President due September 30, 1984
  • Ongoing intergovernmental review process

Risks & tensions

  • Vague 'to the extent permitted by law' qualifiers throughout may limit actual state and local influence
  • No enforcement mechanism specified for agencies that fail to accommodate state/local concerns
  • Transition period with old rules remaining in effect creates potential compliance confusion
  • State discretion to exclude certain federal programs from review may create inconsistent oversight
  • Discouraging federally-funded planning organizations could weaken regional coordination capacity
Executive Order 12372: Intergovernmental Review of Federal Programs · Executive Orders