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EO 13771Executive OrderTrump 45 · R

Executive Order 13771

Reducing Regulation and Controlling Regulatory Costs

This executive order establishes a "two-for-one" rule requiring agencies to identify two existing regulations for elimination for every new regulation proposed. It also imposes a zero incremental cost cap on all new regulations for fiscal year 2017 and creates an annual regulatory budgeting process overseen by OMB.

Federal Register Open PDF 82 FR 9339

Impact dates

  1. Annual Regulatory Cost Submissions for each fiscal year thereafter

  2. FY 2018 Regulatory Plans with offsetting regulation identifications due

  3. FY 2017 zero incremental cost cap ends

  4. OMB Director guidance on Section 2 implementation

Key directives

  • For every new regulation, identify at least two existing regulations for repeal (Sec. 2a)
  • FY 2017 total incremental cost of all new regulations shall be no greater than zero (Sec. 2b)
  • New incremental costs must be offset by elimination of existing costs from at least two prior regulations (Sec. 2c)
  • OMB Director to provide implementation guidance on cost measurement, standards, and waivers (Sec. 2d)
  • Beginning FY 2018, agency heads must identify offsetting regulations and cost estimates for each regulation increasing incremental cost (Sec. 3a)
  • No regulation may be issued if not on most recent Unified Regulatory Agenda unless approved in writing by OMB Director (Sec. 3c)
  • During Presidential budget process, OMB Director to set total incremental cost allowance per agency for next fiscal year (Sec. 3d)

Who is ordered

Timeline

Immediate

  • Two-for-one rule takes effect for FY 2017
  • Zero incremental cost cap applies to regulations finalized in FY 2017

Near term (90d)

  • OMB Director to issue implementation guidance for Section 2
  • Agencies must begin identifying offsetting regulations for new proposals

Long term

  • Annual regulatory cost submissions required beginning FY 2018
  • Regulatory budgeting process institutionalized through Presidential budget cycle
  • Unified Regulatory Agenda gatekeeping requirement for all future regulations

Risks & tensions

  • Legal vulnerability: Order may conflict with statutory mandates requiring agencies to issue regulations; 'unless required by law' carve-outs create uncertainty
  • Administrative burden: Cost measurement standardization is complex and contested; OMB guidance timing and content unclear
  • Potential for regulatory delay: Unified Regulatory Agenda gatekeeping could slow legally required rulemaking
  • Equity concerns: Zero-cost framing may undervalue health, safety, and environmental benefits relative to compliance costs
  • Interagency tension: Offsetting costs 'at different times or different agencies' (Sec. 2d) may create bureaucratic conflicts
Executive Order 13771: Reducing Regulation and Controlling Regulatory Costs · Executive Orders