Modernizing Regulatory Review

Democracy & Governance Economy & Labor Civil Rights Federal Workforce

In simple terms

This executive order updates the framework for federal regulatory review by raising the economic threshold for "significant regulatory actions" from $100 million to $200 million, requiring regulatory analysis to consider distributive impacts and equity, expanding public participation requirements to include underserved communities, and mandating OMB revise its key cost-benefit analysis guidance (Circular A-4) within one year.

Federal Register Open PDF 88 FR 21879

Record & deadlines

Apr 6, 2023Signed
Signed by the President
Apr 11, 2023FR published
Published in the Federal Register · 88 FR 21879
Federal Register PDF
Apr 6, 2024
OMB Circular A-4 revisions due

Key directives

Amend EO 12866 Section 3(f) to raise 'significant regulatory action' threshold from $100 million to $200 million, adjusted every 3 years by OIRA Administrator for GDP changes
Require regulatory analysis to recognize distributive impacts and equity, to extent permitted by law
Direct agencies to proactively engage underserved communities, workers, labor organizations, and other affected parties in regulatory planning
Require agencies maintain log of 5 U.S.C. 553(e) petitions and share status with OIRA upon request
Direct OIRA Administrator to consider guidance/tools to modernize notice-and-comment process for mass comments, AI-generated comments, and falsely attributed comments
Require OIRA to implement reforms to improve access and transparency for non-executive branch meeting requests, including disclosure of meeting data in open, machine-readable format
Direct OMB Director, through OIRA Administrator, to issue revisions to Circular A-4 within 1 year, in consultation with CEA Chair and relevant agencies

Who is ordered

Prior policy

amendExecutive Order 12866 Section 3(f)
otherExecutive Order 12866
otherExecutive Order 13563
otherPresidential Memorandum of January 20, 2021 (Modernizing Regulatory Review)
otherOMB Circular A-4 of September 17, 2003

Related orders

What to expect

Immediate

Threshold for 'significant regulatory action' rises to $200 million (with triennial GDP adjustment)
OIRA must begin implementing meeting transparency and access reforms
Agencies must begin proactive outreach efforts for regulatory agendas

Near term (90d)

OIRA to consider guidance/tools for modernizing notice-and-comment process (AI-generated comments, mass comments, falsely attributed comments)
OIRA to implement meeting request reforms for non-executive branch participants

Long term

OMB Circular A-4 revisions due, incorporating distributive impacts and equity into regulatory cost-benefit analysis
Triennial GDP adjustment of $200 million threshold begins
Structural shift in how federal regulations are evaluated and who participates in rulemaking

Risks & tensions

Higher $200M threshold may reduce OIRA review of economically significant rules, potentially decreasing White House oversight of agency regulation
Equity and distributive impact requirements in regulatory analysis may conflict with traditional cost-benefit methodologies; tension with statutory constraints ('to extent permitted by law')
Vague 'to the extent practicable and consistent with applicable law' qualifiers throughout may limit enforceability
Meeting transparency reforms (disclosure of names, dates, subjects) may face pushback from stakeholders preferring confidential engagement
No dedicated funding or staff specified for expanded outreach to underserved communities; 'subject to available resources' and 'as practicable' create implementation uncertainty
AI-generated comment provisions are prospective (OIRA 'shall consider guidance') rather than immediate requirements