Unleashing Prosperity Through Deregulation
- Executive Order Number
- 14192
- President
- Donald Trump
- Signed
- January 31, 2025
- Published
- February 6, 2025
- Source
- Federal Register
- Original Document
- https://www.govinfo.gov/content/pkg/FR-2025-02-06/pdf/2025-02345.pdf
AI-Generated Summary
Executive Order: Unleashing Prosperity Through Deregulation
Purpose
The primary purpose of this executive order is to reduce the regulatory burden on Americans, promoting economic growth, innovation, and global competitiveness. The order aims to achieve this by significantly reducing private expenditures required to comply with federal regulations.
Key Actions and Directives
- Ten-for-One Rule: For each new regulation proposed, agencies must identify at least 10 existing regulations to be repealed.
- Regulatory Cap for FY 2025: Agencies must ensure that the total incremental cost of all new regulations finalized in FY 2025 is significantly less than zero, unless otherwise required by law.
- Cost Offsetting: New incremental costs must be offset by the elimination of existing costs from at least 10 prior regulations.
- Annual Regulatory Cost Submissions: Agencies must submit annual regulatory cost plans to the Office of Management and Budget (OMB) starting with FY 2026.
- Definition of Regulation: The order broadens the definition of "regulation" to include rules, memoranda, administrative orders, guidance documents, policy statements, and interagency agreements, with specified exemptions.
- Implementation Guidance: The OMB Director is tasked with providing guidance on implementing the ten-for-one rule and other provisions, including revoking and reinstating certain OMB circulars and agreements.
Significant Changes to Policy or Law
- Regulatory Budgeting: Introduces a rigorous regulatory budgeting process, requiring agencies to manage and control the cost of regulations.
- Expansion of "Regulation" Definition: Broadens the scope of what is considered a regulation, potentially affecting a wider range of federal actions.
- Revocation and Reinstatement of OMB Circulars: Revokes the current OMB Circular A-4 and reinstates the 2003 version, alongside reinstating a 2018 Memorandum of Agreement between the Department of the Treasury and OMB.
Potential Impacts
- Government Agencies: Agencies will face increased administrative burdens to comply with the ten-for-one rule and regulatory cost management. This may lead to delays in new regulations and increased scrutiny over existing ones.
- Citizens and Businesses: Aimed at reducing compliance costs, this could potentially lower the financial burden on businesses and individuals, fostering economic growth and innovation.
- International Relations: By enhancing U.S. economic competitiveness, the order may influence international trade and economic relationships.
Stakeholders
- Federal Agencies: Directly affected by the need to manage regulatory costs and repeal existing regulations.
- Businesses and Private Sector: Potentially benefit from reduced compliance costs and regulatory burdens.
- Citizens: May experience indirect benefits from economic growth and innovation, though the impact on specific sectors or individuals could vary.
- Office of Management and Budget: Central role in overseeing and guiding the implementation of the order.
Legal, Constitutional, and Political Implications
- Legal: The order expands the definition of "regulation," which may lead to legal challenges regarding its application and the scope of regulatory actions. The severability clause indicates an anticipation of potential legal disputes.
- Constitutional: The order is issued under the authority of the President, consistent with the Budget and Accounting Act of 1921, but the broad definition of "regulation" could raise questions about executive overreach.
- Political: The policy may be politically contentious, as it represents a significant shift towards deregulation, which could be debated in terms of its impact on public welfare, environmental protection, and consumer rights.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.