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The Role of Executive Orders in the Rulemaking Process

Executive Orders (EOs) play a crucial role in shaping the rulemaking process within the United States, directing federal agencies on how to create, modify, or remove regulations. Understanding the impact of these orders can help clarify how federal policies are implemented and adjusted over time.

What are Executive Orders?

Executive Orders are directives issued by the President of the United States to manage operations of the federal government. They are one of the many tools the President can use to direct the activities of federal agencies and officials to ensure the administration's policy priorities are being met.

Influencing Rulemaking

EOs influence rulemaking by setting priorities and guidelines for federal agencies. These directives can initiate new rulemakings, modify existing regulations, or even roll back provisions depending on the administration’s goals. Here are a few ways EOs play a role in the regulatory framework:

  1. Initiating Rulemaking: EOs can direct agencies to develop new rules on specific issues. For example, President Obama’s EO 13658 established a minimum wage for contractors, which required the Department of Labor to create implementing regulations .
  2. Modifying Procedures: EOs often change how rules are made or reviewed. President Trump’s EO 13771, for example, required agencies to eliminate two existing regulations for every new regulation, significantly impacting how regulations were proposed and finalized .
  3. Setting Standards for Review: Many EOs outline how rules should be reviewed and assessed, often focusing on their economic impact, effectiveness, and efficiency. Executive Order 12866, for instance, sets out principles for regulatory planning and review, emphasizing the need for cost-benefit analysis as part of the rulemaking process .
  4. Fostering Transparency and Public Participation: Some EOs explicitly encourage agencies to be more transparent and to involve the public extensively in the rulemaking process. This is intended to improve the quality of federal regulations by ensuring they are well-informed by public opinion and expert advice .

Examples of Executive Orders Impacting Rulemaking

  • Executive Order 12866: Issued by President Clinton, it emphasizes regulatory planning and review, stressing the importance of cost-benefit analysis in assessing proposed regulations.
  • Executive Order 13563: Issued by President Obama, it seeks to improve regulation by calling for public consultation, harmonization, simplification, and periodic review of existing regulations.
  • Executive Order 13771: Known as the "two out, one in" order by President Trump, it required agencies to repeal two existing regulations for every new regulation proposed, aiming to reduce regulatory burdens.

Conclusion

Executive Orders are instrumental in directing the course of federal rulemaking, reflecting the policy priorities of each administration. They are powerful tools that can swiftly alter the regulatory landscape, affecting everything from environmental standards to labor laws. For businesses and individuals alike, staying informed about active and new Executive Orders is crucial for anticipating and understanding changes in the regulatory environment.

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