While the Defense Department, NASA and the General Services Administration jointly issued the Fair Pay rule — with further guidance from the Labor Department — the government will only be able to count the savings once, as spelled out in the guidance. Agencies can transfer cost savings from deregulation to different components within their organization, but need special permission to apply the savings from other agencies.
OMB advised agencies to spell out exactly what deregulatory actions they plan to implement in the preamble to each new proposed rule. Regulations and deregulations can be addressed in the same rules, and agencies should attempt to move both forward on the same timeline. Agencies can implement a new rule without first revoking existing ones, but must at least put forward their plans for future repeal. New regulations and deregulatory actions coupled together must be “logically connected,” OMB said.
Opponents of Trump’s policy have said the deregulation requirement would put the public at risk by ignoring the potential benefits of regulatory action. OMB maintained, however, the reform would have “no effect” on the consideration of regulatory benefits.
“The goal of the requirement to eliminate two existing regulatory actions for each new significant regulatory action is to provide a mechanism for agencies to identify and repeal outdated, ineffective or unnecessary regulatory actions,” OMB said.