What's Happening?
The Office of Management and Budget (OMB) under the Trump Administration has issued Memorandum M-25-36 to streamline the review of deregulatory actions. This guidance, signed by Acting OIRA Administrator
Jeffrey Bossert Clark, aims to accelerate and expand deregulatory directives by removing outdated, unlawful, or inefficient regulations. The memorandum encourages agencies to bypass notice and comment procedures for 'facially unlawful' regulations, relying on the good cause exception under the Administrative Procedure Act. This allows for the use of interim final rules without detailed rationales or public comment when deregulation is deemed 'purely legal.' The guidance is part of a broader effort to deregulate at an unprecedented scale, as outlined in Executive Orders 14192 and 14219.
Why It's Important?
The memorandum represents a significant shift in regulatory policy, potentially impacting various industries by reducing the regulatory burden. By expediting the review process and limiting public input, the guidance could lead to faster implementation of deregulatory actions, benefiting businesses seeking less regulatory oversight. However, it also raises concerns about reduced transparency and accountability in the rulemaking process. The reliance on the good cause exception may lead to increased litigation as stakeholders challenge the legality of bypassing traditional procedures. This development underscores the ongoing debate over the balance between regulatory efficiency and public participation in governance.
What's Next?
Stakeholders, including businesses and advocacy groups, will need to closely monitor agency actions and potential litigation resulting from this guidance. The acceleration of deregulatory actions may prompt reactions from political leaders and civil society groups concerned about the implications for public health, safety, and environmental protections. As agencies implement the guidance, the legal landscape may evolve, with courts potentially playing a crucial role in determining the boundaries of executive authority in deregulation.
