What's Happening?
The Office of Management and Budget (OMB) has released a new guidance memorandum aimed at expediting the review process for deregulatory actions. This memorandum, titled 'Streamlining the Review of Deregulatory Actions,' was issued on October 21, 2025,
and signed by Acting OIRA Administrator Jeffrey Bossert Clark. The guidance sets new presumptive deadlines of 28 days for deregulatory actions requiring factual records and 14 days for repeals of facially unlawful rules. It encourages agencies to bypass traditional notice-and-comment procedures by invoking the Administrative Procedure Act’s 'good cause' exception. The memorandum also suggests that certain Executive Orders related to federalism, tribal consultation, and other areas may not apply to deregulatory actions, thereby reducing procedural requirements.
Why It's Important?
This guidance represents a significant shift in how deregulatory actions are processed, potentially accelerating the removal of regulations deemed outdated or unlawful. By reducing the time for review and limiting public input, the OMB aims to facilitate a more rapid implementation of the Trump Administration's deregulatory agenda. This could lead to increased litigation as stakeholders may challenge the legality of bypassing traditional procedures. The guidance could impact various sectors by reducing regulatory burdens, potentially leading to cost savings and increased market flexibility. However, it also raises concerns about the lack of public participation and oversight in the regulatory process.
What's Next?
Stakeholders, including businesses and advocacy groups, will need to closely monitor agency actions and the Federal Register for new deregulatory measures. The expedited timelines may require more proactive engagement to influence outcomes. Additionally, the likelihood of increased litigation suggests that stakeholders may need to prepare for legal challenges to deregulatory actions. Agencies are expected to align their rulemaking agendas with the new guidance, potentially leading to a wave of deregulatory actions in the near future.
Beyond the Headlines
The memorandum's emphasis on deregulation as a positive good, citing benefits like enhanced liberty and market flexibility, reflects a broader ideological shift towards minimizing government intervention. This could have long-term implications for how regulations are perceived and implemented in the U.S. The guidance also highlights the potential for increased judicial involvement in regulatory matters, as courts may play a more significant role in interpreting statutes and determining the legality of agency actions.
