Regulatory Reform: Two-for-One and Regulatory Cost Caps

The Regulatory Reform Status Report: Two-for-One and Regulatory Cost Caps presents the Office of Information and Regulatory Affairs' compilation of regulatory reform efforts through the end of November 2017. In Executive Order (EO) 13771 ("Reducing Regulation and Controlling Regulatory Costs," January 30, 2017), President Trump directed agencies to eliminate two regulations for each new one and to reduce net regulatory costs to zero in Fiscal Year 2017. Agencies appointed new regulatory reform officers and regulatory reform taskforces to help implement these changes (Executive Order 13777, "Enforcing the Regulatory Reform Agenda," February 24, 2017). Agencies have systematically evaluated existing regulatory actions to determine whether they are unnecessary, ineffective, duplicative, or inconsistent with legal requirements. Regulatory and deregulatory actions must result in net benefits to society and meet other longstanding requirements of Executive Order 12866.


Fiscal Year 2017: In the first eight months of the administration, agencies have far exceeded the two-for-one and regulatory cap requirements.

Fiscal Year 2018: As part of the effort to continue reducing unnecessary, unlawful, and ineffective regulatory burdens, agencies have worked with OIRA to identify a regulatory cost allowance or cap for FY 2018. These cost allowances are informed by each agency's submissions for the Fall 2017 Regulatory Plan and Unified Agenda. In Fiscal Year 2018, across the federal government, agencies anticipate saving $9.8 billion in regulatory costs, or $686.6 million per year, from final rulemakings.


In order to calculate the regulatory costs and cost savings for the purposes of EO 13771, OIRA and the agencies have established consistent accounting standards, explained in further detail in Accounting Methods for Calculating Regulatory Costs under Executive Order 13771.