REGULATORY REFORM
• Regulatory Freeze Pending Review
• Overview : o The EO implements a regulatory freeze that aims to prevent “ bureaucrats ” from issuing any more regulations until the Trump administration has “ full control ” of the government . The EO directs executive departments and agencies to halt the proposal or issuance of any rules until they are reviewed and approved by a department or agency head appointed or designated by the President after January 20 , 2025 . In essence , the EO serves as a regulatory pause to re-evaluate ongoing and future policies under the new administration ’ s agenda . Notably , such an EO is typical for incoming presidents . In fact , Trump issued a similar regulatory freeze at the start of his first term in 2017 , as did Joe Biden in 2021 .
• Implications : o Applies to guidance documents or other sub-regulatory actions
• As noted , the order defines “ rule ” broadly , encompassing not only rules as defined under the Administrative Procedure Act , 5 U . S . C . § 551 ( 4 ), but also any “ regulatory action ” as defined in section 3 ( e ) of Executive Order 12866 and any “ guidance document ” as defined in section 2 ( b ) of Executive Order 13891 . This includes agency statements of general applicability and future effect that set forth policies or interpretations of statutory or regulatory issues .
• Therefore , even Treasury guidance documents or other sub-regulatory actions related to tax credits would seem to fall under the scope of this regulatory freeze . Such guidance would need to undergo review and receive approval from the appropriate department or agency head appointed by the President before being issued or implemented . This process ensures that new regulatory actions align with the current administration ’ s policies and priorities .
• Details : o Halts the introduction of any new rule until a Trump-appointed department head , or their designee , has reviewed or approved the rule . Exceptions include those deemed necessary “ to address emergency situations or other urgent circumstances ”; o Withdraws rules that have been sent to the Office of the Federal Register ( OFR ) but has not been published in the Federal Register ( FR ); o Urges department heads to consider postponing by 60 days the effective date of any rule that has been published in the FR or has not yet taken effect ; o Departments may open a comment period during this 60-day period and may consider reevaluating pending petitions involving such rules .
• Other Recissions Affecting the Regulatory Process
• Executive Order 14094 of April 6 , 2023 ( Modernizing Regulatory Review ).
• Overview : This recission eliminate a Biden-era EO that attempted to modernize the regulatory process , such as bolstering outreach to affected parties , including underserved communities .
• Details : Revoking EO 14094 :
• Removes requirements for federal agencies to proactively engage underserved communities , consider equity and distributional impacts in regulatory decision-making , and enhance public participation in rulemaking processes . bracewell . com 10