Editor’s Note: The following is an excerpt from OIRA’s June 18, 2018 Memorandum to Regulatory Policy Officers and Executive Directors of Agencies. The complete document is available here. Read the history of regulatory budgeting here.

From: OIRA

Proposed Cost Allowance Submissions under EO 13771 for Fiscal Year 2019

Section 3(d) ofEO 13771 provides that the Director of OMB shall identify a regulatory cost allowance for each agency for FY 2019. The Order further provides that “[n ]o regulations exceeding the agency’s total incremental cost allowance will be permitted in that fiscal year, unless required by law or approved in writing by the Director.”

In addition to Unified Agenda preparations, Executive departments and agencies are directed to prepare a proposed total incremental cost allowance for FY 2019 to inform the Director’s determinations under Section 3(d) of EO 13771. Each agency’s proposed FY 2019 cost allowance should be informed by its submissions for the Fall 2018 Regulatory Plan and Unified Agenda of Federal Regulatory and Deregulatory Actions. Each agency should include along with its proposed FY 2019 cost allowance an explanation of how the agency developed its proposed allowance and how that proposed allowance is consistent with the Administration’s regulatory policies and priorities established in EO 13771, as well as EO 13777 “Enforcing the Regulatory Reform Agenda.”

OIRA will review each agency’s proposed FY 2019 cost allowance for consistency with the regulatory policies and priorities set forth in EOs 13771 and 13777, including the goal “to lower regulatory burdens on the American People by implementing and enforcing regulatory reform.” EO 13777 also explains that “[i]t is the policy ofthe United States to alleviate unnecessary regulatory burdens placed on the American people.” Finally, EO 13771 provides that this Administration’s policy is “to be prudent and financially responsible in the expenditure offunds, from both public and private sources.”

In light of these policies, OIRA expects that each agency will propose a net reduction in total incremental regulatory costs for FY 2019. OIRA expects to publish each agency’s final total incremental cost allowances in conjunction with the 2018 Fall Regulatory Plan and Agenda.

By July 27, 2018, please submit the proposed total incremental cost allowance for FY 2019 via the new EO 13771 module in www.rocis.gov, along with any supporting explanation, at the same time as submissions for the Fall 2017 Regulatory Plan and Unified Agenda of Federal Regulatory and Deregulatory Actions.