An executive order signed by President Joe Biden will increase the threshold for regulatory analysis that policymakers use to understand the effects of regulatory actions on the economy as part of efforts to modernize the U.S. regulatory review system.
“In order to focus OIRA and agency resources where they are most beneficial, the executive order increases the threshold to $200 million from $100 million in annual effects and directs that it be adjusted for GDP growth every three years,” Richard Revesz, administrator of the Office of Information and Regulatory Affairs within the Office of Management and Budget, wrote in a blog post published Thursday.
The EO will encourage the public to increase their involvement in the regulatory review process and directs OMB through OIRA to revise Circular A-4.
Revesz said the circular serves as guidance that seeks to help agencies determine the effects of their regulatory actions.
“Specifically, the revision updates the discount rate that translates future costs and benefits into present-day values, provides greater support for analyzing distributional effects, and provides more thorough guidance for accounting for risk and uncertainty,” he wrote.
Revesz noted that OMB is also advancing revisions to Circular A-94, which offers guidelines on how federal grant funding is spent annually and that the proposed updates seek to “help better target federal funds for crucial projects.”
OMB is soliciting public input on the proposed revisions to the two circulars.