Increasing Government Accountability for Administrative Actions by Reinvigorating Administrative PAYGO, 55487-55488 [2019-22749]

Download as PDF Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Presidential Documents 55487 Presidential Documents Executive Order 13893 of October 10, 2019 Increasing Government Accountability for Administrative Actions by Reinvigorating Administrative PAYGO By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1. Purpose. In May 2005, the Office of Management and Budget (OMB) implemented a budget-neutrality requirement on executive branch administrative actions affecting mandatory spending. This mechanism, commonly referred to as ‘‘Administrative pay-as-you-go’’ (Administrative PAYGO), requires each executive department and agency (agency) to include one or more proposals for reducing mandatory spending whenever an agency proposes to undertake a discretionary administrative action that would increase mandatory spending. In practice, however, agencies have applied this requirement with varying degrees of stringency, sometimes resulting in higher mandatory spending. Accordingly, institutionalizing and reinvigorating Administrative PAYGO through this order is a prudent approach to keeping mandatory spending under control. Sec. 2. Policy. It is the policy of the executive branch to control Federal spending and restore the Nation’s fiscal security. This policy includes ensuring that agencies consider the costs of their administrative actions, take steps to offset those costs, and curtail costly administrative actions. Sec. 3. Definitions. For the purposes of this order: (a) the term ‘‘discretionary administrative action’’ means any administrative action that is not required by statute and that would impact mandatory spending, including, but not limited to, the issuance of any agency rule, demonstration, program notice, or guidance; and khammond on DSKJM1Z7X2PROD with PRESDOC2 (b) the term ‘‘increase’’ in the context of mandatory spending means an increase relative to the projection in the most recent President’s Budget, as described in 31 U.S.C. 1105, or Mid-Session Review, as described in 31 U.S.C. 1106, of what is required, under current law, to fund the mandatoryspending program. Sec. 4. Scope. This order applies to discretionary administrative actions undertaken by agencies. If an agency determines that a proposed administrative action that would increase mandatory spending is required by statute and therefore is not a discretionary administrative action, the agency’s general counsel shall provide a written opinion to the Director of OMB (Director) explaining that legal conclusion, and the agency shall consult with OMB prior to taking further action. Sec. 5. Agency Proposal Requirements. (a) Before an agency may undertake any discretionary administrative action, the head of the agency shall submit the proposed discretionary administrative action to the Director for review. Such submission shall include an estimate of the budgetary effects of such action. (b) If an agency’s proposed discretionary administrative action would increase mandatory spending, the agency head’s submission under subsection (a) of this section shall include a proposal to undertake other administrative action(s) that would comparably reduce mandatory spending. Submissions to increase mandatory spending that do not include a proposal to offset such increased spending shall be returned to the agency for reconsideration. VerDate Sep<11>2014 17:31 Oct 15, 2019 Jkt 250001 PO 00000 Frm 00001 Fmt 4790 Sfmt 4790 E:\FR\FM\16OCE0.SGM 16OCE0 55488 Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Presidential Documents The Director shall have the discretion to determine whether a proposed offset in mandatory spending is comparable to the relevant increase in mandatory spending, taking into account the magnitude of the offset and the increase and any other factors the Director deems appropriate. Sec. 6. Issuance of Administrative PAYGO Guidance and Revocation of OMB PAYGO Memorandum. Within 90 days of the date of this order, the Director shall issue instructions regarding the implementation of this order, including how agency administrative action proposals that increase mandatory spending and non-tax receipts will be evaluated. In addition, within 90 days of the date of this order, the Director shall revoke OMB Memorandum M–05–13. Sec. 7. Waiver. The Director may waive the requirements of section 5 of this order when the Director concludes that such a waiver is necessary for the delivery of essential services, for effective program delivery, or because a waiver is otherwise warranted by the public interest. Sec. 8. Flexibility for the Director of OMB to Pursue Additional Deficit Reduction. The Director may pursue additional deficit reduction through agency administrative actions. Sec. 9. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. THE WHITE HOUSE, October 10, 2019. [FR Doc. 2019–22749 Filed 10–15–19; 11:15 am] Billing code 3295–F0–P VerDate Sep<11>2014 17:31 Oct 15, 2019 Jkt 250001 PO 00000 Frm 00002 Fmt 4790 Sfmt 4790 E:\FR\FM\16OCE0.SGM 16OCE0 Trump.EPS</GPH> khammond on DSKJM1Z7X2PROD with PRESDOC2 (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

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[Federal Register Volume 84, Number 200 (Wednesday, October 16, 2019)]
[Presidential Documents]
[Pages 55487-55488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22749]




                        Presidential Documents 



Federal Register / Vol. 84 , No. 200 / Wednesday, October 16, 2019 / 
Presidential Documents

[[Page 55487]]


                Executive Order 13893 of October 10, 2019

                
Increasing Government Accountability for 
                Administrative Actions by Reinvigorating Administrative 
                PAYGO

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, it is hereby ordered as follows:

                Section 1. Purpose. In May 2005, the Office of 
                Management and Budget (OMB) implemented a budget-
                neutrality requirement on executive branch 
                administrative actions affecting mandatory spending. 
                This mechanism, commonly referred to as 
                ``Administrative pay-as-you-go'' (Administrative 
                PAYGO), requires each executive department and agency 
                (agency) to include one or more proposals for reducing 
                mandatory spending whenever an agency proposes to 
                undertake a discretionary administrative action that 
                would increase mandatory spending.

                In practice, however, agencies have applied this 
                requirement with varying degrees of stringency, 
                sometimes resulting in higher mandatory spending. 
                Accordingly, institutionalizing and reinvigorating 
                Administrative PAYGO through this order is a prudent 
                approach to keeping mandatory spending under control.

                Sec. 2. Policy. It is the policy of the executive 
                branch to control Federal spending and restore the 
                Nation's fiscal security. This policy includes ensuring 
                that agencies consider the costs of their 
                administrative actions, take steps to offset those 
                costs, and curtail costly administrative actions.

                Sec. 3. Definitions. For the purposes of this order:

                    (a) the term ``discretionary administrative 
                action'' means any administrative action that is not 
                required by statute and that would impact mandatory 
                spending, including, but not limited to, the issuance 
                of any agency rule, demonstration, program notice, or 
                guidance; and
                    (b) the term ``increase'' in the context of 
                mandatory spending means an increase relative to the 
                projection in the most recent President's Budget, as 
                described in 31 U.S.C. 1105, or Mid-Session Review, as 
                described in 31 U.S.C. 1106, of what is required, under 
                current law, to fund the mandatory-spending program.

                Sec. 4. Scope. This order applies to discretionary 
                administrative actions undertaken by agencies. If an 
                agency determines that a proposed administrative action 
                that would increase mandatory spending is required by 
                statute and therefore is not a discretionary 
                administrative action, the agency's general counsel 
                shall provide a written opinion to the Director of OMB 
                (Director) explaining that legal conclusion, and the 
                agency shall consult with OMB prior to taking further 
                action.

                Sec. 5. Agency Proposal Requirements. (a) Before an 
                agency may undertake any discretionary administrative 
                action, the head of the agency shall submit the 
                proposed discretionary administrative action to the 
                Director for review. Such submission shall include an 
                estimate of the budgetary effects of such action.

                    (b) If an agency's proposed discretionary 
                administrative action would increase mandatory 
                spending, the agency head's submission under subsection 
                (a) of this section shall include a proposal to 
                undertake other administrative action(s) that would 
                comparably reduce mandatory spending. Submissions to 
                increase mandatory spending that do not include a 
                proposal to offset such increased spending shall be 
                returned to the agency for reconsideration.

[[Page 55488]]

                The Director shall have the discretion to determine 
                whether a proposed offset in mandatory spending is 
                comparable to the relevant increase in mandatory 
                spending, taking into account the magnitude of the 
                offset and the increase and any other factors the 
                Director deems appropriate.

                Sec. 6. Issuance of Administrative PAYGO Guidance and 
                Revocation of OMB PAYGO Memorandum. Within 90 days of 
                the date of this order, the Director shall issue 
                instructions regarding the implementation of this 
                order, including how agency administrative action 
                proposals that increase mandatory spending and non-tax 
                receipts will be evaluated. In addition, within 90 days 
                of the date of this order, the Director shall revoke 
                OMB Memorandum M-05-13.

                Sec. 7. Waiver. The Director may waive the requirements 
                of section 5 of this order when the Director concludes 
                that such a waiver is necessary for the delivery of 
                essential services, for effective program delivery, or 
                because a waiver is otherwise warranted by the public 
                interest.

                Sec. 8. Flexibility for the Director of OMB to Pursue 
                Additional Deficit Reduction. The Director may pursue 
                additional deficit reduction through agency 
                administrative actions.

                Sec. 9. General Provisions. (a) Nothing in this order 
                shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director relating to budgetary, administrative, 
or legislative proposals.

                    (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.
                    (c) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    October 10, 2019.

[FR Doc. 2019-22749
Filed 10-15-19; 11:15 am]
Billing code 3295-F0-P