trending Market Intelligence /marketintelligence/en/news-insights/trending/dSlt6Gvkolu3Z-SQjmF0FQ2 content esgSubNav
In This List

Trump signs executive orders targeting guidance documents from federal agencies

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Trump signs executive orders targeting guidance documents from federal agencies

U.S. President Donald Trump signed two executive orders that seek to limit federal agencies' use of so-called guidance documents to interpret and implement regulations, a practice that the White House says skirts public scrutiny.

Agencies issue guidance documents to explain new regulations and clarify existing policies and legal information, with the aim of assisting the public in their compliance. These include memos, circulars, bulletins, advisories and blog posts.

One of the new executive orders requires agencies to publish their guidance documents on easily searchable and accessible websites and to seek input from the public.

The other executive order prohibits agencies from enforcing rules that were not publicly revealed in advance. It also protects the public from "unfair or unexpected penalties for non-compliance," according to Russell Vought, acting director of the Office of Management and Budget.

"Too many agencies have found it easier to impose costly and excessive mandates through informal interpretations buried on their websites instead of going through the regular public review process Congress requires for agency rules," Vought said in an op-ed published by Fox News.

Vought cited a blog post issued by the Labor Department in 2015 that reclassified many independent contractors as employees. The guidance document, which was rescinded in 2017, increased costs and legal liability for businesses and did not allow for public comment, according to the White House official.

The executive orders also allow the public to ask agencies to withdraw guidance. They also require agencies to provide individuals with fair notices of potential complaints and opportunities to respond.

In 2018, a House Oversight Committee report showed that only 138 of the more than 13,000 guidance documents published by federal agencies since 2008 were formally submitted to Congress and the General Accounting Office, according to Bloomberg News.