President Trump has signed an executive order entitled “Reducing Regulation and Controlling Regulatory Costs.”

Like the regulatory freeze memo issued on Inauguration Day by Reince Priebus, the President’s Chief of Staff, the executive order appears to apply only to “an executive department or agency.” Since the D.C. Circuit’s PHH decision changing the CFPB’s structure from an independent to an executive agency has not yet taken effect, the Executive Order should not currently apply to the CFPB.

According to a Reuters report, the White House has confirmed that the new executive order does not apply to independent agencies.  However, as we have previously discussed, the Trump Administration could take the position that it does not have to wait for the PHH appeal to be resolved before it considers the CFPB to no longer be an independent agency.

The executive order includes the following requirements:

• If an agency publicly proposes a new regulation for notice and comment, it must identify at least two existing regulations to be repealed.
• For FY 2017, the total incremental cost of an agency’s new regulations, including repealed regulations, to be finalized this year shall be no greater than zero unless otherwise required by law or consistent with written advice provided by the Director of the OMB.  Any new incremental costs associated with new regulations shall be offset by the elimination of existing costs associated with at least two prior regulations.
• During the Presidential budget process, the Director shall identify a total amount of incremental costs that will be allowed for each agency in issuing new regulations and repealing regulations for the next fiscal year.