President Trump on Thursday signed an executive order aimed at cutting federal agency spending by reinstating a rule that originally went into place during the George W. Bush administration.
The order will put into effect the “administrative PAYGO” memorandum, which Bush implemented in 2005 to require agencies to offset any actions they took that would increase spending on mandatory programs. While federal deficits have ballooned since President Trump took office, the order is part of an effort to rein in agency spending and give the administration more flexibility for its priorities.
“Administrative actions” subject to the order will include rules, demonstrations, program notices or guidance not specifically required by law. Agencies will have to submit administrative actions that would increase mandatory spending to the Office of Management and Budget director, along with proposals to offset that spending. OMB will issue further instructions to agencies in the coming months.
“President Trump continues keeping government spending accountable to the American people,” a senior administration official said. “For too long, careless federal spending has occurred without restraint. While the Obama administration completely ignored administrative PAYGO requirements, this administration is taking steps to stop out-of-control Washington spending and hold government accountable to spending taxpayer money wisely.”
A Congressional Research Service report released in 2010 gave the OMB policy mixed reviews, saying it was difficult to measure its success due to a lack of transparency.
“After several years of implementation, however, very little is publicly known about the scope and effect of OMB’s process, the rationales for OMB determinations, or whether the process has achieved its stated purpos ..
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