(January 21, 2011) On January 18, President Barack Obama issued an executive order directing federal agencies to review the effectiveness of their regulations.

Although regulations must continue to protect the nation’s safety, health and environment, the President acknowledged in an opinion column in The Wall Street Journal, “Sometimes, those rules have gotten out of balance, placing unreasonable burdens on business—burdens that have stifled innovation and have had a chilling effect on growth and jobs.”

The President’s executive order called for a government-wide review of current regulations to assess their effectiveness and the removal of out-of-date rules that “stifle job creation and make our economy less competitive.”

In particular, the executive order calls for the government to focus on streamlining regulations that deal with small businesses due to their importance in creating jobs and spurring the economy. For example, the government will look to remove specific burdensome paperwork requirements and “excessive, inconsistent and redundant” regulations.

According to a statement from the Obama administration’s Office of Management and Budget (OMB), the executive order outlines the following guiding principles for government agencies when crafting regulations:

• Consistent with law, agencies must consider costs and benefits and choose the least burdensome alternative.
• The regulatory process must encourage public participation and an open exchange of views, with an opportunity for the public to comment.
• Agencies must attempt to coordinate, simplify and harmonize regulations to reduce costs and promote certainty for businesses and the public.
• Agencies must consider low-cost approaches that reduce burdens and maintain flexibility. Regulations must be guided by objective scientific evidence.
• Existing regulations must be reviewed to determine that they are still necessary and crafted effectively; if not, they must be modified, streamlined or repealed.
• Taken together, these principles will create a more effective and cost-efficient regulatory framework.

To view the executive order, click here.

To view President Obama’s opinion piece click here.

To view OMB’s statement, click here.