TagPublic policy

Trump administration’s 2-for-1 regulatory policy in review

The Office of Information and Regulatory Affairs (OIRA) issued a 2020 update on the Trump administration’s 2-for-1 regulatory policy as part of the Fall 2020 edition of the Unified Agenda of Federal Regulatory and Deregulatory Actions. The 2-for-1 policy applies to economically significant rules—those with an anticipated economic impact of $100 million or more. The update featured the following highlights:

• Agencies eliminated $198.6 billion in overall regulatory costs across the federal government in fiscal year 2020.

• Agencies eliminated 5.5 regulations for every new significant regulation added.

• Agencies issued 538 deregulatory actions overall.

From 2017 to 2019, agencies eliminated a cumulative $50.9 billion in regulatory costs.

The Trump administration as of January 15, 2021, had yet to publish a formal update on the 2-for-1 regulatory policy. An analysis by the Competitive Enterprise Institute, however, concluded that the administration issued 101 completed deregulatory actions and 31 completed regulatory actions in fiscal year 2020 for a 3-to-1 ratio. OIRA reported a 1.7-to-1 ratio in 2019, a 4-to-1 ratio in 2018, and a 22-to-1 ratio in 2017.

President Donald Trump (R) enacted the 2-for-1 regulatory policy via Executive Order 13771 in January 2017. The order instituted annual regulatory budgets for federal agencies and required agencies to eliminate two old regulations for each new regulation issued. The future of the 2-for-1 regulatory policy under the incoming Biden administration remains unclear.

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U.S. Small Business Administration relaunches Paycheck Protection Program

On Friday, January 8, the Small Business Administration (SBA) announced the Paycheck Protection Program (PPP) would make another round of loans available to new and some existing borrowers on January 11. Congress allocated $284 billion to the program in the Consolidated Appropriations Act, which President Donald Trump (R) signed into law on December 27, 2020.

The PPP, which Congress first authorized in the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020, was created to provide forgivable loans to small businesses affected by the coronavirus pandemic.

According to the SBA, beginning January 11, the new loans will only be available to first-time borrowers working with community financial institutions, which include banks and credit unions that focus on low-income and underserved borrowers. On January 13, community financial institutions can distribute loans to qualified borrowers who received PPP money last year. The SBA said the program would open to all other qualified first or second-time borrowers shortly thereafter.

The Consolidated Appropriations Act included a $900 billion coronavirus relief package that authorized a second round of direct stimulus payments, $20 billion in funding for coronavirus testing, and $28 billion towards acquiring and distributing doses of the vaccine. It also extended some policies, such as a moratorium on evictions and federal unemployment assistance.

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