Senator Schmitt Leads Effort to Get Answers from OMB on Biden Executive Actions that Would Expand the Administrative State, Impose Further Burdens on Americans

WASHINGTON – Today, Senator Eric Schmitt led a coalition of eight Senators in sending a letter to Office of Management and Budget (OMB) Director Shalanda Young demanding answers on Biden Executive Order 14094 “Modernizing Regulatory Review” with regard to new deceptive regulatory accounting techniques, and prioritization of Diversity, Equity and Inclusion (DEI) initiatives over expertise and merit:

“Biden’s latest executive order is yet another way in which this Administration will massively expand the administrative state, and small businesses and working-class families will certainly be paying the price. As if crushing inflation wasn’t enough, the Biden Administration is trying to cram more rules and more regulations down the throats of hardworking Americans,” said Senator Eric Schmitt. “Small business is the backbone of our economy- it is in America’s best interest to foster its growth, not burden main street entrepreneurs with costly regulations. We need to completely dismantle the administrative state and return power back to the people, and this executive order would only empower unelected bureaucrats. The American people deserve answers, and I’m going to fight to get them.”

Senator Schmitt is joined by Sen. Mike Lee (R-UT), Sen. Mike Braun (R-IN), Sen. Bill Hagerty (R-TN), Sen. John Barrasso (R-WY), Sen. Kevin Cramer (R-ND), Sen. Cynthia Lummis (R-WY), Sen. Ted Budd (R-NC), and Sen. John Thune (R-SD).

Background:

• The implementation of Executive Order (EO) 14094, “Modernizing Regulatory Review,” as well as the proposed revision of Office of Management and Budget (OMB) Circular A-4, “Regulatory Analysis,” will ensure a massive expansion of the administrative state.
• These recent actions are aimed to fundamentally reorder our regulatory process. These revisions will create a system that allows for more expensive regulations with less review – further empowering unelected bureaucrats. 
• This new regulatory process would, in all practical effect, allow more regulations to be issued without rigorous review.
  • EO 14094 raises the threshold of “significant regulatory action” from an annual effect on the economy of $100 million to $200 million. 
  • Regulations classified as “significant regulatory action” are more thoroughly scrutinized. This cost-benefit scrutiny ensures that the regulations are fully vetted and that alternatives to regulation are considered.
  • EO 14094’s higher threshold enables agencies to issue more rules without conducting a thorough cost-benefit analysis of those regulations.
• Beyond conducting less scrutiny, the proposed modifications to cost-benefit analyses in OMB Circular A-4 would allow agencies to conceal the true cost of regulations. 
• With the proposed revisions, agencies may potentially use a discount rate of 1.7 percent, lower than the previous rate of 3 percent.
• Additionally, agencies can use an even lower discount rate while considering intergenerational benefits.
  • While these changes may appear minor, a lower discount rate will allow agencies to manipulate cost-benefit analysis to supercharge the benefits.
• These changes would introduce new diversity, equity, and inclusion (DEI) considerations into the regulatory review process.
• EO 14094 implements a new “Inclusive Regulatory Policy and Public Participation” process.
  • A reading of the EO and Circular together demonstrates the Administration prioritizing diversity targets over expertise and merit.

Senator Schmitt has become a leader on clawing back power from unelected bureaucrats and returning it to the hands of Americans. Recently, Senator Schmitt has:

• Introduced the Expediting Reform And Stopping Excess Regulations (ERASER) Act aimed to dismantle the administrative state.
• Signed on to Sen. Ron Johnson’s (R-WI) Guidance Out Of Darkness (GOOD) Act.
• Signed on to Sen. Rick Scott’s (R-FL) Public Service Reform Act.
• Signed on to Sen. Rand Paul’s (R-KY) Regulations from the Executive in Need of Scrutiny (REINS) Act.

Read the full letter attached

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