Increasing Government Accountability for Administrative Actions by Reinvigorating Administrative PAYGO
Headline: Requires Agencies to Offset Administrative Actions That Increase Spending
What it does: Agencies must submit proposed discretionary administrative actions to the Director of the Office of Management and Budget for review and include offsets for any increase in mandatory spending.
- Requires agency heads to estimate and report budget effects before administrative actions.
- Agencies must propose offsets for actions that increase mandatory spending or face returns.
- The OMB Director may waive requirements and revoke prior guidance to reduce spending.
Summary
This order reestablishes Administrative PAYGO, making agencies account for the budget effects of discretionary administrative actions. Agency heads must submit proposed administrative actions to the Director of the Office of Management and Budget with estimates of budget effects, and if an action would increase mandatory spending they must include proposals to offset that increase.
The order affects federal agencies and the programs they administer, and gives the OMB Director authority to review, waive, or require offsets to control mandatory spending. It aims to keep mandatory spending under control and restore fiscal responsibility.
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