Executive Order 13966 · Signed Dec 14, 2020

85 FR 81777 · Published Dec 17, 2020 · Effective on signing

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Increasing Economic and Geographic Mobility

occupational licensingworker mobilityregulatory reformmilitary familiessmall business

Signed by President Donald Trump

The order directs every federal agency to review its own regulations and authorities for alignment with six principles favoring less restrictive occupational licensing, and sets up a cascade of reports aimed at rewarding states that reform licensing rules.

Establishes a federal framework to push back on occupational licensing requirements that limit worker mobility, harm low-income Americans, and impose barriers on military spouses — but the actual regulatory changes depend on future agency action and presidential approval.

What this order does

What it orders

The order directs the head of every executive agency to review its regulations, guidance, and policies within 90 days and every two years after, identifying changes needed to align with six stated principles of least-restrictive occupational licensing. Each agency must submit findings to the Director of OMB, the Assistant to the President for Domestic Policy, and the Director of Intergovernmental Affairs. Separately, agencies must recommend actions to recognize and reward states, territories, and tribes that adopt licensing policies consistent with those principles. The Assistant to the President for Domestic Policy must compile a consolidated report to the President within 120 days, and the Small Business Administration must gather and publicly release information on state compliance within 180 days.

The order does not itself repeal or change any occupational licensing regulation. Implementation of recommended reforms is contingent on presidential approval of recommended actions, subsequent agency rulemaking, and the availability of appropriations. Standard severability language preserves existing agency authorities, and the order creates no enforceable rights.

Who it affects

All federal executive agencies directed to review their regulations; the Small Business Administration, Departments of Commerce, Labor, and HHS tasked with specific reports. Downstream, the order targets state, territorial, and tribal occupational licensing boards, and ultimately workers — especially military spouses, low-income job seekers, and individuals with criminal records — who face licensing barriers.

Why it matters

Workers who must re-license when crossing state lines — particularly military spouses — and applicants blocked by criminal history could see licensing barriers eased if states respond to federal recognition incentives. However, no licensing rule changes until agencies act on future recommendations and states choose to reform.

What must happen and when

How the order is supposed to work

The order creates a layered reporting cascade. First, individual agency heads review their own rules (90 days) and submit reports to OMB and White House domestic policy staff. Then, the Domestic Policy Assistant synthesizes agency input and reports to the President (120 days). The SBA, consulting Commerce and Labor, then surveys states on compliance and posts results publicly (180 days). All steps recur every two years. No regulatory change takes effect until the President approves recommended actions, at which point agencies implement recognition-and-reward measures consistent with applicable law and appropriations.

Actions and deadlines

  • Agency heads review authorities, regulations, guidance, and policies and submit report to OMB and White House officesWithin 90 days of signing
  • Agency heads submit report identifying recommended actions to recognize and reward states with compliant licensing policiesWithin 90 days of signing
  • Assistant to the President for Domestic Policy submits consolidated reform recommendations report to the PresidentWithin 120 days of signing
  • SBA Administrator seeks information from states on licensing policy compliance and makes report publicly availableWithin 180 days of signing
  • Agencies implement any presidential-approved actions to recognize and reward qualifying state governmentsNo deadline specified

Agencies directed to act

Office of Management and BudgetSmall Business AdministrationDepartment of CommerceDepartment of LaborDepartment of Health and Human Services

Authority and reach

Authorities cited

Article II

Constitutional grant of executive power to the President.

5 U.S.C. § 305

Authorizes agency heads to delegate functions and establish internal reporting requirements.

3 U.S.C. § 301

Allows the President to delegate functions to executive branch officials.

Executive Order

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Executive Order 13966: Increasing Economic and Geographic Mobility | EO Reporter