Federalism
Headline: Agencies Ordered to Protect State Authority in Federal Rulemaking
What it does: Agencies must follow federalism principles, consult states on proposed regulations, and streamline waiver processes with decisions within 120 days.
- Requires agencies to seek state and local input on major regulations.
- Creates faster waiver decisions for States, with decisions aimed within 120 days.
- Limits new substantial state costs unless federal funding or formal justification is provided.
Summary
This order requires executive branch agencies to respect the division of power between the Federal Government and the States when making policies. Agencies must follow federalism principles and carefully assess whether federal action is legally justified before limiting state or local policymaking.
The order also requires agencies to get timely input from state and local elected officials, avoid imposing substantial direct compliance costs on States unless federal funds are provided, and streamline waiver procedures with decisions aimed within 120 days.
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