Increasing Government Accountability for Administrative Actions by Reinvigorating Administrative PAYGO

Executive Order 13893 of October 10, 2019

Increasing Government Accountability for
Administrative Actions by Reinvigorating Administrative
PAYGO

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, it is hereby ordered as follows:

Section 1. Purpose. In May 2005, the Office of
Management and Budget (OMB) implemented a budget-
neutrality requirement on executive branch
administrative actions affecting mandatory spending.
This mechanism, commonly referred to as
“Administrative pay-as-you-go” (Administrative
PAYGO), requires each executive department and agency
(agency) to include one or more proposals for reducing
mandatory spending whenever an agency proposes to
undertake a discretionary administrative action that
would increase mandatory spending.

In practice, however, agencies have applied this
requirement with varying degrees of stringency,
sometimes resulting in higher mandatory spending.
Accordingly, institutionalizing and reinvigorating
Administrative PAYGO through this order is a prudent
approach to keeping mandatory spending under control.

Sec. 2. Policy. It is the policy of the executive
branch to control Federal spending and restore the
Nation's fiscal security. This policy includes ensuring
that agencies consider the costs of their
administrative actions, take steps to offset those
costs, and curtail costly administrative actions.

Sec. 3. Definitions. For the purposes of this order:

    (a) the term “discretionary administrative
action” means any administrative action that is not
required by statute and that would impact mandatory
spending, including, but not limited to, the issuance
of any agency rule, demonstration, program notice, or
guidance; and
    (b) the term “increase” in the context of
mandatory spending means an increase relative to the
projection in the most recent President's Budget, as
described in 31 U.S.C. 1105, or Mid-Session Review, as
described in 31 U.S.C. 1106, of what is required, under
current law, to fund the mandatory-spending program.

Sec. 4. Scope. This order applies to discretionary
administrative actions undertaken by agencies. If an
agency determines that a proposed administrative action
that would increase mandatory spending is required by
statute and therefore is not a discretionary
administrative action, the agency's general counsel
shall provide a written opinion to the Director of OMB
(Director) explaining that legal conclusion, and the
agency shall consult with OMB prior to taking further
action.

Sec. 5. Agency Proposal Requirements. (a) Before an
agency may undertake any discretionary administrative
action, the head of the agency shall submit the
proposed discretionary administrative action to the
Director for review. Such submission shall include an
estimate of the budgetary effects of such action.

    (b) If an agency's proposed discretionary
administrative action would increase mandatory
spending, the agency head's submission under subsection
(a) of this section shall include a proposal to
undertake other administrative action(s) that would
comparably reduce mandatory spending. Submissions to
increase mandatory spending that do not include a
proposal to offset such increased spending shall be
returned to the agency for reconsideration.

The Director shall have the discretion to determine
whether a proposed offset in mandatory spending is
comparable to the relevant increase in mandatory
spending, taking into account the magnitude of the
offset and the increase and any other factors the
Director deems appropriate.

Sec. 6. Issuance of Administrative PAYGO Guidance and
Revocation of OMB PAYGO Memorandum. Within 90 days of
the date of this order, the Director shall issue
instructions regarding the implementation of this
order, including how agency administrative action
proposals that increase mandatory spending and non-tax
receipts will be evaluated. In addition, within 90 days
of the date of this order, the Director shall revoke
OMB Memorandum M-05-13.

Sec. 7. Waiver. The Director may waive the requirements
of section 5 of this order when the Director concludes
that such a waiver is necessary for the delivery of
essential services, for effective program delivery, or
because a waiver is otherwise warranted by the public
interest.

Sec. 8. Flexibility for the Director of OMB to Pursue
Additional Deficit Reduction. The Director may pursue
additional deficit reduction through agency
administrative actions.

Sec. 9. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or
the head thereof; or

(ii) the functions of the Director relating to budgetary, administrative,
or legislative proposals.

    (b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
    (c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.

    (Presidential Sig.)

THE WHITE HOUSE,

    October 10, 2019.