01-28-2025

Regulatory Freeze Pending Review

MemorandumView the Original .pdf
View the Original .pdf

The 1-Minute Brief

What: This presidential memorandum, issued on January 20, 2025, orders a temporary halt on new federal regulations. It requires all executive departments and agencies to pause the issuance of new rules, withdraw unpublished rules, and consider delaying the effective date of recently published rules so the new administration can review them.

Money: There is no specific Congressional Budget Office (CBO) score as this is an executive action, not legislation. The financial impact is indirect, potentially delaying or reversing regulations that could have significant economic effects—either by imposing costs on industries or providing economic benefits. For example, so-called "midnight regulations" from a previous administration can sometimes involve annual costs to the economy of $100 million or more.

Your Impact: The most likely direct effect on an average American is a delay or potential reversal of recently finalized federal rules. This could affect various aspects of daily life, from environmental protections and consumer safety standards to workplace regulations and healthcare policies, depending on which specific rules are paused or ultimately altered.

Status: This memorandum was issued by the President on January 20, 2025, and is in effect. It directs the Office of Management and Budget (OMB) to oversee its implementation across federal agencies.

What's Actually in the Bill

This memorandum establishes a temporary, government-wide freeze on the rulemaking process of executive branch agencies. It is intended to give newly appointed agency heads time to review and approve regulations initiated by the previous administration before they can take effect. This is a standard practice for incoming presidential administrations to ensure new policies align with their agenda.

Core Provisions:

  • No New Rules: Prohibits agencies from proposing or issuing any new rule until it is reviewed and approved by a new, presidentially appointed agency head.
  • Withdrawal of Unpublished Rules: Requires agencies to immediately withdraw any rules that have been sent to the Office of the Federal Register (OFR) but have not yet been published.
  • Delay of Published Rules: Instructs agencies to consider postponing the effective date of rules that have already been published but have not yet taken effect for 60 days from the date of the memo.
  • Review and Consultation: During the 60-day delay, agencies are encouraged to open a public comment period to review questions of "fact, law, and policy." Rules that raise substantial issues must be addressed in consultation with the Director of the Office of Management and Budget (OMB).
  • Exemptions: The OMB Director can exempt rules that are necessary for emergency situations or to meet statutory or judicial deadlines.

Stated Purpose (from the Sponsors):

The stated purpose, as outlined in the memorandum, is to ensure that the President's appointees have the opportunity to review any new or pending regulations.

  1. To allow for the review and approval of new regulations by incoming administration officials.
  2. To re-evaluate questions of fact, law, and policy that pending rules may raise.
  3. To ensure that the actions of executive agencies align with the policy priorities of the new administration.

Key Facts:

Affected Sectors: Virtually all sectors regulated by the federal government, including healthcare, finance, technology, energy, and the environment.
Timeline: The initial freeze includes a 60-day delay for published but not-yet-effective rules, starting from January 20, 2025. This can be extended.
Scope: The memorandum applies to all executive departments and agencies and covers a broad range of regulatory actions, including formal rules, guidance documents, and notices of proposed rulemaking.

The Backstory: How We Got Here

Timeline of Events:

The Rise of "Midnight Regulations" (1980s-Present):

The practice of outgoing presidential administrations rushing to finalize new rules in the period between the November election and the January inauguration has become increasingly common. This phenomenon, known as "midnight rulemaking," dates back to at least the Carter administration, which published over 10,000 pages of new rules before Ronald Reagan took office. Since 1948, the Federal Register has averaged 17% more pages during these transition periods when the presidency changes parties. These last-minute rules are often an attempt by an outgoing administration to solidify its policy legacy.

In response, incoming administrations, from Reagan to the present, have frequently used regulatory freezes to halt and review these rules. This back-and-forth has become a standard feature of presidential transitions.

Why Now? The Political Calculus:

  • A regulatory freeze is a tool for a new administration to immediately assert its policy agenda and reverse or reshape the priorities of the previous one.
  • Outgoing administrations often issue a flurry of "midnight regulations" to secure their policy goals before leaving office. The freeze is a direct countermeasure to this tactic.
  • The new President wants to ensure that pending rules align with his administration's legal and policy views, rather than allowing the prior administration's agenda to continue on autopilot.

Your Real-World Impact

The Direct Answer: This directly affects specific groups and industries targeted by recently finalized federal regulations, while the impact on most Americans is indirect and depends on the fate of those rules.

What Could Change for You:

Potential Benefits:

  • For business owners or individuals who believe a pending regulation would be harmful or costly, a freeze provides a window to lobby the new administration to revise or withdraw the rule.
  • It could prevent the implementation of rules that the new administration argues are poorly designed, economically harmful, or an overreach of federal power.
  • Consumers could potentially avoid higher costs that might have been passed on due to new compliance regulations on businesses.

Possible Disruptions or Costs:

Short-term (First 2-3 months):

  • Uncertainty for businesses and organizations that had been preparing to comply with new, now-delayed regulations.
  • The benefits of new rules—such as new environmental protections, consumer safeguards, or worker safety standards—are delayed and may never materialize.

Long-term:

  • The new administration could permanently withdraw or substantially weaken rules finalized by the previous one. For example, rules related to climate change, financial services, or healthcare could be reversed, impacting public health, financial stability, or access to care.

Who's Most Affected:

Primary Groups: Industries with pending regulations (e.g., tech, energy, finance), advocacy groups focused on specific issues (e.g., environmental, labor), and individuals directly impacted by the substance of the delayed rules.
Secondary Groups: The general public, who may experience the downstream effects of altered environmental, health, and safety standards.
Regional Impact: This is a federal action with nationwide scope, so no specific region is disproportionately affected unless a delayed rule was targeted at a particular geographical area or industry concentrated in that area.

Bottom Line: The memorandum itself changes nothing for you today, but it opens the door for the new administration to block or rewrite federal rules that could have affected your health, safety, or wallet.

Where the Parties Stand

Republican Position: "Cutting Red Tape"

Core Stance: Republicans generally support regulatory freezes as a crucial first step to roll back what they often describe as burdensome, costly, and unnecessary regulations from Democratic administrations.

Their Arguments:

  • ✓ Pauses potentially harmful "midnight regulations" that were rushed through without proper vetting.
  • ✓ Allows for a review of rules to assess their economic impact and ensure they are not hurting businesses and job growth.
  • ✓ Reasserts the policy agenda of the newly elected president and the voters who supported him.

Legislative Strategy: While this is an executive action, Republicans in Congress have previously introduced legislation like the "Midnight Rules Relief Act" to make it easier for Congress to overturn multiple regulations from an outgoing administration at once.

Democratic Position: "Protecting Progress"

Core Stance: Democrats generally oppose broad regulatory freezes, arguing they stall important protections for public health, safety, and the environment and create uncertainty.

Their Arguments:

  • ✗ Halts critical regulations designed to protect consumers, workers, and the environment.
  • ⚠️ Creates regulatory uncertainty and disrupts the consistent implementation of laws passed by Congress.
  • ✗ Allows a new administration to undo years of work and expert analysis on important issues with little more than a signature.

Legislative Strategy: While in the minority, Democrats would likely use oversight hearings to scrutinize the administration's decisions on which rules to freeze or repeal. They have also proposed legislation like the "Midnight Regulations Review Act" to require more detailed reporting on last-minute rulemaking.

Constitutional Check

The Verdict: ✓ Constitutional

Basis of Authority:

The President's authority to issue such a memorandum stems from their executive power vested by Article II of the Constitution, which includes the power to oversee the executive branch and direct the actions of federal agencies.

Article II, Section 1, Clause 1 of the U.S. Constitution: "The executive Power shall be vested in a President of the United States of America."
Article II, Section 3 of the U.S. Constitution: "...he shall take Care that the Laws be faithfully executed..."

Constitutional Implications:

[Presidential Supervision]: The memorandum is generally seen as a legitimate exercise of the President's constitutional authority to supervise the officers and agencies of the executive branch.
[Precedent]: It is a long-standing practice. Presidents from both parties, including Reagan, Clinton, George W. Bush, Obama, and Trump in his first term, have issued nearly identical regulatory freeze memos upon taking office.
[Federalism]: This action directly concerns the operations of the federal executive branch and does not inherently overstep into powers reserved for the states.

Potential Legal Challenges:

While the memorandum itself is standard practice, legal challenges can arise from how it is implemented. Courts have previously ruled that simply delaying the effective date of a finalized rule without a proper reason and a new notice-and-comment period can be illegal under the Administrative Procedure Act (APA). Agencies cannot use the freeze to indefinitely shelve or effectively repeal a rule without following the legally required rulemaking process. Groups who support a frozen rule are likely to sue if an agency improperly delays or withdraws it.

Your Action Options

TO SUPPORT THIS ACTION

5-Minute Actions:

  • Contact the White House: Express your support for the regulatory freeze via the White House comment line or website. "I am calling to express my support for the President's regulatory freeze to review burdensome regulations from the previous administration."
  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I support the President's regulatory freeze. I urge [Rep./Sen. Name] to support efforts to reduce burdensome regulations."

30-Minute Deep Dive:

  • Write a Detailed Email: Contact the Office of Management and Budget (OMB), which oversees the freeze, to specify which recently finalized rules you believe should be reviewed or rescinded.
  • Join an Organization: Many business and conservative advocacy groups actively support regulatory reform and will be engaged in this process.

TO OPPOSE THIS ACTION

5-Minute Actions:

  • Contact the White House: Express your opposition to the freeze and ask the administration not to delay or repeal specific rules you care about. "I am concerned that the regulatory freeze will halt important protections for [the environment/consumer safety/etc.]."
  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I am concerned about the regulatory freeze. I urge [Rep./Sen. Name] to conduct oversight and ensure important public protections are not dismantled."

30-Minute Deep Dive:

  • Submit Public Comments: If an agency opens a new comment period for a delayed rule, submit a formal comment explaining why the rule should be implemented as is.
  • Join an Organization: Environmental, consumer protection, and public health advocacy groups will be actively fighting to keep specific regulations from being weakened or repealed.