Regulatory Freeze Pending Review

January 20, 2025

Action Summary

  • Authority & Purpose: The Memorandum is issued under Presidential authority to review and control the rulemaking process for all executive departments and agencies.
  • Rule Issuance Freeze: No rule proposal, issuance, or submission to the Office of the Federal Register (OFR) is permitted until a designated department or agency head (appointed after noon on January 20, 2025) reviews and approves it; delegation of this review power is permitted.
  • Emergency Exemptions: The OMB Director may exempt rules deemed necessary to address emergencies or meet statutory/judicial deadlines.
  • Withdrawal of Pending Rules: Any rules sent to the OFR but not yet published must be immediately withdrawn for the review process, subject to specified exceptions.
  • Postponement of Effective Dates: Published rules or those not yet in effect may have their effective dates delayed by 60 days to allow for review of factual, legal, and policy questions; a comment period may be considered during this period.
  • Further Action on Substantive Issues: Rules without substantial questions require no additional action; those with significant issues must prompt agency consultation with the OMB Director.
  • Compliance & Definitions: Agencies must adhere to all applicable Executive Orders on regulatory management; the term “rule” is broadly defined to include regulatory actions and guidance documents, per relevant legal statutes and previous Executive Orders.
  • OMB Oversight: The OMB Director is tasked with overseeing the memorandum’s implementation, including reviewing pending information collection under the Paperwork Reduction Act, and is the primary point of communication.
  • Future Modifications: The President reserves the authority to modify or extend the memorandum if actions taken before January 20, 2025, undermine its goals.
  • Publication Requirement: The memorandum will be published in the Federal Register and implemented in compliance with applicable law.

Risks & Considerations

  • The regulatory freeze could delay the implementation of new rules that may impact research funding, compliance, and operational procedures at Vanderbilt University. This could affect ongoing projects and future planning.
  • There is a potential risk of uncertainty in regulatory environments, which may impact the university’s ability to plan and execute strategic initiatives, particularly those that rely on federal regulations and guidelines.
  • The review and potential withdrawal of rules could lead to changes in compliance requirements, necessitating adjustments in university policies and procedures to remain compliant with federal regulations.
  • Vanderbilt University may need to engage in the comment period to ensure that its interests and concerns are considered in the review of postponed rules, particularly those affecting higher education and research funding.

Impacted Programs

  • Office of Research may need to closely monitor changes in federal regulations that could impact research funding and compliance requirements.
  • Legal and Compliance Departments will need to stay informed about regulatory changes to ensure that the university remains compliant with federal laws and guidelines.
  • Government Relations Office might need to increase its advocacy efforts to influence regulatory decisions that could impact the university’s operations and funding.

Financial Impact

  • Delays in the implementation of new regulations could impact the timing and availability of federal funding, potentially affecting the university’s budget and financial planning.
  • Changes in regulatory requirements may necessitate additional resources for compliance and legal reviews, impacting operational costs.
  • Potential shifts in federal funding priorities could affect grant opportunities and necessitate adjustments in research funding strategies.

Relevance Score: 3 (The regulatory freeze presents moderate risks involving compliance and potential impacts on funding and strategic planning.)

Key Actions

  • Office of Federal Relations should monitor the regulatory freeze and review process closely to identify any rules or regulations that may impact Vanderbilt University. This will help ensure that the university is prepared to respond to any changes that could affect its operations or funding.
  • Legal Affairs Office should evaluate the implications of the regulatory freeze on existing and pending regulations that may affect the university. This includes assessing any potential delays in the implementation of rules that could impact research funding, compliance requirements, or educational policies.
  • Research Administration should prepare for potential changes in federal research funding and compliance requirements due to the regulatory review process. By staying informed and proactive, the university can mitigate risks associated with delayed or altered regulations.

Opportunities

  • The regulatory freeze provides an opportunity for Vanderbilt’s Policy Research Institute to engage in research and analysis of the impact of regulatory changes on higher education. This research can position the university as a thought leader in understanding and navigating regulatory environments.
  • Vanderbilt’s Government Relations Team can use this period to strengthen relationships with federal agencies and policymakers. By providing input during the comment periods, the university can influence the development of regulations that align with its strategic goals.

Relevance Score: 3 (Some adjustments are needed to processes or procedures to address potential impacts of the regulatory freeze on university operations.)

Average Relevance Score: 4

Timeline for Implementation

  • Immediate: Withdraw any rules that have been sent to the Office of the Federal Register but not yet published.
  • January 20, 2025: No new rule proposals shall be forwarded until a department or agency head appointed after noon on this date has reviewed and approved them.
  • 60-Day Period: Postpone the effective date of rules already published (or issued but not yet in effect) for 60 days to allow for a review process.

Relevance Score: 5

Impacted Government Organizations

  • Executive Departments and Agencies: All agencies across the executive branch are required to comply with this memorandum and review rulemaking actions before they are finalized.
  • Office of the Federal Register (OFR): The OFR is directly affected as rules submitted for publication must be withdrawn pending review, ensuring compliance with the new approval process.
  • Office of Management and Budget (OMB): The OMB Director plays a central role by overseeing the implementation of the memorandum, approving exemptions for emergency situations, and establishing processes for additional reviews.

Relevance Score: 5 (The directive applies across the entire executive branch, impacting all executive departments and agencies.)

Responsible Officials

  • Department or Agency Heads – Responsible for reviewing and approving rules proposed by their respective departments or agencies, with the authority to delegate this review process.
  • OMB Director – Oversees the implementation of the memorandum, may exempt rules in emergency situations, and is the primary contact for communications regarding the review process.

Relevance Score: 4 (Directives affect agency heads and a senior OMB official, significantly impacting the highest levels of agency oversight and regulatory action.)