Increasing Government Accountability for Administrative Actions by Reinvigorating Administrative PAYGO

What it means

Requires federal agencies to offset any proposed increases in mandatory spending with comparable spending reductions elsewhere. Agencies must submit proposals to the OMB Director for review before implementing actions that would increase spending.

Expected impact

• Stronger fiscal restraint on federal agencies when implementing new programs or regulations
• Potential slowdown in creating new government initiatives that increase mandatory spending
• Enhanced budgetary oversight as agencies must justify spending increases with corresponding cuts
• More transparency in the administrative rulemaking process regarding fiscal impacts