In this engaging discussion, John D. Graham, former OIRA Administrator under George W. Bush and a regulatory policy expert, sheds light on the inner workings of the Office of Information and Regulatory Affairs. He shares insights on the evolution of cost-benefit analysis, the agencies that often resist OIRA, and the persistent challenge of command and control regulations. Graham also compares his regulatory philosophies with Dick Cheney's and highlights the intriguing dynamics of navigating regulatory politics within the government.
OIRA's establishment marked a significant shift in federal regulatory oversight, requiring agencies to seek approval before implementing major regulations.
The evolution of cost-benefit analysis within OIRA has enhanced the scrutiny of regulations, although challenges in thorough assessments still exist.
The rapid advancement of technology, particularly in AI, poses new regulatory challenges, highlighting the need for improved expertise and proactive measures by OIRA.
Deep dives
Understanding the Role of OIRA
The Office of Information and Regulatory Affairs (OIRA) plays a crucial role in the regulatory process by reviewing significant regulations proposed by federal agencies. Agencies like the FDA may request regulations on various issues, such as labeling requirements for food products, which OIRA can either approve or suggest changes to. For instance, OIRA collaborated with the FDA to add trans fat content to food labels, demonstrating how it influences regulatory decisions. OIRA does not directly allocate federal funds; instead, it ensures that regulatory actions align with broader government priorities and standards.
Evolution of Regulatory Oversight
The regulatory oversight landscape has significantly evolved since the establishment of OIRA, particularly during the Reagan administration, which emphasized rigorous review processes. Before this, agencies operated with considerable leeway, often referred to as the 'fourth branch' of government, acting without much oversight from the executive branch. Reagan's executive order mandated that agencies must obtain OIRA's approval before publishing major regulations, fundamentally altering the power dynamics within federal governance. This shift aimed to ensure that regulations are not only effective but are also subjected to thorough scrutiny and cost-benefit analysis.
Challenges of Cost-Benefit Analysis
The practice of cost-benefit analysis has matured but remains a challenging aspect of regulatory development within OIRA. Initially, agencies like the EPA struggled to perform meaningful cost-benefit analyses, often presenting regulations without assessing their financial implications thoroughly. Over time, the sophistication of these analyses has improved, particularly in environmental economics, where quantifying benefits against costs has become more common. However, the challenges persist, as agencies may still shy away from robust analyses, leading to conflicts in regulatory decision-making and judicial challenges.
Political Dynamics and Agency Relationships
The relationship between OIRA and federal agencies is marked by inherent tension, often described as adversarial. Agencies may resist OIRA's attempts to impose oversight due to their own bureaucratic interests and objectives, making collaboration a complex process. Political motivations play a significant role, with presidents of both parties recognizing the necessity to guide agency actions closely to avoid political fallout from unpopular regulations. Over time, this understanding has altered perceptions of OIRA, allowing even Democratic administrations to utilize it to align agency actions with presidential priorities.
Addressing Emerging Regulatory Challenges
As technology rapidly progresses, significant regulatory challenges loom, particularly concerning artificial intelligence and other disruptive innovations. There is a growing consensus that the federal government lacks sufficient expertise to regulate these technologies effectively, risking hasty and ineffective regulations being implemented. OIRA is called to action for better organization and education on emerging technologies to prevent adverse outcomes stemming from ill-informed regulatory approaches. This proactive stance is essential as the regulatory landscape will soon need to address innovations like self-driving cars, which will require carefully calibrated policies to ensure safety and efficacy.
Sid had also written to me, saying he’d love a Statecraft interview about OIRA, the Office of Regulatory Affairs. It's the division of the Office of Management and the Budget that reviews all major regulations from agencies.
I thought this was a great idea, and I asked if he'd be interested in co-hosting an episode with me. Here’s the result: an interview with John D. Graham, who was the administrator of OIRA under George W. Bush.
Timestamps:
(00:00) Introduction
(00:43) Where OIRA comes from
(09:20) How cost-benefit analysis got better
(12:59) How OIRA kills regulations
(26:51) Which agencies hate OIRA most
(34:31) Why command and control regulation persists
(39:44) What regulations OIRA focuses on
(46:10) John D. Graham vs. Dick Cheney
(50:46) Graham and the English First movement
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
