Executive Order 12291

In November 1980, Ronald Reagan was elected president largely on a platform of opposition to the federal government. Reagan argued that the federal government had grown too large and had become too intrusive. He promised to reduce the size and functions of the federal government in many ways, and he used the executive order to pursue his goals.

In March 1981, Reagan issued EO 12291. This order prohibited federal agencies from issuing any new rules or regulations until they had been reviewed by the Office of Management and Budget (OMB). In addition, no regulations could be issued unless OMB certified that the benefits of such regulations outweighed the costs. The effect of this order was to curtail the number of regulations issued by many federal agencies, granting businesses greater freedom from government oversight.

Reagan's actions clearly demonstrate how presidents can achieve policy goals through executive orders. They also demonstrate how temporary these instruments of executive authority can be. The executive orders issued by Reagan were designed to protect big business (a traditional Republican constituency) from governmental regulation, and these policies were generally continued by President Bush after Reagan left office. However, in 1992, Democrat Bill Clinton was elected president. Clinton was more favorable to government regulation of business, and a few months after taking office, he revoked some of Reagan's and Bush's executive orders addressing regulation.