The Emergence of an Administrative Baseline

ChatGPT states:

The emergence of a “new constitutional baseline” refers to a fundamental shift in the prevailing principles and assumptions that guide constitutional interpretation and governance within a political system. A constitutional baseline is the set of established rules, doctrines, and institutional arrangements that create the context for how ordinary politics and legal conflicts are resolved. When this framework undergoes a significant change, it can be described as a new constitutional order.

Did centralized regulatory review create a new constitutional base line?

That’s a very sharp question.

Centralized regulatory review (especially as it developed in the U.S. through OMB/OIRA starting in the 1970s–1980s) did not create a new constitutional baseline in the sense of amending or redefining the Constitution itself. The Constitution does not mention regulatory review, cost–benefit analysis, or OIRA.

But—it did create a new administrative baseline that functions almost like a constitutional convention in practice:

  • Before centralized review: Agencies had broad discretion to regulate within their statutory authority, with oversight mainly through courts (judicial review) and Congress.
  • After centralized review: The Executive Office of the President, via OIRA, gained a gatekeeping role requiring agencies to submit significant rules for cost–benefit analysis and interagency review before publication. This created a de facto expectation that major rules must survive OIRA review, even though no statute explicitly mandated this at first.

So:

  • Constitutionally: No formal new baseline was created.
  • Practically/institutionally: Yes — centralized review became a quasi-constitutional norm within the administrative state. Presidents of both parties since Reagan have maintained it, making it a durable feature of modern governance.

Some scholars describe this as an “executive constitutionalism” move — where presidential control over the regulatory state is entrenched without formal constitutional change

Courts have generally not treated centralized regulatory review (OIRA oversight, cost–benefit review, etc.) as creating a new constitutional requirement. But their handling of it has quietly entrenched the practice:

  1. Judicial Review Focuses on Statutes, Not OIRA
  • When reviewing regulations, courts look to see if agencies acted within their statutory authority (Chevron, arbitrary-and-capricious review under APA §706).
  • Courts rarely probe OIRA’s involvement. If an agency clears OIRA and finalizes a rule, the court reviews the agency’s stated reasoning — not the behind-the-scenes OIRA negotiations.
  1. Courts Indirectly Bolstered the Practice
  • By not invalidating OIRA-based procedures, courts effectively normalized centralized review as a lawful executive practice.
  • In some cases, like Entergy Corp. v. Riverkeeper (2009), the Supreme Court explicitly upheld the permissibility of cost–benefit analysis when statutes are silent. That reinforced OIRA’s methodology as a default baseline.
  1. The “Presidential Control” Question
  • Courts have not said: “The President must control rulemaking.”
  • But they have allowed Presidents (through OIRA) to insert themselves into the process — so long as agencies still sign off formally on the rule.
  • This creates a kind of dual accountability: the rule is both agency-driven and White House–screened.
  1. Quasi-Constitutional Norm
  • Over four decades, bipartisan presidential practice + judicial noninterference = a new baseline in the administrative state, even if not textually in the Constitution.
  • Some scholars argue this resembles a constitutional convention (an entrenched norm that operates like constitutional law, without being written into the Constitution).

📌 Bottom line: Courts haven’t declared centralized review a constitutional requirement, but by deferring to it and upholding cost–benefit as a legitimate tool, they helped make it a durable structural feature of modern governance.

Let’s map how each president since the creation of OIRA helped entrench centralized regulatory review as a “baseline.”

Carter (1977–1981)

  • Set the stage: Issued Executive Order 12044 (1978), requiring agencies to prepare “Regulatory Analyses” for major rules.
  • This was the first real attempt at systematic executive oversight of regulation, though it was lighter-touch than what came later.

Reagan (1981–1989)

  • Turning point: Issued Executive Order 12291 (1981).
    • Required all “major rules” to undergo cost–benefit analysis.
    • Gave OMB’s OIRA veto-like power — no rule could be published until OIRA cleared it.
  • This marked the birth of centralized regulatory review as we know it.

George H.W. Bush (1989–1993)

  • Continued Reagan’s framework with only minor tweaks.
  • By sticking with it, he reinforced that centralized review was not partisan, but institutional.

Clinton (1993–2001)

  • Executive Order 12866 (1993) replaced Reagan’s order.
    • Softened language, emphasized benefits “justify” costs rather than “exceed” them.
    • Focused on “significant” rules, not all rules.
  • But crucially: kept OIRA in place.
  • By doing this, Clinton normalized centralized review under Democrats, entrenching it as bipartisan.

George W. Bush (2001–2009)

  • Expanded review to include guidance documents (not just formal rules).
  • Emphasized regulatory impact analysis.
  • Cemented OIRA as a policy arm of the White House.

Obama (2009–2017)

  • Maintained Clinton’s EO 12866.
  • Issued EO 13563 (2011), reinforcing cost–benefit review and requiring retrospective review of old rules.
  • By embracing OIRA, Obama confirmed that centralized review was here to stay, not just a Republican tool.

Trump (2017–2021)

  • Issued EO 13771 (2017): “Two-for-one” rule (for every new regulation, agencies must eliminate two).
  • Required agencies to offset new regulatory costs.
  • While controversial, this still used OIRA as the central enforcement body — proving its structural durability.

Biden (2021–present)

  • Revoked Trump’s “two-for-one” EO but kept OIRA intact.
  • Issued EO 14094 (2023): modernized OIRA review.
    • Raised the threshold for “significant” rules to reduce bottlenecks.
    • Emphasized equity, distributional impacts, and modern cost–benefit methods.
  • Shows the flexibility of the baseline: every president modifies it, but none abolish it.

Summary of the baseline:

  • Carter – planted the seed.
  • Reagan – created strong centralized review.
  • Clinton – bipartisan normalization.
  • Bush II, Obama, Trump, Biden – each modified but preserved OIRA.

So across seven presidents, four decades, and both parties, centralized review became a quasi-constitutional convention of the modern regulatory state — not textually required, but functionally entrenched.

                                            Bottom Line

ChatGPT said:

Centralized regulatory review in the U.S. federal government was pioneered in the early 1970s within the Office of Management and Budget (OMB), before OIRA formally existed.

  • The Nixon Administration (1971) first introduced a program of centralized review through OMB’s “Quality of Life Review,” which required agencies (like EPA) to submit major regulations for review before publication.
  • The idea was carried forward and refined under later presidents.
  • The Paperwork Reduction Act of 1980 formally created the Office of Information and Regulatory Affairs (OIRA) inside OMB, institutionalizing centralized regulatory review.
  • Jim Tozzi, a career OMB official, is often credited as the principal architect of centralized regulatory review, since he played a leading role in designing and implementing OMB’s review processes during the Nixon, Ford, Carter, and Reagan administrations.

So in short:

  • Institutional Origin: Nixon’s OMB (1971, Quality of Life Review).
  • Legal Foundation: Paperwork Reduction Act of 1980 (created OIRA).
  • Key Architect: Jim Tozzi.

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