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[EXTERNAL] Letter from 130 state leaders: supporting dereg + policy recommendations From: To: Date: Attachments: Hugh - Jennifer Butler "Pike, Hugh D. EOP/OMB" <(b)(6) Sat, 15 Mar 2025 10:08:33 -0400 OMB-Federalism-EO-Coalition-Letter_March-202522.pdf (285.95 kB) Congratulations on your role at OMB! I wanted to flag the attached letter, coordinated by State Policy Network's Center for Practical Federalism and signed by over 130 state leaders. The letter celebrates President Trump's Executive Order Unleashing Prosperity Through Deregulation and highlights key next steps. Since the EO directs OMB to issue implementation guidance, the letter outlines five recommendations to strengthen the regulatory process and limit federal overreach by maximizing federalism. These recommendations include: Mandate Federalism Impact Assessments -- Require agencies to assess how regulations affect state authority, justify federal oversight, and analyze financial burdens on states. Formalize State Consultation -- Agencies must consult with state officials before finalizing rules to ensure state expertise is considered in regulatory decisions. Require Public Disclosure -- Agencies should publicly release federalism impact assessments to enhance transparency. Implement Federalism Training -- Train agency personnel on federalism principles and require annual compliance reports to prevent regulatory expansion. Establish OMB Federalism Review -- A dedicated OMB function should ensure agencies comply with federalism rules and prevent improper preemption of state authority. Attached is the letter and here is a link to an op-ed that ran earlier this week. If you're interested, we would be happy to organize a roundtable with supportive state leaders to discuss ways to strengthen federalism reviews, which have been weakened over time. Please circulate as appropriate. We want to be a resource for your efforts--this is a rare opportunity to right-size the federal government, and states must be a key partner in making it happen. Warm regards, Jennifer Butler I Senior Policy Advisor I State Policy Network I (b)(6) 1 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 OMBA317FY25825_000000503 SC_EVERSPLIT0021895 RTATr Dr), Iry NETWORK State Solutions. National Impact. 2 Sierra Club v. OMB, Case No. 25-cv- 05732-LJC OMB 2025-825 OMBA317FY25825_000000503 SC_EVERSPLIT0021896