Presidential Documents

81777 

Federal Register 

Vol. 85, No. 243 

Thursday, December 17, 2020 

Title 3— 

The President 

Executive Order 13966 of December 14, 2020 

Increasing Economic and Geographic Mobility 

By the authority vested in me as President by the Constitution and the 

laws of the United States of America, including section 305 of title 5, 

United States Code, and section 301 of title 3, United States Code, it is 

hereby ordered as follows: 

Section 1. Policy and Principles. As expressed in Executive Order 13777 

of February 24, 2017 (Enforcing the Regulatory Reform Agenda), it is the 

policy of the United States to alleviate unnecessary regulatory burdens placed 

on the American people. Overly burdensome occupational licensing requirements can impede job creation and slow economic growth, which undermines 

our Nation’s prosperity and the economic well-being of the American people. 

Such regulations can prevent American workers and job seekers from earning 

a living, maximizing their personal and economic potential, and achieving 

the American Dream. The purpose of this order is to reduce the burden 

of occupational regulations in order to promote the free practice of commerce, 

lower consumer costs, and increase economic and geographic mobility, including for military spouses. 

My Administration is committed to continuing this important work by 

partnering with State, local, territorial, and tribal leaders throughout the 

country to eliminate harmful occupational regulations, which are frequently 

designed to protect politically connected interest groups. To this end, in 

October 2019, my Administration announced the establishment of the Governors’ Initiative on Regulatory Innovation, which works with State, local, 

and tribal leaders to advance occupational licensing reforms, better align 

State and Federal regulations, and eliminate unnecessary regulations that 

drive up consumer costs. 

Occupational regulations can protect practitioners from competition rather 

than protect the public from malpractice. Unfortunately, the number of 

occupational regulations has substantially increased over the last few decades. Since the 1950s, the percentage of jobs requiring a government-mandated occupational license has increased from less than 5 percent to between 

25 and 30 percent. By requiring workers to acquire new licenses when 

they move to a new jurisdiction, occupational regulations reduce worker 

mobility, disproportionately harm low-income Americans, and are particularly burdensome to military spouses who must relocate to support the 

service members committed to keeping our country safe. Additionally, blanket prohibitions that prevent individuals with criminal records from obtaining 

occupational licenses may exacerbate disparities in employment opportunity 

and increase the likelihood of recidivism, particularly as regulatory barriers 

to enter lower- and middle-income occupations are associated with higher 

recidivism rates. Licensing requirements unnecessary to protect consumers 

from significant and demonstrable harm also frequently impose expensive 

educational requirements on potential job seekers, even for occupations with 

limited future earnings potential. According to recent research, licensing 

requirements have cost our country an estimated 2.85 million jobs and 

over $200 billion annually in increased consumer costs. 

Therefore, it is the policy of the United States Government to support 

occupational regulation reform throughout the Nation, building on occupational licensing reforms enacted most recently in Arizona, Florida, Iowa, 

Missouri, and South Dakota, guided by six principles: 


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Principle 1. All recognized occupational licensure boards should be subject 

to active supervision of a designated governmental agency or office. 

Principle 2. All occupational licensure boards recognized by a State, territorial, or tribal government that oversee personal qualifications related to 

the practice of an occupation should adopt and maintain the criteria and 

methods of occupational regulation that are least restrictive to competition 

sufficient to protect consumers from significant and demonstrable harm to 

their health and safety. The policies and procedures of such boards should 

be designed to protect consumer and worker safety and to encourage competition. 

Principle 3. State, territorial, and tribal governments should review existing 

occupational regulations, including associated scope-of-practice provisions, 

to ensure that their requirements are the least restrictive to competition 

sufficient to protect consumers from significant and demonstrable harm. 

State, territorial, and tribal governments should also regularly review and 

analyze all occupational regulations, including associated personal qualifications required to obtain an occupational license, to ensure the adoption 

of the least restrictive requirements necessary to protect consumers from 

significant and demonstrable harm. 

Principle 4. Individuals with criminal records should be encouraged to submit 

to the appropriate licensure board a preliminary application for an occupational license for a determination as to whether the criminal record would 

preclude their attainment of the appropriate occupational license. 

Principle 5. A State, territorial, or tribal government should issue an occupational license to a person in the discipline applied for and at the same 

level of practice if the individual satisfies four requirements: 

(a) the individual holds an occupational license for that discipline from 

another jurisdiction in the United States and is in good standing; 

(b) the individual verifies having met, as applicable, the minimum examination, education, work, or clinical-supervision requirements imposed by the 

State, territory, or tribe; 

(c) the individual: 

(i) has not had the license previously revoked or suspended; 

(ii) has not been disciplined related to the license by any other regulating 

entity; and 

(iii) is not subject to any pending complaint, allegation, or investigation 

related to the license; and 

(d) the individual pays all applicable fees required to obtain the new 

license. 

Principle 6. Accommodations should be made for any applicant for an 

occupational license who is the spouse of an active duty member of the 

uniformed services and who is relocating with the member due to the 

member’s official permanent change of station orders. 

Sec. 2. Review of and Report on Authorities, Regulations, Guidance, and 

Policies. The head of each executive department and agency (agency) shall, 

within 90 days of the date of this order and every 2 years thereafter: 

(a) review the agency’s authorities, regulations, guidance, and polices to 

identify changes necessary to ensure alignment with the principles set forth 

in section 1 of this order; and 

(b) submit a report to the Director of the Office of Management and 

Budget (Director of OMB), the Assistant to the President for Domestic Policy, 

and the Assistant to the President and Director of Intergovernmental Affairs 

(Director of IGA) identifying all necessary changes identified pursuant to 

subsection (a) of this section. 

Sec. 3. Identification and Report of Opportunities to Encourage Occupational 

Regulation Reform. (a) Within 90 days of the date of this order, and every 

2 years thereafter, the head of each agency shall submit a report to the 


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Director of OMB, the Assistant to the President for Domestic Policy, and 

the Director of IGA identifying a list of recommended actions available 

to any and all agencies to recognize and reward State, territorial, and tribal 

governments that have in place policies and procedures regarding occupational regulation that are consistent with the principles set forth in section 

1 of this order; and 

(b) Within 120 days of the date of this order, and every 2 years thereafter, 

the Assistant to the President for Domestic Policy, in consultation with 

the Secretary of Commerce, the Secretary of Labor, the Director of OMB, 

the Administrator of the Small Business Administration, the Director of 

IGA, and the heads of other agencies and offices as appropriate, shall submit 

a report to the President identifying: 

(i) recommended changes to Federal law, regulations, guidance, and other 

policies to ensure alignment with the principles set forth in section 1 

of this order; 

(ii) recommended actions to be taken by agencies to recognize and reward 

State, territorial, and tribal governments that have in place policies and 

procedures regarding occupational regulation that are consistent with the 

principles set forth in section 1 of this order; and 

(iii) a list of criteria that may be used to evaluate whether a State, territorial, 

or tribal government has in place policies and procedures that are consistent with the principles set forth in section 1 of this order. 

Sec. 4. Implementation of Recommendations to Recognize and Reward State, 

Territorial, and Tribal Regulatory Reform. (a) Within 180 days of the date 

of this order, and every 2 years thereafter, the Administrator of the Small 

Business Administration, in consultation with the Secretary of Commerce, 

the Secretary of Labor, the Secretary of Health and Human Services, and 

the heads of other agencies as appropriate, shall seek and report on information from State, territorial, and tribal governments regarding whether they 

have in place policies and procedures consistent with the principles set 

forth in section 1 of this order and shall make the report publicly available, 

including on agencies’ websites. The information sought shall be consistent 

with the criteria identified as required by section 3(b)(iii) of this order. 

(b) Consistent with applicable law, and to the extent that the President 

approves any of the actions recommended pursuant to section 3(b)(ii) of 

this order, agencies shall implement such actions for the purpose of recognizing and rewarding a State, territorial, or tribal government that has in 

place policies and procedures regarding occupational regulation that are 

consistent with the principles set forth in section 1 of this order. 

Sec. 5. Definitions. For the purposes of this order: 

(a) ‘‘Active supervision’’ means: 

(i) reviewing proposed occupational licensure board rules, policies, or 

other regulatory actions that may restrict market competition prior to 

issuance; 

(ii) ensuring that any entity seeking to impose occupational licensing 

criteria adopts the criteria that are least restrictive to competition sufficient 

to protect consumers from significant and demonstrable harm to their 

health or safety; and 

(iii) analyzing, where information is readily available, the effects of proposed rules, policies, and other regulatory actions on employment opportunities, consumer costs, market competition, and administrative costs. 

(b) ‘‘Agency’’ has the meaning given that term in section 3502(1) of title 

44, United States Code, except that the term does not include the agencies 

described in section 3502(5) of title 44, United States Code, other than 

the Bureau of Consumer Financial Protection. 

(c) ‘‘Occupational license’’ means a license, registration, or certification 

without which an individual lacks the legal permission of a State, local, 

territorial, or tribal government to perform certain defined services for compensation. 


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(d) ‘‘Occupational regulation’’ includes: 

(i) licensing or government certification, by which a government body 

requires personal qualifications in order to be permitted to practice an 

occupation; and 

(ii) registration, bonding, or inspections, by which a government body 

does not require personal qualifications in order to be permitted to practice 

an occupation. 

Sec. 6. General Provisions. (a) Nothing in this order shall be construed 

to impair or otherwise affect: 

(i) the authority granted by law to an executive department or agency, 

or the head thereof; or 

(ii) the functions of the Director of the Office of Management and Budget 

relating to budgetary, administrative, or legislative proposals. 

(b) This order shall be implemented consistent with applicable law and 

subject to the availability of appropriations. 

(c) This order is not intended to, and does not, create any right or benefit, 

substantive or procedural, enforceable at law or in equity by any party 

against the United States, its departments, agencies, or entities, its officers, 

employees, or agents, or any other person. 

THE WHITE HOUSE, 

December 14, 2020. 

[FR Doc. 2020–27948 

Filed 12–16–20; 8:45 am] 

Billing code 3295–F1–P 


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