The Working Group has welcomed the input of State and local government officials and others who share ideas to promote State and local innovation, flexibility and accountability. The President has directed the Working Group to present him with a Federalism Executive Order, and a report with recommendations to promote the principles of federalism, by the end of August. In conclusion, the Unfunded Mandates Reform Act was an important step in restoring greater balance and mutual respect to the federal system. It has raised awareness of the importance of State, local and tribal government and private sector concerns among agency decisionmakers. However, more work is needed in order to achieve the goals of the Act.
Consultation means little if it occurs after the opportunity to improve a rule is passed.
Agencies should consult with State and local governments, including their elected officials and Washington representatives, before they have committed to any particular rulemaking alternative. Second, we will bring more uniformity to the consultation process to help both agencies and our intergovernmental partners know when, how and with whom to communicate. Third, we will enforce the Unfunded Mandates Reform Act to ensure that agencies are complying with both the letter and the spirit of the law. If an agency is unsure whether a rule contains a significant mandate, it should err on the side of caution and prepare a mandates impact statement prior to issuing the regulation. Mr. Chairmen, the Administration is committed to securing greater involvement with our intergovernmental partners in Federal decisionmaking.