ExecutiveOrdersEO
EO 13966Executive OrderTrump 45 · R

Executive Order 13966

Increasing Economic and Geographic Mobility

This executive order directs federal agencies to review their occupational licensing regulations and policies to reduce barriers to worker mobility, particularly for military spouses and individuals with criminal records. It establishes six principles for state-level occupational licensing reform and creates a reporting system to identify and reward states that adopt less restrictive licensing requirements.

Federal Register Open PDF 85 FR 81777

Impact dates

  1. SBA public report on state/tribal compliance with licensing principles

  2. Domestic Policy Assistant report on federal law changes, agency reward actions, and state evaluation criteria

  3. Agency review and report on regulatory alignment with principles

  4. Agency report on recommended reward actions for compliant states

Key directives

  • Agency heads must review authorities and regulations for alignment with six principles within 90 days
  • Agency heads must submit alignment reports to OMB, Domestic Policy, and IGA within 90 days
  • Agency heads must submit recommended reward actions for compliant states within 90 days
  • Assistant to President for Domestic Policy must submit report on federal law changes and state reward criteria within 120 days
  • SBA Administrator must seek state/tribal information and publish public report on compliance within 180 days
  • All recurring reports repeat every 2 years
  • Agencies shall implement approved reward actions for compliant states

Who is ordered

Timeline

Immediate

  • EO establishes policy principles for occupational licensing reform
  • Agencies directed to begin review processes

Near term (90d)

  • Agency reports due on regulatory alignment (90 days)
  • Agency reports due on recommended reward actions (90 days)
  • Domestic Policy Assistant report due on federal law changes (120 days)

Long term

  • SBA public report on state compliance with principles (180 days)
  • Biennial reporting cycle begins for all recurring obligations
  • Potential federal incentives for compliant states pending presidential approval

Risks & tensions

  • EO relies on voluntary state adoption of principles; no enforcement mechanism for non-compliant states
  • Reward actions contingent on presidential approval, creating uncertainty about actual incentives
  • Definition of 'least restrictive to competition sufficient to protect consumers' leaves room for interpretation
  • Military spouse accommodation (Principle 6) lacks specificity on what accommodations are required
  • Biennial cycle may result in limited action during final weeks of administration
  • Preliminary application process for individuals with criminal records (Principle 4) is encouraged, not mandated
Executive Order 13966: Increasing Economic and Geographic Mobility · Executive Orders