Burden and the Paperwork Reduction Act: An Overview

Burden and the Paperwork Reduction Act: An Overview

May 22, 2024
Burden and the Paperwork Reduction Act: An Overview
A fundamental purpose of the Paperwork Reduction Act
Under OMB’s regulations, the time, effort, and money to
(PRA)—codified at Title 44, Sections 3501-3521, of the
comply with a collection requirement that would be
U.S. Code—is to minimize the burden that federal
incurred by persons does not constitute burden when an
information collections impose on the public. Agencies
agency can demonstrate that such activities are “usual and
must often collect information to fulfill their missions and
customary.” Additionally, burden would not be imposed in
must identify the practical utility, or usefulness, of
a federally required collection carried out by a state, local,
collecting such information. At the same time, these
or tribal government if the federal agency can show that the
collections also represent a burden to the public that can be
state, local, or tribal collection would be necessary even in
measured in terms of time, effort, and financial resources.
the absence of a federal requirement. For example, the
The PRA attempts to reduce information collection burdens
Department of Labor stated that the burden of a certain
by establishing an overarching framework for information
information collection it conducts is minimal because the
resource management (IRM). IRM is defined as “the
collection activities (e.g., maintaining records) are a
process of managing information resources to accomplish
necessary part of normal state labor exchange operations.
agency missions and to improve agency performance,
including through the reduction of information collection
Managing Burden. The PRA establishes requirements for
burdens on the public.” The PRA centralizes responsibility
agencies’ information collection activities and expects that
for government-wide IRM policies and the reduction of
agencies will manage information to reduce information
information collection burdens with the Office of
collection burdens. At different times, the PRA has
Information and Regulatory Affairs (OIRA) within the
assigned different roles within agencies with these
Office of Management and Budget (OMB). The
responsibilities. Statute currently assigns agencies’ chief
effectiveness of the PRA at reducing burden has been a
data officers (CDOs) with carrying out the PRA’s agency-
topic of congressional oversight. The Government
level information collections and general IRM
Accountability Office (GAO) has also reported on various
responsibilities. CDOs have several functions under statute
aspects of the PRA’s implementation. This In Focus
related to agencies’ data management and data use.
provides an overview of burden in the context of the PRA,
including how it is estimated and efforts to reduce it.
Burden Estimates
The PRA tasks OMB with reviewing and approving
Burden in Context
information collections that agencies seek to conduct.
Burden occurs within the context of a collection of
Under the PRA, agencies must develop specific, objectively
information. The PRA defines collections to include
supported estimates of burden as part of their activities to
requirements or requests from or on behalf of an agency for
develop information collections. Agencies submit these
10 or more persons to provide information through identical
estimates to OIRA as part of their supporting statements—
questions, recordkeeping, or disclosures to the public or a
which include responses to a standardized list of 18
third party. Persons in this context includes individuals,
questions—when seeking OIRA’s approval of an
businesses, organizations, state and local governments, and
information collection.
territories. Collections may be in any form or format and
include electronic or automated methods. For more on
Hours and Costs. Agencies estimate burden for
federal collections of information, see CRS In Focus
information collections in terms of burden hours and burden
IF11837, The Paperwork Reduction Act and Federal
costs. Burden hours are a product of (1) the number of
Collections of Information: A Brief Overview.
respondents, (2) the frequency at which responses are
provided within a year, and (3) the average time to provide
Defining Burden. The time, effort, and financial resources
a response. This results in total annual burden hours. GAO
required to respond to an information collection—or
has reported that agencies largely rely on existing data to
burden—includes “reviewing instructions; acquiring,
estimate burden hours, including historical data, other data
installing, and utilizing technology and systems; adjusting
available within an agency, third-party data, and research
the existing ways to comply with any previously applicable
studies. In the absence of existing data, agencies may rely
instructions and requirements; searching data sources;
on their professional judgment.
completing and reviewing the collection of information;
and transmitting, or otherwise disclosing the information.”
Agencies are also instructed to calculate the cost of burden
Burden can be incurred in any information collection,
hours to respondents by identifying and using appropriate
whether mandatory, voluntary, or required to obtain or
wage rate categories. Separate from wages, agencies also
retain a federal benefit.
estimate burden in terms of (1) total capital and start-up
costs and (2) total costs for operations and maintenance and
the purchase of services. Examples of these costs include
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Burden and the Paperwork Reduction Act: An Overview
technology, system, and storage acquisitions and for testing
respondents, take the longest to complete, are subject to
and monitoring equipment.
high error rates, or are frequently submitted as incomplete.
Governmentwide Burden. The PRA directs OMB to set
In response to a number of executive orders from President
burden reduction goals for agencies and to report to
Biden, OMB issued a memorandum in April 2022 to
Congress on burden reduction. OMB issues an annual
agencies on reducing burden in public benefit programs. It
“information collection budget,” which contains
instructed agencies to better estimate burden by considering
government-wide burden hours for a given year and
psychological and learning costs (e.g., time to comprehend
documents efforts to reduce burden. These reports show
eligibility requirements, delays in completing a form due to
that, since at least FY2009, the Treasury Department has
stress). OMB noted that these costs may result in more
been consistently responsible for a majority of the
complete but potentially higher burden estimates. It also
government’s total burden hours, followed by the
stated that while agencies are generally aware of how
Department of Health and Human Services. Government-
increases in burden are perceived, increases due to more
wide burden totals can increase or decrease for a number of
rigorous analysis and transparency into the burdens of
reasons, including discretionary agency actions,
information collections are examples of how agencies are
reestimations of burden hours, renewals or lapses in
improving such collection requests. In the memorandum,
approved information collections, and new statutory
OMB also pointed to activities that reuse existing data—
requirements. For example, total burden hours reportedly
such as data matching, using automatic program
increased by 1%—or 78 million total hours—from FY2021
enrollment, and prepopulating forms with existing
to FY2022 because of statutory changes.
information—as potential options for reducing burden.
Accuracy of Burden Estimates. As part of the information
Information Technology and Burden Reduction. The
collection approval process, OMB evaluates whether the
PRA directs OMB to promote the use of information
information collection minimizes burden. OMB has stated
technology (IT) to reduce burden. Within agencies, chief
“that measuring burden is often difficult and imprecise in
information officers are to promote the use of IT to reduce
the absolute, but reliable and consistent measures of
burdens. The House committee report on the E-Government
changes are possible.” In 2018, at the request of the Senate
Act of 2002 noted some concerns over OIRA’s oversight of
Committee on Homeland Security and Governmental
the PRA’s IRM mandates. The committee moved forward
Affairs, GAO reported on the processes that produce
with passing the E-Government Act’s framework for
burden estimates. GAO found that agencies do not receive
managing electronic government—which relies on agencies
many comments on burden estimates from the public during
using IT to improve operations—as separate from the
the PRA’s required notice and comment periods and that
PRA’s IRM framework while acknowledging that
agencies are unlikely to consult with the public on burden
addressing IRM under the PRA was an option for managing
estimates beyond these required Federal Register notices.
electronic government. Nevertheless, the E-Government
GAO also reported that OIRA has at times approved
Act attempted to reduce burden—adopting the PRA’s
information collections that do not estimate the cost of
definition of it—through the use of activities that involved
burden hours. Additionally, GAO found mathematical
integrating data, eliminating duplicative data, and enabling
errors in estimates and inconsistencies in some of the
interoperability among federal information systems. The
burden data that is published on reginfo.gov. GAO states
committee stated that such activities sought to reduce
that OMB developed pra.digital.gov in response to GAO’s
stovepipes and reporting burdens through the idea of
recommendations that OMB ensure uniformity in estimates
“collect once and use many,” which meant to reuse existing
and ensure that review processes are operating effectively.
data across many government purposes and transactions.
Efforts to Reduce Burden
Considerations for Congress
The PRA directs OMB to minimize burdens, “with
Congress may have options for improving data reuse to
particular emphasis on those individuals and entities most
reduce burden under the PRA. For example, the Computer
adversely affected.” OMB has issued guidance to agencies
Matching and Privacy Protection Act of 1988 (CMPPA)
with approaches to reducing burden. Some of this guidance
governs administrative processes for certain cases of data
has been in response to executive orders. For example, in
matching between federal agencies and between agencies
2012, OMB issued a memorandum in response to E.O.
and certain nonfederal recipients of federal data. A report
13610, Identifying and Reducing Regulatory Burdens, that
sponsored by the Administrative Conference of the United
provided agencies with examples of ways to reduce burden,
States suggested that the CMPPA could be amended to
including those that simplify and streamline information
include purposes that reduce burden. Congress may also
collections, such as by using electronic methods for
consider data management to reduce burden. For example,
collecting information and maximizing the reuse of
GAO has reported that government-wide data standards
previously collected data. In 2015, OMB issued a
could reduce burden in some cases. Some OMB guidance
memorandum in response to E.O. 13707, Using Behavioral
advises agencies to use data standards to enable
Science Insights to Better Serve the American People,
interoperability, to leverage data standards for several
encouraging agencies to use behavioral science to improve
reasons, and to plan for data reuse. Using data standards can
federal forms, because “designing questions in ways that
also be challenging, in part because they operate within
provide useful information for agencies can be more
multiple policy frameworks that may require additional
difficult than it seems.” OMB encouraged agencies to apply
coordination.
behavioral science insights to forms that affect the most
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Burden and the Paperwork Reduction Act: An Overview

Natalie R. Ortiz, Analyst in Government Organization and
Management
IF12673

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