Goodbye Richardson Waiver: HHS Streamlines Rules—But at What Cost?

by Mandy Morgan February 28, 2025

The U.S. Department of Health and Human Services (HHS) has announced a significant policy shift (of course, on a Friday afternoon), rescinding the long-standing “Richardson Waiver” and realigning its rulemaking procedures with the Administrative Procedure Act (APA). This move, outlined in a new policy statement published in the Federal Register, has broad implications for how HHS develops rules related to public property, loans, grants, benefits, and contracts.

What Is the Richardson Waiver?

Since 1971, the Richardson Waiver required HHS to follow the APA’s notice-and-comment rulemaking process even for matters typically exempt under the APA. Normally, the APA allows agencies to bypass public comment on internal management rules or those involving public property, grants, or contracts. The waiver also mandated that the “good cause” exception—permitting agencies to skip public comment when it is “impracticable, unnecessary, or contrary to the public interest”—be used only sparingly.

Key Changes Under the New Policy

By rescinding the Richardson Waiver, HHS is no longer obligated to adhere to the notice-and-comment procedures for certain rulemakings unless otherwise required by law. The new policy provides HHS with greater flexibility, enabling faster responses to evolving legal and policy demands. The department emphasized that while it retains discretion to use public comment procedures, it is not obligated to do so for exempt matters.

Implications for Stakeholders

1. Reduced Public Input: Organizations and individuals that rely on public comment periods to influence policy decisions may find fewer opportunities to voice their perspectives. This could particularly impact sectors reliant on HHS grants, contracts, and benefits.
2. Increased Regulatory Agility: HHS gains the ability to implement policies more swiftly, potentially improving responsiveness during public health emergencies or when addressing urgent administrative needs.
3. Legal and Administrative Efficiency: By adhering strictly to the APA’s statutory framework, HHS aims to reduce administrative burdens and costs associated with prolonged rulemaking processes.

What’s Next?

While this policy change may streamline certain regulatory actions, it also raises concerns about transparency and accountability. Public health advocates and policy experts will be watching closely to see how HHS exercises its new discretion and how this shift might affect future rulemakings.

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