Executive Order 12893: Principles for Federal Infrastructure Investments

President: Bill Clinton

Required benefit-cost, life-cycle, maintenance, demand-management and performance analysis for federal infrastructure spending; later program law controls individual investments.

Status: In effect. Is Executive Order 12893 still in effect? Yes. Executive Order 12893 remains in effect. See Federal Register record.

What does Executive Order 12893 do?

EO 12893 directs agencies responsible for transportation, water, energy and environmental infrastructure to use systematic benefit-cost analysis, consider uncertainty and alternatives, maintain existing assets, manage demand, encourage efficient pricing and assess program performance. Agencies were to develop implementation plans and report progress through OMB. The reviewed official disposition materials do not identify an express revocation, although later statutes, OMB guidance and program-specific rules govern current decisions.

Administration position: The order argued that disciplined analysis and maintenance would improve investment value. It did not predetermine which project should be funded or make quantified benefits legally conclusive.
SignedJanuary 26, 1994
ScopeFederal infrastructure spending and grants
Core methodLife-cycle benefit-cost and alternatives analysis

Before and after

Before the order

Agencies used program-specific appraisal methods without this common set of presidential infrastructure principles.

After the order

Covered agencies were directed to compare alternatives, life-cycle effects, maintenance and demand management and to evaluate program results.

Who had to do what

Agency / officeActionTiming / position
Infrastructure agenciesDevelop and implement plans using the stated principlesDuring program planning
AgenciesCompare benefits, costs, uncertainty and alternativesFor covered investment decisions
OMBCoordinate implementation and reportingThrough budget and management review

What happened next

EO 12893 established the investment principles.

No express revocation was identified in the reviewed official sources.