Which of the following statements about formal rulemaking is true?

Formal rulemaking is a specific process prescribed by the Administrative Procedure Act (APA) that requires agencies to engage in procedures that include a trial-type hearing when they are mandated by Congress to do so. This process is typically required in situations where the enabling statute that grants the agency authority to create rules explicitly states that formal rulemaking is to be used. As a result, formal rulemaking is not the default method for all new rules but is only invoked when Congress directly calls for it in legislation.

The other options reflect misunderstandings about the formal rulemaking process. It is not always required for any new rule, as many agencies utilize informal rulemaking methods for broader rule creation. Not all agencies must use formal rulemaking, as only those explicitly directed by Congress are obligated to follow this procedure. Additionally, formal rulemaking applies to federal agencies rather than being confined only to state agencies, which are usually governed by their respective state administrative procedures.