On January 30, 2017, President Trump issued an executive order (EO) entitled Reducing Regulation and Controlling Regulatory Costs. The aim of the EO is to reduce the number of regulations in order to “manage the costs associated with the governmental imposition of private expenditures required to comply with Federal regulations.”
Specifically, the EO requires that whenever an executive department or agency publicly proposes for notice and comment or otherwise promulgates a new regulation, it shall identify at least two existing regulations to be repealed. The EO further dictates that the total incremental costs of all new regulations, including repealed regulations, shall be no greater than zero. The EO defines “regulation” or “rule” as an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or to describe the procedure or practice requirements of an agency but specifically excludes regulations issued with respect to the military, national security, or foreign affairs function of the United States.
Moving forward, the EO also imposes a regulatory budget for fiscal year 2018, which would limit the amount of new regulatory costs agencies can impose on individuals and businesses each year.
While the regulation seems straightforward, its implementation is likely going to be subject to inherent difficulties. For example, some of the challenges include:
- The EO does not define what constitutes an “executive department or agency”.
- It is not entirely clear if independent establishments or government corporations within the executive agency are intended to be included.
- The definition of regulation contained in the EO is rather vague. If interpreted narrowly, it may only involve a minor set of regulations each year.
In a notable – and rather bold – claim, President Trump stated, “We think we can cut regulations by 75 percent. Maybe more, but by 75 percent.” According to Politico, there are more than 171,000 pages of regulations. So even with Trump’s 2-for-1 regulation, the administration would need to issue 85,000 pages just to cut that number in half. NPR has written that even conservative economists say that cutting regulations by 75% is not believable.
See Politico for the full text of the executive order.
About the Author:
Heather Mims is an associate attorney at Centre Law & Consulting. Her practice is primarily focused on government contracts law, employment law, and litigation. Heather graduated magna cum laude from the George Mason School of Law where she was the Senior Research Editor for the Law Review and a Writing Fellow.