Trump Signs Deregulation Directive to ‘Ignite Economic Growth’
New rules state that for each proposed federal regulation, ten must be removed from the Federal Register.
On January 31, President Donald Trump signed an executive order mandating that federal agencies limit their regulatory impositions by eliminating 10 existing regulations for every new rule established.
“This approach is designed to ensure that the financial impact of prospective regulations is managed effectively through a thorough regulatory budgeting process,” Trump stated.
The executive order, titled “Unleashing Prosperity Through Deregulation,” aims to clear away regulatory barriers that hinder growth.
According to the order, “The continuously growing tangle of complex federal regulations inflicts significant costs on millions of Americans, acts as a considerable constraint on our economic expansion and capacity for innovation, and undermines our competitiveness in the global marketplace.”
The necessity for deregulation, as claimed by the president, arises from the challenges many businesses and consumers face in navigating the complex rules.
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Deregulation plays a crucial role in Trump’s economic strategy, aiming to create better prospects for businesses and job seekers while enhancing national security, as outlined in the order.
The policy is also expected to reduce unnecessary taxpayer expenses, with a goal for the cost of all regulations enacted in one year to be less than the savings from those repealed.
However, regulations concerning foreign affairs, homeland security, military, and immigration agencies are excluded from these new guidelines.
During Trump’s initial term, he managed to eliminate approximately eight and a half regulations for every new one introduced—well above the two-to-one ratio he pledged during his campaign.
Legislation passed by Congress and signed into law by Trump in 2019, aimed at deregulation, reportedly increased real incomes by over $40 billion annually, with prior deregulation actions leading to an estimation of more than 6 million new job opportunities and higher wages, according to the White House.
The president maintained that promoting deregulation could lessen the time and resources businesses need to spend on compliance processes.
Trump has consistently endorsed regulatory reform across various sectors, from water and energy to healthcare and technology, advocating for market forces to determine pricing and best practices.
Some critics argue that regulations are essential for holding businesses accountable, emphasizing concerns over environmental protection, labor rights, and other issues they believe are at risk due to deregulation.
“As the regulatory framework in the United States has grown in recent years, numerous negative effects have been evidenced in the U.S. economy,” the report concludes.
