/>i- On January 31, 2025, President Trump signed an executive order titled “Unleashing Prosperity Through Deregulation.” This order mandates that federal agencies identify at least 10 existing rules, regulations, or guidance documents to repeal whenever they seek to introduce a new rule or regulation. Additionally, the order stipulates that the Director of the Office of Management and Budget (OMB) will ensure standardized measurement and estimation of regulatory costs. For fiscal year 2025, the total incremental cost of all new regulations must be significantly less than zero, accounting for offsets from the elimination of costs associated with the ten repealed regulations.
- The executive order criticizes the costs of regulation, stating that overregulation discourages entrepreneurship, consumer choices, individual liberty, and harms small businesses. It references Executive Order 13771 which President Trump signed during his first term in which he required agencies to eliminate two regulations for each new regulation issued—a policy rescinded by former President Biden on his first day in office. The order notes that the Trump Administration had previously eliminated five and a half regulations for every new regulation issued.
- The order also directs the Director of the OMB to provide agency heads with guidance on implementing the order, including standardizing methods for determining costs. Furthermore, it revokes OMB Circular No. A-4 (“Regulatory Analysis”) and reinstates the Memorandum of Agreement (MOA) between the Department of Treasury and the OMB from April 11, 2018, regarding the review of tax regulations under Executive Order 12866.
- OMB Circular No. A-4 provided guidance to federal agencies on developing regulatory analysis, including assessing costs and benefits of regulatory actions. The revocation of this circular aims to streamline the regulatory process and reduce perceived burdens on businesses.
- The MOA between the Department of Treasury and the OMB established a framework for reviewing tax regulations, ensuring economic analysis while maintaining timely tax guidance. Executive Order 12866, signed in 1993, set principles for regulatory planning and review, emphasizing the need for cost-benefit analysis and coordination among federal agencies.
- This new executive order represents a significant shift in regulatory policy. Keller and Heckman will continue to monitor any new executive orders issued by the new administration that affect the federal government, particularly those related to the administrative state and regulated industries.
President Trump Issues New “10-to-1 Deregulation” Order
Thursday, February 6, 2025
Current Public Notices
Published: 5 February, 2025
Published: 27 January, 2025
Published: 13 January, 2025
