President Donald Trump recently signed an executive order titled 'Unleashing Prosperity Through Deregulation,' with the goal of reducing unnecessary regulatory burdens on American businesses and citizens. The order aims to eliminate outdated or unnecessary regulations to stimulate economic growth.
One of the key provisions of the executive order is the requirement that for every new regulation proposed, at least 10 existing regulations must be repealed. This measure is intended to ensure that the net cost of regulations does not increase, thereby promoting responsible regulatory budgeting.
The order emphasizes the importance of lowering compliance costs, fostering economic growth, and enhancing global competitiveness by systematically removing obsolete regulations. Agencies are mandated to report regulatory costs and offsets annually to the Office of Management and Budget, which will oversee the process.
Specifically, for the ongoing fiscal year 2025, agencies must ensure that the total incremental cost of all new regulations, including repealed regulations, finalized this year results in a net savings or minimal increase. The Director of the Office of Management and Budget will determine whether the total incremental cost meets this requirement.
This executive order reflects the administration's commitment to streamlining regulations and promoting a business-friendly environment. By prioritizing deregulation and cost savings, the government aims to support economic growth and competitiveness in the years to come.
