In a move aimed at revitalizing the U.S. economy, President Donald Trump signed an executive order today titled Unleashing Prosperity Through Deregulation. The order mandates a sweeping overhaul of federal regulations, requiring agencies to eliminate 10 existing regulations for every new one introduced.
The measure is designed to reduce the financial burden on businesses and individuals, spur economic growth, and enhance America’s global competitiveness.
The executive order, which takes immediate effect, outlines a rigorous regulatory budgeting process to curb the expansion of federal rules and reduce compliance costs.
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Provisions include:
- Ten-for-One Rule: For every new regulation proposed, agencies must identify at least 10 existing regulations to repeal. This rule ensures that the incremental cost of new regulations is offset by the elimination of older, outdated rules.
- Regulatory Cap for Fiscal Year 2025: Agencies are directed to ensure that the total incremental cost of new regulations finalized in 2025 is significantly less than zero, unless otherwise required by law.
- Annual Regulatory Cost Submissions: Beginning in fiscal year 2026, agencies must submit annual reports to the Office of Management and Budget (OMB) detailing the costs and savings associated with new and repealed regulations.
- Exemptions: Regulations related to national security, military, foreign affairs, immigration, and agency organization are exempt from the order.
In the executive order, President Trump emphasized the detrimental impact of excessive federal regulations on economic growth and innovation. “The ever-expanding morass of complicated Federal regulation imposes massive costs on the lives of millions of Americans, creates a substantial restraint on our economic growth and ability to build and innovate, and hampers our global competitiveness,” the order states.
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The administration argues that the current regulatory framework is overly complex, often requiring businesses and individuals to navigate a labyrinth of rules, guidance documents, and interagency agreements that are not subject to the Administrative Procedure Act. By streamlining regulations, the administration aims to foster a more business-friendly environment and improve the quality of life for American citizens.
The executive order is expected to have far-reaching implications for industries across the board, from manufacturing and energy to healthcare and technology. Proponents of deregulation applaud the move, citing the potential for increased innovation, job creation, and economic growth.
However, critics warn that the order could lead to the rollback of critical protections for consumers, workers, and the environment.
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The OMB, under the direction of its Director, is tasked with overseeing the implementation of the executive order. This includes providing guidance to agencies on identifying regulations for elimination, standardizing cost estimates, and ensuring compliance with the Administrative Procedure Act.
The order also revokes OMB Circular No. A-4 of November 9, 2023, and reinstates the prior version issued in 2003, signaling a return to earlier regulatory analysis standards. Additionally, the Department of the Treasury and the OMB will reinstate a 2018 memorandum of agreement regarding the review of tax regulations.
The executive order echoes President Trump’s first-term efforts to reduce regulatory burdens, which he credits with driving economic growth and keeping inflation low. “The average inflation rate during the first Trump administration was 1.9 percent,” Press Secretary Karoline Leavitt noted. “When President Trump left office, it was 1.4 percent. This order builds on that success.”
As agencies begin the process of identifying regulations for repeal, the administration is expected to face pushback from advocacy groups, lawmakers, and potentially affected industries. Nevertheless, President Trump remains steadfast in his commitment to deregulation as a cornerstone of his economic agenda.
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