Every new president, dating back to Jimmy Carter, has promised to cut regulations. Even President Obama’s executive orders on improving the regulatory process and cutting red tape sounded impressive when they were issued. That was before six of the seven all-time-high years for pages of federal regulations occurred during his tenure.
Four decades of nonstop growth in federal regulation show that tackling Washington’s bureaucracy is tougher than it sounds. The U.S. Code of Federal Regulations is more than 175,000 pages long, having grown steadily since the 1970s. Federal regulations aren’t just words on a page; these pages contain more than one million commandments from Washington in the form of restrictive words such as “must,” “cannot,” or “shall.”
But based on President Trump’s first 100 days, there is reason for optimism that this trend is about to change.
President Trump has already issued two executive orders on regulatory reform. They sent a message to executive agencies: Regulatory restrictions on businesses will not be able to keep growing on autopilot.
Trump’s hiring freeze will also help lower the rate of new regulations. As research from the Mercatus Center has shown, there is a high correlation between the number of employees at an agency and the number of regulations issued by that agency. President Trump has also taken advantage of the Congressional Review Act, which gives Congress the power to overturn recently finalized regulations through a simple majority vote. So far, he has signed at least 13 such repeals. Previously, this tool had been successfully used only once in its 20-year history.
Though President Trump’s lofty promise to cut regulation by “by 75 percent, maybe more” is likely unattainable, simply halting the growth in federal regulations would be a massive achievement. And the president has many methods available to him to accomplish this.
Moving into the next phase of his first term, there are three main legislative solutions that President Trump can use to follow through on his promises to cut regulation. These solutions address the accumulation of old regulations, the creation of costly new regulations, and the lack of public participation in the regulatory process.
First, the Trump Administration needs to get rid of outdated, ineffective regulations.
If President Trump decides to capitalize on his reputation as a deal maker, an innovative idea from the center-left Progressive Policy Institute would address regulatory accumulation. Both the Regulatory Improvement Act and the SCRUB Act create a “Regulatory Improvement Commission” to come up with a package of older regulations to eliminate that would then go through Congress for an up-or-down vote. Focusing on older regulations would take some of the politics out of regulatory reform, and voting on a large package in this way would limit the ability of established interests to interfere with the process.