President Trump has begun the regulatory reform in the U.S. government after signing the executive order on Jan. 30. The reform will be the biggest one since Reagan administration in the 1980’s.
Through his executive order the President urges the department and agencies to reduce cost imposed on private parties to comply with the federal regulations according to National Law Review. President Trump aimed to adopt the two-in-one rule. The rule required revocation of two existing rules for each new proposed or issued regulation, which will limit incremental cost allowances that government agencies impose to private sectors through the new regulations.
President Trump said the Executive Order addresses federal executive goverment and agencies, but not the independent agencies such as Environmental Protection Agency (EPA) or Federal Energy Regulatory Commission (FERC). However, independent agencies may comply with the requirement of the order voluntarily. The main target of the Executive Order is to minimize costs imposed on private parties to comply with federal regulations.
Since the signing of the executive order, dozens of policies in the Obama era have been targeted. With this order, President Trump wants to limit and contain the cost of federal mandate as reported by Washington Post.
Senior fellow in regulatory policy at the conservative Heritage Foundation James Gattuso said the attempt will be the first one since Reagan took office in the White House. He also said, “It’s clear as can be that they intend to reduce the level of regulation.”
Since 1982, cost for federal regulations has grown substantially every year, according to White House Office of Management and Budget. Republicans have targeted this overregulation for long time. The Republicans believe the high-cost of government regulation cripple the economy as it stem the economic growth and job creation.
The rollback of many regulations have been welcomed by the business owners and they look forward to see more of the regulations reduction in the next few years. Watch the discussion in the Fox Business “Wall Street Week” hosted by Gary Kaminsky and Elizabeth MacDonald regarding the market reaction on the President Trump regulatory reform below:
