Regulatory Developments

Trump Issues Executive Order for Regulatory Reduction

On Monday, January 30, 2017, President Trump signed an Executive Order (EO) Reducing Regulation and Controlling Regulatory Costs. The EO is aimed at cutting regulations and fees to assist small and large businesses. In each agency, for every one regulation that is issued, the agency must identify two regulations to be repealed.

This EO comes after the White House issued a memo to the heads of executive branch departments and agencies freezing all pending regulatory actions. The EPA has delayed 30 regulatory actions.

“This will be the largest ever cut by far in terms of regulation,” President Trump told press on Monday. “If there’s a new regulation they have to knock out two, but it goes far beyond that. We’re cutting regulations massively for small business and for large business, but they’re different…and that’s what this is about today.”

According to the EO, any costs associated with new regulations must be “offset by the elimination of existing costs associated with at least two prior regulations.”

With the EO, agencies can expect the Director of the Office of Management and Budget to provide them a total amount of costs that will be allowed for each agency to issue new regulations and to repeal regulations for the next year as well as guidance on:

  • Processes for standardizing the measurement and estimation of regulatory costs;
  • Standards for determining what qualifies as new and offsetting regulations;
  • Standards for determining the costs of existing regulations that are considered for elimination;
  • Processes for accounting for costs in different fiscal years;
  • Methods to oversee the issuance of rules with costs offset by savings at different times or different agencies; and
  • Emergencies and other circumstances that might justify individual waivers of the requirements of this section.

Find the EO reducing regulation here.

8 thoughts on “Trump Issues Executive Order for Regulatory Reduction”

  1. Putting American people first? Not. I hope businesses with a conscience will rebel against this tyrant. And for those who put profits ahead of people, I hope we are able to boycott them to a point where they go out of business

      1. Making America first in laughingstocks of major powers in the world is what Trump is making us. It is absurd to believe that numerically reducing the number of regulations would improve safety and efficiency.

        Agencies coud game back by combining 2 single rules into 1 new one and claim reduced regulatory cost since the initial cost of compliance of a long-established rule should be much more than for a “new” combined rule.

  2. I have spent 30 years in safety, attempting to reduce Fatalities, Life/Career altering injuries, and measurable quality of life loss to families of those injured.
    I wish it were as easy as stating: “2 for 1 reduction in cost”. I suspect the future may prove a 2 times 1 multiplier for increased loss trends.

  3. I don’t like Trump but I like the intent behind this action. I am an EHS Manager and you don’t need new legislation to stay safe (in most cases). There are quite a few horrible regulations out there that have little or nothing to do with safety. My only real disagreement with this legislation is that there are new products out there every day that may require new safety compliance and regulation. Organizations (no matter how big or small) can still be socked in the face by OSHA, DEQ, EPA, etc. The government tends to issue regulations for whatever the flavor of the week happens to be. Now new regulations will really have to have some thought put behind them before they are dished out like an unwanted pimple.

  4. Calling President Trump unflattering names or delving into hyperbolic hysteria over his election by the people of the United States is unproductive here. What is productive is someone trying to get a handle on the runaway, unaccountable bureaucratic labyrinth that is the Washington, D.C. regulatory Leviathan. President Trump’s actions are a step in the right direction; and, only time will tell what impact on cost savings as well as EHS effectiveness. It is helpful to remember that the overarching goal of all bureaucratic agencies is to continue and grow.

    What also may be helpful is to devolve concentrated power away from Washington toward the individual States. Government closer to the people has a reputation of being more nimble, responsive, and efficient.

  5. I guess other states like California will develop their own rules.
    California’s rules are above the EPA or comparable.

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