
As President Donald Trump commenced his second term, his initial wave of executive orders marked a definitive return to regulatory reforms that emphasize transparency, accountability, and the minimization of government overreach. These measures align closely with the CPAC Foundation’s Center for Regulatory Freedom's (CRF) strategic roadmap for addressing the burdens imposed by the administrative state.
The CRF has long highlighted the economic and social toll of unchecked regulatory expansion, particularly under administrations favoring centralized control. Between 2017 and 2021, regulatory costs saw a reduction due to policies that demanded transparency and adherence to strict cost-benefit analyses. However, this trajectory was reversed in subsequent years, with escalating regulatory burdens threatening small businesses, innovation, and individual freedoms. Now, as the Trump administration reasserts its commitment to regulatory reform, the alignment with the CRF’s recommendations provides a path to restore economic stability, promote accountability, and protect liberties.
The overarching problem of regulatory costs lies at the heart of this conversation. According to a 2022 assessment cited in CRF's recommendations, federal regulations imposed a staggering $3.95 trillion in compliance costs annually—a number that doesn’t account for the lost opportunity costs, which some estimates place at nearly $75 trillion. This reality underscores the urgent need to recalibrate regulatory policies, ensuring they serve the public without stifling economic opportunity.
The Foundation of Reform: Key Executive Orders
President Trump’s reinstatement of the "1-in/2-out" regulatory policy—a cornerstone of his first administration—is a clear signal of his intent to address regulatory accumulation. This policy mandates that for every new regulation proposed, two existing regulations must be repealed. The CRF’s advocacy for this rule is rooted in its simplicity and effectiveness in maintaining a balanced regulatory framework while preventing unnecessary bureaucratic growth.
Equally significant is the executive order halting all ongoing regulatory proceedings pending a comprehensive review. This aligns with the CRF's recommendation to pause and scrutinize rulemakings to ensure their necessity, efficiency, and economic viability. By mandating that the Office of Management and Budget (OMB) and the Office of Information and Regulatory Affairs (OIRA) review all pending regulations, the administration ensures that no rule advances without rigorous cost-benefit analysis and alignment with its policy objectives.
Addressing Regulatory Transparency
A recurring theme in both the executive orders and the CRF’s recommendations is the emphasis on transparency. President Trump’s directive requiring federal agencies to disclose the costs, benefits, and impacts of proposed regulations reflects the CRF's call for mandatory annual regulatory cost reporting. Such measures not only hold agencies accountable but also empower the public with the knowledge necessary to evaluate the fairness and efficiency of government action.
Looking Ahead
The following initial actions, complemented by broader reforms proposed by the CRF, set the stage for a transformative approach to governance. By prioritizing economic freedom, reducing unnecessary burdens, and fostering transparency, the Trump administration’s regulatory agenda promises to restore balance and reinvigorate the principles of limited government:
Among these, several executive orders were particularly focused on regulatory transparency, controlling regulatory costs, and reforming the administrative state. These measures signify a decisive move towards reducing bureaucratic overreach and enhancing accountability within federal agencies.
1. Executive Order on Regulatory Freeze Pending Review
In a move reminiscent of his initial term, President Trump issued an executive order instituting an immediate freeze on all pending federal regulations. This directive mandates that no new regulations be sent to the Office of Information and Regulatory Affairs until they undergo thorough review by the new administration. The primary objective is to halt the progression of regulations that may impose undue burdens on businesses and individuals, ensuring that any regulatory action aligns with the administration's policy goals.
2. Executive Order on Reducing Regulation and Controlling Regulatory Costs
Building upon his previous efforts to streamline federal regulations, President Trump reinstated the "two-out, one-in" policy through an executive order titled "Reducing Regulation and Controlling Regulatory Costs." This order requires that for every new regulation introduced, federal agencies must eliminate at least two existing regulations. The intent is to curtail the cumulative cost of regulations and alleviate the compliance burden on businesses, thereby fostering economic growth and innovation.
3. Executive Order on Ending Radical and Wasteful Government DEI Programs and Preferencing
In an effort to promote merit-based practices within federal agencies, President Trump signed the executive order "Ending Radical and Wasteful Government DEI Programs and Preferencing." This order calls for the termination of all Diversity, Equity, and Inclusion (DEI) programs across the federal government, asserting that such initiatives are divisive and detract from the core mission of federal agencies. By eliminating these programs, the administration aims to reduce unnecessary expenditures and refocus agency efforts on their primary objectives.
4. Executive Order on Reforming the Federal Hiring Process and Restoring Merit to Government Service
Complementing the previous order, President Trump issued the "Reforming the Federal Hiring Process and Restoring Merit to Government Service" executive order. This directive prohibits federal hiring practices based on race, sex, or religion, describing diversity hiring practices as "illegal racial discrimination under the guise of 'equity.'" Instead, it mandates that hiring decisions be based solely on merit and skill, aiming to enhance the efficiency and effectiveness of the federal workforce.
5. Executive Order on Putting America First in International Environmental Agreements
Reaffirming his commitment to prioritize national interests, President Trump signed the executive order "Putting America First in International Environmental Agreements." This order directs the immediate withdrawal of the United States from the Paris Agreement and other international climate commitments, citing the need to protect American sovereignty and economic interests. By exiting these agreements, the administration seeks to eliminate regulations perceived as detrimental to domestic industries and job creation.
What it All Means
President Trump's initial executive actions underscore a robust agenda aimed at dismantling what he perceives as an overextended regulatory framework. By freezing pending regulations and reinstating the "two-out, one-in" policy, the administration demonstrates a clear intent to reduce the regulatory burden on businesses, potentially stimulating economic activity and fostering a more conducive environment for innovation.
The termination of DEI programs and the shift towards merit-based hiring reflect a philosophical stance that emphasizes individual qualifications over group identities. Proponents argue that such measures will lead to a more competent and efficient federal workforce, while critics contend that they may undermine efforts to promote diversity and inclusion within government agencies.
The withdrawal from international environmental agreements signals a prioritization of national economic interests over global climate commitments. This move is likely to reignite debates over the balance between environmental responsibility and economic growth, with supporters lauding the decision for protecting domestic industries, and opponents warning of potential long-term environmental consequences.
In conclusion, President Trump's day-one executive orders reflect a concerted effort to recalibrate the role of federal regulations in American society. By promoting transparency, reducing costs, and emphasizing meritocracy, the administration aims to foster a more efficient and accountable government. As these policies unfold, their impacts on the administrative state and the broader socio-economic landscape will become more apparent, shaping the discourse on the appropriate scope and scale of federal regulatory authority.