While the press reported unrelentingly on President Donald Trump’s travel-ban executive order, Trump signed what became his seventh executive order in ten days. For business owners burdened by overwhelming government regulations, his latest executive order is a sign of relief: for every new regulation within the executive branch, Trump seeks to identify and repeal two existing regulations.
“It is important that . . . the cost of planned regulations be prudently managed and controlled through a budgeting process,” the order states.
Since the fiscal year has already begun, Trump has started with a more moderate introductory period. For the rest of the year, the heads of agencies will be required to make the total incremental cost of regulations “no greater than zero.”
In fiscal year 2018 and thereafter, the order kicks in more dramatically. Trump has instructed the director of the White House’s Office and Management and Budget, presumably South Carolina representative Mick Mulvaney, to collect annual regulatory cost submissions. The OMB director will then be able to identify and cap per agency the total cost of new regulations, with hopes of decreasing regulations in subsequent years. “No regulations exceeding the agency’s total incremental cost allowance will be permitted in that fiscal year,” Trump’s executive order states, “unless required by law or approved in writing by the Director.”
Last week, Trump told business leaders he thinks “we can cut regulations by 75 percent.” This may have been an exaggeration, but it is clear that Trump’s latest move on regulatory policy is a step in the right direction.