New Rule: Every Regulation Must Kill Ten Others – Deregulation Frenzy Begins
Published Date: 2/6/2025
Presidential Document
Summary
The President’s new order says every time a government agency makes a new rule, it has to get rid of at least 10 old ones. This will help businesses and people save money and make it easier to understand the rules. Starting now, agencies must keep the total cost of new rules below zero, meaning they’re cutting more costs than adding, boosting America’s economy and innovation.
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Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Ten-for-One Rule for New Regulations
Starting January 31, 2025, whenever an agency proposes or issues a new regulation it must identify at least 10 existing regulations to repeal. The order says this ten-for-one requirement is meant to cut compliance costs for businesses and people by removing old rules as new ones are added.
Fiscal Year 2025 Net Cost Cap
For fiscal year 2025, agencies must ensure the total incremental cost of all new regulations being finalized this year is "significantly less than zero," meaning agencies should cut more private-sector costs than they add. The Director of the Office of Management and Budget will determine and oversee this requirement for FY2025.
Broader Definition of "Regulation"
The order defines ‘‘regulation’’ to include guidance documents, policy statements, memoranda, and interagency agreements even if they were not enacted under the Administrative Procedure Act. That means non-APA guidance and similar documents can count as regulations for the ten-for-one and cost-offset requirements.
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