Challenges in Regulatory reform: Trump's initial strategy foreshadows tough regulatory conflicts
Pt. 1: The Staggering Impact of Federal Regulations
Drowning in Red Tape: The Hidden $2 Trillion Burden
Every year, trillions of dollars are gobbled up by federal regulation, creating what experts call the "costberg" - a labyrinth of rules, guidance, and paperwork that submerges our economy without a Congressional vote. This astonishing financial burden, estimated at over $2 trillion annually, adds to the $7 trillion Washington is slated to spend this year.
The Unseen Iceberg: Regulatory Dark Matter
The true pain point isn't just notice-and-comment rules, but the mysterious, undocumented edicts known as regulatory dark matter. These agency memos, bulletins, circulars, and the like, bypass traditional public-notice rulemaking, often lacking the force of law. For most, disregarding these edicts is a bold move that few dare to make.
This cloud of regulatory darkness is brewed even murkier when regulation is laundered through subsidies, grants, contracting, and procurement. All in all, it's clear we're being governed not just by our elected representatives, but by the executive branch's "pen and phone."
Crisis as Catalyst: From Response to Permanent Governance
The advent of COVID-19 disrupted years of regulatory reform, blending unprecedented spending with expanded regulatory powers. What once was emergency management has transformed into permanent governance, as federal powers are stretched to impose price controls and interfere in supply chains.
This flare-up of flash policymaking isn't limited to any one party - it's a deep-rooted threat to democratic values.
The Biden Administration's Power Play
Biden's "whole-of-government" initiatives have further accelerated this shift towards increased federal power. His Modernizing Regulatory Review executive order dismantled Trump's regulatory streamlining project, giving agencies free rein to pursue "net benefits" as defined by progressive ideologues.Cost-benefit analysis took a backseat, making way for the government's regulatory wealth redistribution agenda.
The Return of the Boss: Four Years Later
While Trump's first term brought some discipline to traditional rulemaking, his successor diverted the course with reforms that favored progressive principles. However, as the pendulum swings again, the current administration has issued over 140 executive orders, with many aimed at restoring regulatory streamlining. Unsurprisingly, the Biden administration's rules and philosophical structure are under attack as well.
Beyond Partisanship: Spending-Driven Regulation
Sadly, regulatory expansion is more bipartisan than we care to admit. The left isn't particularly concerned, trusting that the GOP will eventually yield when push comes to shove. This year's deficit will top $2 trillion - no war or national emergency in sight.
A Shimmer of Hope: The Long Game for Free Enterprise
While the administrative state grows ever more bloated, its true nature as a barrier rather than a builder is becoming increasingly apparent. Progressive energy is growing, too, with ideas like regulatory budgeting, congressional approval of major rules, and the exposure of regulatory dark matter gaining ground. Most importantly, the prospect of agency termination is on the table.
The Deconstruction of the Administrative State
EXECUTIVE ORDER 14,219 boldly calls for "Commencing the Deconstruction" of the administrative state. To ensure this outcome, action plans should encompass:
- Department and Agency Termination
- Ending Subsidies and Public-Private Partnerships
- Scaling Down Contracting and Procurement
- Requiring Congressional Approval of Regulations
- Bracing for Post-Chevron Progressive Mobilization
- Enforcing Existing Regulatory Reform Laws
- Rewriting OMB's Regulatory Cost-Analysis Guidelines
- Reinforcing Trump Executive Orders with New Legislation
- Cracking Down on Regulatory Dark Matter
- Implementing Regulatory Cost Budgeting
- Establishing a Sunsetting and Regulatory Reduction Commission
- Creating an Annual Regulatory Report Card
- Considering a Congressional Office of Regulatory Analysis (CORA)
- Enacting the Abuse-of-Crisis Prevention Act
The Abuse-of-Crisis Prevention Act: Preventing the Predatory Expansion of Government
To shrink the federal enterprise during emergencies, the Abuse-of-Crisis Prevention Act introduces six key components:
- Caps on Emergency Appropriations
- Timely Review of Spending
- Temporary Freeze on Non-Essential Regulatory Actions
- Cost-Benefit Analyses for New Regulations
- Prohibition of Bailouts and Subsidies
- Sunset Clauses for All Emergency Measures, Regular Post-Crisis Reviews, and Private Sector Resilience Enhancement
Interwoven within these protections, the Abuse-of-Crisis Prevention Act can effectively limit federal spending and regulatory expansion during emergencies, maintaining a balance between crisis response and democratic values.
- Regardless of political affiliations, policymakers must address the costberg, the hidden $2 trillion burden resulting from federal regulations, as it poses a threat to the nation's economy.
- The Biden Administration has implemented numerous executive orders, attempting to deconstruct the fiscal and regulatory approach implemented during the Donald Trump administration, which focused on regulatory streamlining.
- In a bid to prevent the predatory expansion of government, particularly during emergencies, a policy-and-legislation proposal named the Abuse-of-Crisis Prevention Act has been suggested, aiming to introduce caps on emergency appropriations, cost-benefit analyses for new regulations, and sunset clauses for all emergency measures.
- The looming executive order 14,219 proposes a comprehensive deconstruction of the administrative state, which includes department and agency termination, ending subsidies and public-private partnerships, scaling down contracting and procurement, requiring Congressional approval of regulations, and rewriting OMB's regulatory cost-analysis guidelines, among other actions.
