In a bold move to foster economic growth and reduce regulatory burdens, President Donald J. Trump has signed a new Executive Order aimed at significantly cutting down federal regulations. The White House announced the directive on social media, emphasising that for every new regulation introduced by an agency, at least 10 existing regulations must be repealed.
The new Executive Order seeks to make federal regulations more efficient and manageable. By requiring agencies to repeal 10 existing rules for every new one, the administration aims to curb the accumulation of outdated and unnecessary regulations. Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, expressed her support for this initiative, likening it to the sensible practice of discarding old items to make space for new ones. Gupta argued that this approach not only optimises regulatory processes but also minimises compliance costs for businesses.
“This is brilliant. Keeps regulations up the curve, while not adding to the cost of compliance by letting old regulations pile up. Akin to mom telling me I need to discard a shoe when I buy a new one. Cupboard space and cost spent on compliance should both be limited :)”, reads Radhika Gupta’s post on X.
Aiming for Economic Prosperity Through Deregulation
The Executive Order is designed to foster economic growth by reducing unnecessary red tape. According to the White House, one of the key objectives is to lower regulatory costs, allowing businesses to thrive and create jobs without being stifled by burdensome rules. This move is seen as a step toward improving economic conditions by supporting entrepreneurship, small businesses, and consumer choice.
Addressing Overregulation Under the Biden Administration
The Executive Order also seeks to reverse the regulatory trends of the Biden Administration, which has introduced what the Trump administration deems excessive regulation. The White House pointed out that under the Biden Administration, regulations have imposed a historic $1.7 trillion cost on the American public, which the Trump administration argues has stifled growth and contributed to rising inflation.
By halting what they call a “regulatory onslaught,” Trump’s administration aims to alleviate the financial burden on American families and businesses, particularly by addressing rising energy prices and reducing the overall cost of living.
This new Executive Order builds upon President Trump’s successful efforts during his first term. Under his leadership, federal agencies were tasked with eliminating two regulations for every new one introduced. This initiative went beyond expectations, achieving a remarkable reduction rate of five and a half regulations for every new rule implemented.
By continuing this aggressive deregulation strategy, the Trump administration seeks to further reduce the federal regulatory footprint, fostering a more business-friendly environment and improving the daily lives of American citizens.
With the signing of this Executive Order, President Trump is positioning his administration as a champion of deregulation. By reducing the federal regulatory burden, the government aims to streamline processes, lower costs, and foster a more prosperous and innovative economy. This bold move reflects Trump’s ongoing commitment to reducing governmental overreach and supporting the growth of American businesses and entrepreneurs.