First Year of Trump Presidency Achieves Dramatic Cuts in Federal Regulations

President Trump made it clear in both of his terms in office that the federal government must be more efficient, and that reducing regulations would be a primary tool to achieve this objective.  In his first term, the intent was to eliminate two regulations for every new regulation.  Executive Order 14192 calls for the repeal of 10 regulations for every new regulation, five times more than during his previous term.  According to the Office of Management and Budget’s (OMB) year-end regulatory accounting for fiscal year (FY) 2025, federal agencies finalized 646 deregulatory actions compared to only five regulatory ones, a ratio of 129:1.

OMB estimates that these efforts will save taxpayers $211.8 billion in compliance and opportunity costs and boost market activity.  Notable deregulatory steps include the revision of the Financial Crimes Enforcement Network rule on Beneficial Ownership Information Reporting Requirement, which reduced compliance costs by $128.6 million; the cancellation of the Food and Drug Administration’s rule on applying medical device rules on laboratory-developed tests, which helped small laboratories continue providing quality services; and the Federal Housing Administration’s rollback of excessive mortgage requirements, which will help increase homeownership.

The ongoing deregulation initiative is not only about having to fill out less paperwork but also reducing inefficiency and making goods and services more affordable.  The Federal Communications Commission’s “Delete, Delete, Delete” agenda focuses on eliminating wasteful broadband-related rules and expenditures, including using E-Rate funds to equip school buses with Wi-Fi hotspots (saving an estimated $1.2 billion on installation alone), and cancelling outdated broadband labeling requirements.

President Trump’s deregulatory agenda is giving executive agencies more authority to make decisions that favor taxpayers instead of the government.  After decades of tightening the bureaucratic grip with excessive regulations, this change of direction is welcome, as it promotes innovation, facilitates public-private cooperation, and lowers costs for Americans.