REINing In Regulations will be Good for Innovation and Investments
The Trump administration has been moving headlong into reducing the regulatory burden on industries that are trying to invest and build in America. After President Trump released two Executive Orders (EO) on eliminating regulations, federal agencies are taking note and moving forward. Congress is also considering legislation to increase its role in reviewing regulations.
Federal regulations are far-reaching and place significant burdens on American businesses and taxpayers. On April 24, 2025, the Competitive Enterprise Institute (CEI) released its annual Ten Thousand Commandments report, which found that the cost of regulatory compliance and federal intervention reached an all-time high of $2.155 trillion annually.
While reducing individual agency regulations as President Trump has requested in his EOs will be helpful, addressing them across all agencies is critical to rein in bureaucratic burdens. Council for Citizens Against Government Waste (CCAGW) has consistently supported the Regulations from the Executive in Need of Scrutiny (REINS) Act, which would require congressional approval for major rules. The REINS Act defines a major rule as having annual economic impact of over $100 million; creating a major increase in costs or prices for consumers or individual industries; or having significant adverse impacts on competition, employment, investments, innovation, productivity, or the ability for U.S. companies to compete against foreign-based companies. The House of Representatives is planning to include language similar to the REINS Act in the upcoming budget reconciliation package.
When federal agencies determine how to administer the laws enacted by Congress, they often misinterpret their meaning or intent, costing businesses and taxpayers time and money. For example, the National Telecommunications and Information Administration’s (NTIA) guidance for the Broadband Equity, Access, and Deployment (BEAD) program included many provisions that were contrary to the language in the enabling legislation. The REINS Act will give Congress the ability to override this type of expanded and incorrect interpretation of the law.
By requiring agencies to seek final approval of major rules by both the House and Senate, Congress will regain control over how its laws are interpreted by federal agencies, reduce wasteful spending, and increase accountability. The REINS Act could be one of most cost-saving provisions of the reconciliation package and will lead to more certainty for businesses and consumers.
