Deregulation Order (E.O. 14192)

Summary

Makes government agencies remove ten old rules for every new rule they create to lower costs for people and businesses.

What problem does this solve?

Too many complicated federal rules create large costs for Americans and slow down the country's ability to grow and compete. This order solves the problem by forcing agencies to cut ten old rules for every new one they add, reducing the overall cost and number of regulations.

What does this order do?

Establishes a 'ten-for-one' rule

Requires that whenever a federal agency creates a new regulation, it must find at least ten existing regulations to get rid of.

Sets a goal for negative regulatory costs

Directs agencies to make sure that the total cost of all new rules for fiscal year 2025 is much less than zero, meaning more cost is removed than added.

Expands the definition of a regulation

Defines 'regulation' very broadly to include not just formal rules but also memos, guidance documents, and policy statements, increasing the scope of what can be cut.

Gives more power to the Office of Management and Budget (OMB)

Grants the Director of the OMB the authority to approve new regulations, set cost limits for each agency, and provide guidance on how to follow this order.

Exempts certain types of regulations

Excludes rules related to the military, national security, foreign affairs, immigration, and internal agency management from this order.

Reinstates older government policies

Replaces the 2023 version of OMB Circular A-4 with the 2003 version and brings back a 2018 agreement on how tax regulations are reviewed.

Who does this affect?

Federal agencies
Businesses
American citizens

What is the real world impact?

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Reduces the cost of doing business

Aims to boost the economy by cutting the expenses and time that people and companies spend following federal rules. This could encourage more innovation and growth.

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Could remove important public protections

Critics might argue that by focusing only on the cost of rules, the order could lead to the removal of important regulations that protect public health, safety, and the environment, without considering their benefits.

When does this start?

This order takes effect immediately on January 31, 2025, and includes several deadlines for federal agencies.

Regulatory cost cap for 2025

For fiscal year 2025, agencies must ensure the total cost of new regulations is significantly less than zero.

Annual cost submissions

Starting with fiscal year 2026, each agency must report the costs and savings of their new and repealed regulations to the OMB.