It’s not just tariffs. American businesses and households are undermined by regulations that stifle competition and innovation, hamper growth and drive up prices. Federal regulations alone cost the average household over $16,000 annually, according to the Competitive Enterprise Institute’s Ten Thousand Commandments 2025 report.
The question is how to fix the problem. We need our leaders in all three branches of government to achieve deregulation. But so far, only the executive branch has been working to deregulate, apart from both houses of Congress voting to overturn a few Biden-era rules.
One new executive order from President Trump introduces expiration dates, or sunsets, to certain regulations, which will prod our elected representatives to consider in the future whether specific regulations are needed and prevent unchecked accumulation of regulatory sludge. Without sunset dates, once a rule is on the books, it’s permanent unless Congress or an agency acts to remove it. Congress isn’t inclined to do so because it requires effort and consensus. Regulatory agencies rarely eliminate rules, because the process can take months or even years. That is how the Code of Federal Regulations has ballooned to more than 188,000 pages.
Another new Trump executive order directs agency heads to review their regulations for legality and constitutionality, in light of recent Supreme Court rulings curbing power wielded by the unelected administrative state. Agency self-review could deliver significant regulatory relief, especially when bolstered by another early Trump order imposing an ambitious “one-in, ten-out” rulemaking process. Together such orders can slow the influx of new regulations while pruning the existing stock.
But regulatory reformers must heed a lesson from Trump’s first term: executive orders aren’t enough. Permanent reform demands congressional legislation.
Executive actions can be fleeting. Joe Biden reversed Trump’s regulatory streamlining agenda in 2021, for example, and Trump returned the favor this January. While Trump’s sunset order could help in the short term, it may not outlast his presidency. Lasting change requires legislation like Sen. Joni Ernst’s (R-Iowa) SCRUB Act, which includes a sunset provision.
The SCRUB Act and other bills also have a tool more effective than agency self-policing: an outside commission that would comb the books for outdated or harmful rules and put them in a repeal package for Congress to permanently repeal. This commission approach worked for closing unneeded military bases in the 1990s after the Cold War ended. Taxpayers have saved billions of dollars. If it worked for defense spending, it can work for regulations.
Other Trump executive orders on regulation cover everything from cost-benefit analysis to anti-competitive regulations. The same principle applies. If reforms are to endure, Congress must do its part, and swiftly. If Trump’s relentless trade war persists, a recession could erode the GOP’s current majority, complicating reform efforts.
The Department of Government Efficiency (DOGE) is not a sufficient force for deregulation, as it lacks Congress’s legislative authority and has in any event focused more on agency payrolls than regulatory actions. We need Congress to step up. Otherwise, as the Archbridge Institute’s Justin Callais points out, if Trump can cut spending without Congress, “what is to stop future Presidents from adding to government spending without congressional approval”?
Courts also need to be more engaged in regulation. If an executive branch agency issues an unconstitutional rule or one that Congress never authorized with a statute, the judiciary’s proper role is to strike it down when presented with pertinent litigation. That is the court’s role in maintaining the Constitution’s separation of powers. Recent court decisions regarding the major questions and non-delegation doctrines make it easier for courts to do their job. Next comes the test.
Whatever Trump’s flaws, his administration has a unique opportunity to tackle overregulation. But the president cannot succeed without the other branches of government. The time to act is now. Federal regulations cost over $2 trillion per year. More than 3,000 new regulations hit the books last year, and the most recent Unified Agenda listed more than 3,500 upcoming rules. The 188,000-page Code of Federal Regulations is still growing. These are trends in the wrong direction.
The president’s push to curb overregulation is welcome, but he can’t do it alone.
Clyde Wayne Crews, Jr. is the Fred L. Smith fellow in regulatory studies at the Competitive Enterprise Institute, where Ryan Young is senior economist.
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