In January 2025, President Donald J. Trump signed an executive order titled “Unleashing Prosperity Through Deregulation,” mandating that for every new federal regulation introduced, ten existing ones must be repealed. This directive aims to reduce the regulatory burden on businesses and stimulate economic growth. (whitehouse.gov)
The order also stipulates that the total incremental cost of all new regulations for fiscal year 2025 should be significantly less than zero. This approach builds upon the administration’s previous efforts to streamline federal oversight and promote a more business-friendly environment. (whitehouse.gov)
In the financial sector, Wall Street anticipates a resurgence in mergers and acquisitions (M&A) activity. The administration’s deregulatory agenda, coupled with potential Federal Trade Commission staff reductions, is expected to lower regulatory scrutiny, making deal-making more attractive. However, the exact timeline for these changes remains uncertain, as the process of repealing existing regulations can be complex and time-consuming. (apnews.com)
The technology industry is also poised to benefit from reduced antitrust scrutiny and lighter regulation. This environment may encourage mergers and acquisitions, fostering innovation and growth. Nonetheless, the rapid pace of technological advancement presents challenges in ensuring that regulatory frameworks keep pace with industry developments. (ft.com)
In the energy sector, the administration’s policies favor oil and gas industries through deregulation and expanded drilling opportunities. While this approach aims to boost domestic energy production, it may lead to increased competition and potential oversupply in the market. Additionally, the renewable energy sector could face setbacks due to shifting policy priorities. (ft.com)
Despite the administration’s commitment to reducing regulatory burdens, the process of identifying and repealing existing regulations is intricate. Agencies must navigate legal frameworks and ensure that the removal of regulations does not inadvertently create compliance gaps or legal uncertainties. This complexity may result in delays and require additional resources to manage effectively.
Furthermore, while the initiative aims to reduce the size of the federal government, the task of reviewing and eliminating a significant number of regulations may necessitate increased staffing and oversight. This could lead to the expansion of certain governmental departments to handle the workload, potentially offsetting some of the intended reductions in bureaucracy.
In summary, the Trump administration’s 10-to-1 deregulation initiative represents a significant shift in federal regulatory policy, with the goal of fostering a more business-friendly environment. While the approach is designed to stimulate economic growth and reduce bureaucratic constraints, the practical implementation involves navigating complex legal and administrative challenges. Over time, with appropriate oversight and resource allocation, the system is expected to adapt to these changes, although it may require a period of adjustment and the establishment of new processes to ensure effective governance.
—
Tom Blake writes on markets, trade policy, and the government’s role in private enterprise. He studied economics at George Mason University and spent six years as a policy advisor for a business coalition before turning to financial journalism. His work examines the real-world impact of regulations, subsidies, and federal economic planning.