By
Derek Hamilton
July 09, 2025
The Trump administration and congressional Republicans have been attempting to remake government policy since taking office, including policy overhauls pertaining to tariffs, immigration, and now, tax and spending via the One Big Beautiful Bill. However, one important change isn’t receiving much attention: deregulation. After passing a law, Congress typically delegates rulemaking authority to the executive branch. Various agencies then use this authority to enact rules and regulations surrounding the law; however, the president ultimately decides how much regulation will be implemented while in office.
Regulation is a necessary component of the economy, with the government overseeing areas such as workplace safety and environmental protection. However, excessive regulation can be an unseen drag on businesses and the economy. Several organizations have attempted to measure the annual cost of regulation to US companies, and estimates are as high as $3 trillion or more, with the burden disproportionately borne by small and medium-sized businesses.
The current Trump administration is keenly focused on deregulation. As you can see from the chart below, President Biden issued more economically significant rules than any other president in recent history. Under Trump’s direction, the Departments of Energy and the Interior have been working to ease permitting restrictions, while the agencies overseeing the financial sector have been deregulating certain restrictions for banks. It is interesting to note that many regulations were issued in the last year of Trump’s first term, and the total under his presidency was the highest on record at the time. However, recent actions by the Supreme Court should make it easier to deregulate. We are cautiously optimistic that the operating environment will improve for businesses in the coming years.
Cumulative economically significant rules issued in the first term
Sources: Macquarie, Office of the Federal Register, The George Washington University Regulatory Studies Center
Note: Starting April 2023, the data incorporated the new definition in Executive Order 14094, which changed the definition of “significant rules” to be less stringent.
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