The Biden administration’s tenure was marked by a significant increase in regulatory costs, setting a new record at $1.8 trillion. This figure, provided by the American Action Forum, represents a substantial rise compared to previous administrations. The numbers were derived from estimates provided by federal agencies themselves.
A major portion of these regulatory costs stemmed from the Environmental Protection Agency (EPA), which accounted for $1.3 trillion. The Biden administration utilized the EPA to advance an ambitious climate change agenda, resulting in unprecedented expenses. The pace of rulemaking notably accelerated in 2024, as highlighted by Dan Goldbeck, Director of Regulatory Policy.
The most expensive regulation was the “Model Year 2027 and Later” tailpipe emissions rule, costing approximately $870 billion. This rule aimed to phase out gas-powered vehicles, demonstrating the administration’s focus on environmental reforms. Goldbeck noted that even excluding this rule, the EPA’s costs surpassed those of the next five agencies combined.
The Department of Health and Human Services was the second most costly, with 15 rules imposing billions in expenses. The Biden administration’s regulatory approach significantly increased paperwork, adding 356 million hours.
A notable portion of this burden came from the vaccine-or-test mandate for large employers, demanding 79 million hours of paperwork.
With President Trump re-entering the White House, a shift towards deregulation is anticipated. Trump’s agenda focuses on comprehensive government reform, challenging Democrats to keep pace. A primary goal is to reduce inflation, in part through deregulation efforts.
Trump has committed to expanding domestic energy production, vowing to “drill baby drill.” This strategy includes rolling back Biden’s environmental regulations, such as the electric vehicle mandate. Lee Zeldin, Trump’s EPA director, is expected to address costly environmental rules.
Republican Senator John Barrasso criticized the EPA’s regulatory actions during the Biden years. He argued that these regulations imposed excessive costs and restrictions on American families and businesses. Barrasso accused the EPA of succumbing to climate extremism and neglecting practical solutions.
The previous administration’s regulatory approach starkly contrasts with Trump’s intentions of reducing red tape. By eliminating burdensome regulations, Trump aims to stimulate economic growth. This approach aligns with his broader vision for government reform.
The regulatory landscape under Biden was characterized by a focus on climate and health directives. However, this resulted in substantial financial and administrative burdens. Trump’s return signals a potential reversal of these policies.
The shift in regulatory philosophy is expected to impact various sectors of the economy. Trump’s deregulation efforts are designed to foster business development and reduce operational costs. This approach is anticipated to resonate with those advocating for reduced government intervention.
Critics of Biden’s regulatory policies argue that they stifled economic progress. The increased costs and paperwork hours were seen as barriers to growth. Trump’s policies aim to dismantle these obstacles.
The transition from a regulation-heavy to a deregulation-focused administration marks a significant policy shift. Supporters of Trump’s approach believe it will lead to a more dynamic economy. This change is eagerly anticipated by those who favor limited government oversight.
The impact of regulatory changes on businesses and consumers will be closely monitored. Trump’s policies are expected to encourage innovation and entrepreneurship. The administration’s focus remains on boosting the economy through strategic deregulation.
As the new administration implements its agenda, the effects on inflation and economic recovery will be key areas of focus. Trump’s commitment to reducing regulatory burdens is a central tenet of his policy platform. The outcomes of these efforts will be assessed in the coming years.
