Simply cutting red tape and putting Obama-era regulations on hold have already saved $378 million since President Trump took office, and that savings is expected to jump into the billions next year when the administration’s anti-regulation campaign hits full stride, said a new report.
Just 16 deregulation moves account for savings, with many smaller ones likely adding to that pot, and the report from American Action Forum said that next year’s actions will bring “potentially billions in savings.”
In his report, Dan Bosch, director of regulatory policy at the American Action Forum, looked at agency moves driven by the president’s executive order demanding savings from deregulation.
Since it is still early in the process, he found that most of the saving came simply by cutting red tape. “Research shows that most of the reduced costs come from paperwork streamlining and delays in implementation. In contrast, just a fraction of one percent of the realized savings come from substantive regulatory changes,” he said.
The annualized savings from these rules comes to $378 million. Nearly half of those savings are derived from paperwork reductions ($179 million, or 47 percent). Another significant portion comes from delays ($136 million or 36 percent). Of the remaining 17 percent, just .29 percent (or $1.1 million) comes from regulatory changes. The chart below breaks down the cost savings for each category.
Looking ahead to bigger savings, Bosch noted that the administration should complete the deregulation of the Obama era Clean Power Plan and Waters of the United States rules and the Department of Labor’s overtime rule. “There are potentially billions in savings from these rules alone. While the savings from additional delays may be drying up soon, expect more substantive regulatory actions – and savings – in the year ahead,” he added.
Paul Bedard, the Washington Examiner's "Washington Secrets" columnist, can be contacted at firstname.lastname@example.org