Regulations, regulations, regulations. It’s a dirty word among Republicans in Congress, who are getting started on their plan to scale back federal oversight of U.S. businesses. Federal rules meant to protect the environment, consumers, and workers can cost businesses money, and Republicans believe those rules are strangling American economic growth.
Republicans have repeatedly accused the Obama administration of abusing its regulatory powers, such as the Labor Department’s creation of the fiduciary rule (which requires financial planners to put the interest of their clients before their own) and the overtime rule (which increases the number of workers eligible for overtime pay). As president, Trump can remove these rules, though doing so would likely take years. Congressional Republicans want to go beyond that, making it as hard as possible for the executive branch to create new regulations. “We’re going to take a fresh approach, we don’t want bureaucracy touching everything,” House Majority Leader Kevin McCarthy said Thursday at an event at the Hoover Institution. In his role, McCarthy sets the agenda for the House, and the anti-regulatory frenzy has already started.
Their biggest effort is through passage of the Executive in Need of Scrutiny Act of 2017 (known as the REINS Act), which was approved last week by the House. The bill gives Congress the power to approve or deny regulations enacted by federal agencies that are expected to have an economic cost of more than $100 million, which means Congress has the final word. To understand what the implications of this would be in practice, such a law would have likely killed a rule like the Clean Power Plan, which the Environmental Protection Agency finalized last year to limit carbon-dioxide pollution from America’s power plants. Extensive scientific reviews have concluded that carbon-dioxide emissions cause climate change. Under the REINS Act, such a rule would only have gone into effect if Congress voted in favor of it within 70 days of its creation. If Congress had chosen not to vote on it, it would not have gone into effect. (It’s important to note, however, that even without the REINS Act, implementation of the Clean Power Plan has been delayed pending the outcomes of federal litigation.)