Executive Order 13771 represented one of the earliest and most sweeping regulatory reform initiatives of the Trump administration, establishing a mechanism designed to fundamentally reshape the pace and scope of federal rulemaking. Signed on January 30, 2017, the order imposed a strict regulatory budget framework requiring federal agencies to identify and eliminate two existing regulations for every new regulation they enacted. Beyond this two-for-one mandate, the order directed agencies to maintain a "zero-net-growth" policy on regulatory costs, meaning any new compliance expenses imposed on businesses had to be offset by eliminating equivalent or greater costs from existing rules. This approach gave agencies explicit authority to halt or modify hundreds of regulations across multiple departments, including the Environmental Protection Agency, Department of Labor, and Department of Education.
The order's direct impact fell heaviest on businesses subject to federal oversight, which gained reduced compliance requirements across environmental standards, workplace safety rules, and consumer protection measures. Small and large enterprises alike experienced relief from certain reporting obligations and operational restrictions. However, the broader public—workers, consumers, and communities—experienced effects in the opposite direction, as regulatory protections were systematically reduced without corresponding public input or risk assessment. The elimination of specific rules governing air quality standards, water protection, and workplace hazard communication meant fewer government-mandated safeguards for employee health and environmental conditions.
This action inaugurated a regulatory posture that would persist throughout subsequent administrations. The emphasis on cost-benefit calculations and burden reduction foreshadowed later trade policies like the Temporary Import Surcharge announced in 2026, which similarly framed economic policy through the lens of reshaping competitive conditions. The deregulatory framework also contrasted sharply with consumer protection initiatives like the 2026 executive order on combating cybercrime and fraud, revealing inconsistent priorities—reducing business compliance burdens while simultaneously expanding consumer protection mandates.
The legal status of Executive Order 13771 remained contested, with various regulations challenged in court on grounds that agencies had exceeded statutory authority in eliminating rules without proper administrative procedure. While some eliminations survived judicial review, others faced reversals when courts determined that underlying statutes mandated regulatory action regardless of executive order directives.
Executive Order 13771: Reducing Regulation and Controlling Regulatory Costs
💰 Economy · First Term (2017–2021) · 🤖 AI-categorized
On January 30, 2017, President Trump signed Executive Order 13771, which required federal agencies to identify two existing regulations for elimination for every new regulation enacted. The order established a zero-net-growth policy for regulatory costs, directing agencies to offset any new regulatory costs with equal or greater cost reductions from existing rules. The confirmed direct impact included the elimination or modification of hundreds of federal regulations across agencies including EPA, Labor, and Education, reducing regulatory compliance requirements for businesses and changing how federal agencies could issue new rules.