Could President Trump’s “One In, Two Out” Rule Impact Your Business?
While many of President Donald Trump’s executive orders have made headlines, one of the less controversial policy changes may have the most significant impact on New York and New Jersey businesses. Under the executive order, entitled “Reducing Regulation and Controlling Regulatory Costs,” executive agencies must eliminate two existing regulations for each new rule issued.
Regulatory Cap
The executive order aims to cut regulatory burdens and costs. As stated by President Trump, “it is essential to manage the costs associated with the governmental imposition of private expenditures required to comply with Federal regulations.”
Toward that end, the so-called “two for one” mandate specifically states: “Unless prohibited by law, whenever an executive department or agency publicly proposes for notice and comment or otherwise promulgates a new regulation, it shall identify at least two existing regulations to be repealed.” The executive order further provides that any new incremental costs associated with new regulations must, to the extent permitted by law, be offset by the elimination of existing costs associated with at least two prior regulations.
The executive order also imposes a “cap” on new regulations for Fiscal Year 2017, which has already begun. It states that the “heads of all agencies are directed that the total incremental cost of all new regulations, including repealed regulations, to be finalized this year shall be no greater than zero.” The only exceptions are rules that are otherwise required by law and rules that are authorized in writing by the Director of the Office of Management and Budget.
Potential Impact on Businesses
The executive order represents one of the most significant regulatory policy changes in several decades. In numerous studies, businesses cite increasing regulatory burdens as a top concern. So, if the end result is a leaner and more streamlined regulatory environment, the executive order is certainly good news. However, the devil is in the details.
To start, the mandate does not impact independent regulatory agencies over which the President does not have direct control. That leaves key agencies like the Securities and Exchange Commission (SEC), Federal Communications Commission (FCC), and Federal Trade Commission (FTC) outside the purview of the order.
Since the executive order is drafted broadly, it is unclear how it will be applied in practice. For agencies like the Department of Labor, the Internal Revenue Service and the U.S. Patent and Trademark Office that are looking to make policy changes under the Trump Administration or seeking to overhaul complex regulatory regimes, the order could actually lead to headaches for everyone involved. Any regulatory changes must still comply with Administrative Procedure Act’s requirement for public notice and comment. In addition, the wholesale elimination of regulations creates a serious litigation risk.
Do you have any questions regarding the “One In, Two Out” rule and its potential impact on your business? Would you like to discuss the matter further? If so, please contact me, Michael Jimenez, at 201-806-3364.
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
