Several regulations implemented by the Obama administration pertaining to businesses will remain untouched by an executive order signed by President Donald Trump on Monday (Jan. 30), reports said.
Trump’s action introduces rules that requires agencies to cut two regulations for every new one introduced. It also places a cap on the cost of new regulations introduced, reports noted. For the rest of fiscal year 2017, the order requires that the cost of new regulations that are introduced must be offset by cutting existing regulations.
Reports noted, however, that independent government agencies are not affected by this executive action, and that includes those responsible for many of the rules under the 2010 Dodd-Frank law, like the Securities and Exchange Commission and the Commodity Futures Trading Commission.
“There will be regulation, there will be control, but it will be normalized control,” the president said.
Press Secretary Sean Spicer said the executive order is a “first step” to reforming business regulation. He added that the administration will be working with Congress in its efforts to reform or repeal Dodd-Frank.
The move isn’t without critics, however. Harvard Law School Professor Jody Freeman told Reuters that the executive order is “entirely unnecessary” because there are preexisting measures by former U.S. presidents that have introduced cost-cutting efforts to new regulation.
“Even [if] it is fairly toothless in the end, it will be a weapon that OMB [the Office of Management and Budget] can use to harass agencies and slow regulation,” Freeman said.
In another statement, an unnamed White House official said the action “vests tremendous power and responsibility in the OMB director to ensure the president’s direction in how we manage this across the government.”