‘Ten Thousand Commandments’ report on federal regulation exposes Washington’s big costs, little accountability

The Competitive Enterprise Institute today released its annual report on the federal regulatory state, Ten Thousand Commandments by Clyde Wayne Crews.

Federal regulatory burdens cost the average household more than $15,000 per year - more than food, clothing, education, or any other household expense except for housing. In total, regulation imposed a $2.1 trillion total cost, rivaling the $2.3 trillion income tax cost.

"Regulatory compliance costs and mandates borne by businesses result in higher prices, lost jobs, and lower output," said Crews. "Regulations undermine the economic success of American businesses and households and drag down the economy. Congress should intervene and fix this problem."

The report identifies the main problems with a regulatory system grown more expensive, extensive, and politicized - and less transparent and accountable - under the Biden administration.

One of the biggest problems is a 2023 Biden executive order that undermined the crucial watchdog mission of the White House Office of Management and Budget (OMB). Executive Order 14094 1) downplays the cost of regulation by changing the threshold that triggers more intense OMB review and 2) switches the focus of regulatory review from cost/benefit assessment to a pursuit of "net benefits" as envisioned by progressives. "The federal government's sole watchdog, OMB, has been transformed into a cheerleader for regulation," Crews explained.

Other problems include:

• COST - There were 97 "economically significant" rules (defined as $100 million cost or higher) completed over the past six months, far exceeding the previous 10 years.
• COST - Despite the fact the Biden executive order changed the cost-threshold of economically significant rules from $100 million per year to $200 million, so many bigger rules are coming out that the economically significant numbers are still going up.
• TALLY - The tally of final rules for 2023 is the second lowest count since 1976, but the number of pages in the Federal Register detailing those rules is the second-highest tally on record. Fewer official rules but broader in scope!
• UNCONSTITUTIONALITY INDEX - Federal regulatory agencies issued 3,018 final rules, compared with Congress passing 68 bills - 44 rules issued for every law passed in 2023.
• TRANSPARENCY - A Biden Executive Order in 2021 ended a requirement that agencies disclose "dark matter" (such as guidance documents) on their websites, so there's no accurate way of measuring it anymore.
• SMALL BUSINESS IMPACT - Final rules affecting small business appear to be mounting. Biden's three years have averaged 870 rules annually affecting small business, compared with 694 and 701 for Obama and Trump, respectively.

To fix these many problems, the report identifies reforms aimed at increasing transparency, rigorous review, and accountability to Congress, such as:

• Regulatory budgeting;
• Creating a regulatory reduction commission;
• Mandating congressional approval for costly or controversial agency rules; and
• Passing an "Abuse of Crisis Prevention Act".

> View the Ten Thousand Commandments report at cei.org/10kc

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