Industry groups fear new Biden regulatory changes could hobble growth

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Business and industry groups, long pushing for fewer federal regulations, say a key Biden administration change to federal agency calculations of regulatory costs could have major repercussions.

At the heart of the matter is an executive order issued in April by President Joe Biden that raised the threshold for what is considered a “significant regulatory action” from a $100 million annual economic cost to $200 million.The change is noteworthy because regulations that fall into that “significant” bucket are subject to cost-benefit analysis requirements, which can present hurdles if they don’t fall within the guardrails of having the benefits outweigh the drawbacks and costs.

The administration has nearly 300 of such regulations in the pipeline and has averaged 97 “economically significant” regulations per year, compared to 69 per year under former President Barack Obama and 49 under former President George W. Bush. “What you're effectively doing is allowing agencies to shift the impacts of the regulatory burden to other countries,” Netram said. “So you allow benefit garnered in other countries to outweigh the domestic burden … that seems inconsistent with the role of the federal government.”

“What Biden has done in my view is change the role of OMB from a watchdog of regulation to a promoter of regulation, and that is the essence of all this,” Crews said. “Instead of reviewing regulations with a skeptical eye, the progressives who are in charge now have decided that they’re going to use this regulatory oversight machinery not to put the brakes on regulation, but to advance ‘net benefits’ as progressives see them.

NAM surveys its members quarterly and recently found that 63% said they are spending more than 2,000 hours per year just working to comply with federal regulations. When asked what they would do if that regulatory burden were decreased, 65% said they would purchase more capital equipment, and nearly half of manufacturers said they would raise wages for workers.

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