In 2008, the Office of Management and Budget (OMB) and the Small Business Administration estimated the regulatory compliance costs to be approximately $1.752 trillion.
These figures were cited in 2015 testimony before the Senate Armed Services Committee by the Honorable Jacque S. Gansler, Ph.D., currently professor emeritus at the University of Maryland’s School of Public Policy. He cited these figures in making the case for reducing regulations, policies, and procedures to reduce barriers to entry to the federal market and to increase the Defense Department’s access to commercial innovation, which is needed desperately to ensure technological superiority on the battlefield.
That is why the Jan. 30, 2017 executive order Reducing Regulation and Controlling Regulatory Costs, is a step in the right direction in reducing regulatory burdens. The EO provides, in part, that for fiscal year 2017, the heads of agencies are directed that the total incremental cost of all new regulations to be finalized this year, including repealed regulations, shall be no greater than zero. The EO further provides that any new incremental costs associated with the new regulations shall be offset by the elimination of existing costs of at least two prior regulations.