Reps. Chip Roy and Michael McCaul introduce legislation to slash job-killing federal regulations

WASHINGTON, D.C. – Today, TexasCongressmen Chip Roy (TX-21) and Michael McCaul (TX-10) reintroduced the One In, Two Out Act, which would cut down unnecessary government regulations and help America's small businesses.

The legislation would require any federal agency issuing a new regulation to repeal two existing regulations reducing the net cost by at least the same amount before the new one takes effect, thereby reinstating one of the most successful policies of the Trump administration.

President Trump implemented the "One In, Two Out" Executive Order in 2017, and by 2019, the EO saved small businesses $733 million in regulation costs. However, the Biden Administration's decision to rescind the One In, Two Out policy on his first day in office will harm already struggling businesses in the wake of the COVID-19 pandemic.

"The best thing the government can do for small businesses is get out of their way and let them thrive," said Roy. "President Trump and his Administration took tremendous strides to slash burdensome regulations that were harmful to our economy, saving hundreds of millions of dollars in regulation costs and creating countless jobs. I am proud to cosponsor my friend, Congressman McCaul's One In, Two Out Act to reinstate President Trump's effective red tape cutting rule at a time when the Biden Administration is ignoring the challenges facing small businesses from the pandemic and tyrannical lockdown measures."

"In a time when small businesses are still rebuilding from the COVID-19 pandemic, we should not reinstate onerous regulations that will place heavy penalties on American business owners," said McCaul. "Regulations can be complex for small businesses to navigate and come at a high cost. That is why I am proud to reintroduce the One In, Two Out Act, which will force regulators to make tough choices when considering new regulatory burdens on businesses."

Full text of the legislation can be found at the link here.

Background:

• Modeled after the successful British policy, the One In, Two Out Act requires government departments to assess the net cost to business of complying with any new regulation that is proposed (an "in"). This policy proved to be a major success under President Trump.
  • For major regulations with an annual economic cost of more than $100 million, a deregulatory measure (an "out") must be found and published to the Federal Register that reduces the net cost by at least the same amount before the new regulation may go into effect.
  • 2017 research by the National Federation of Independent Businesses found that roughly half of all small business owners find that government regulations are a "very serious" or "somewhat serious problem." Small businesses face complex and burdensome federal regulations costing them over $40 billion annually.

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