Executive Order #13771

By: Shiley Moeinzadeh

In one of his first significant acts as President, Donald Trump signed Executive Order 13771, titled “Reducing Regulation and Controlling Regulatory Costs,” on January 30, 2017. This directive signaled a dramatic shift in federal regulation, embodying the Trump administration’s broader agenda to reduce government intervention in the economy and promote business growth.

At the heart of Executive Order 13771 was a simple and symbolic mandate. With every new federal regulation issued, at least two existing regulations had to be eliminated. This so-called “two-out, one-in” policy was unprecedented in American regulatory policy. The order aimed not only to reduce the number of federal rules but also to cap the costs of new regulations. Agencies were required to ensure that the total cost of new regulations, including the cost of repealing others, did not exceed a set dollar amount. This “regulatory budget” approach represented a business-like framework for rulemaking, in which cost efficiency became a top priority.

The Office of Management and Budget (OMB), particularly its Office of Information and Regulatory Affairs (OIRA), was tasked with implementing the order. The OIRA provided guidance to federal agencies, set annual regulatory cost caps, and monitored compliance with the new policy. Independent regulatory agencies, such as the Securities and Exchange Commission (SEC) and the Federal Communications Commission (FCC), were not bound by the order, limiting its reach to executive agencies. Some regulations, particularly those related to national security or emergencies, were exempted from the requirements.

Executive Order 13771 was a cornerstone of the Trump administration’s deregulatory agenda. The president and his allies argued that excessive regulation stifled business innovation, burdened small enterprises, and slowed economic growth. By aggressively cutting red tape, the administration hoped to create new jobs. “We’re cutting regulations massively for small business—and for large business,” Trump said during the order’s signing ceremony. “This will be the biggest such act that our country has ever seen.”

While the order was praised by many business groups and conservatives, it drew sharp criticism from environmental organizations, consumer advocates, and public interest groups. Critics argued that focusing solely on the cost of regulations ignored their benefits, such as protecting public health, safety, and the environment. In February 2017, a coalition of advocacy groups, including Public Citizen, filed a lawsuit challenging the legality of the order. However, the case was dismissed by a federal judge.

Executive Order 13771 remained in effect throughout Trump’s term, though its actual impact on the regulatory landscape remains a matter of debate. Some studies suggest it contributed to a modest slowdown in rulemaking, while others note that many repealed rules were relatively minor or had not yet taken effect. On January 20, 2021, newly inaugurated President Joe Biden revoked 13771 through Executive Order 13992, which aimed to restore “the integrity of our regulatory system.” Biden’s order ended the “two-out, one-in” framework.

Dooling, Bridget C. E., Mark Febrizio, and Daniel Pérez. “Accounting for Regulatory Reform under Executive Order 13771.” Brookings, 7 Nov. 2019, https://www.brookings.edu/articles/accounting-for-regulatory-reform-under-executive-order-13771/. 

Office of Management and Budget. Guidance Implementing Executive Order 13771, Titled “Reducing Regulation and Controlling Regulatory Costs.” Memorandum M-17-21, 5 Apr. 2017. U.S. Department of Defense, https://open.defense.gov/Portals/23/Documents/Regulatory/M-17-21%20Guidance%20on%20EO%2013771.pdf?ver=2017-10-18-134711-927.

U.S. Environmental Protection Agency. “Executive Order 13771 - Reducing Regulation and Controlling Regulatory Costs.” EPA, 30 Jan. 2017, https://19january2021snapshot.epa.gov/laws-regulations/executive-order-13771-reducing-regulation-and-controlling-regulatory-costs_.html.

“Office of Federal Financial Management.” Wikipedia, Wikimedia Foundation, https://en.wikipedia.org/wiki/Office_of_Federal_Financial_Management. Accessed 10 April 2025.