Shutdown Stalled Deregulatory Action At HHS, In Congress

“Jeremy Nighohossian, a health policy expert and economist at regulatory reform organization the Competitive Enterprise Institute (CEI), told Inside Health Policy in a statement that President Donald Trump has furloughed fewer workers during this shutdown than previous administrations, but rulemaking has still slowed down, including deregulatory action. That trend is observable in the Federal Register.

‘Between September and October, the number of notices issued by HHS dropped by 87 percent. Thus far for November, the pace is running 97 percent below the September rate. There are proposed rules, which are the first stage in changing a regulation, and includes deregulation. Since there are fewer of these to begin with, they are more subject to variation,’ Nighohossian said.

He added, ‘Prior to the shutdown, HHS was issuing about five proposed rules per month. There have been none in October or November. Over the long-term, however, we should assume that the slowdown will not affect the long-term deregulatory agenda of the administration.'” 

“Clyde Wayne Crews, a fellow in regulatory studies at CEI, wrote in Forbes last Wednesday (Nov. 5) that agencies have made little progress in using the good cause exemption to eliminate rules, motivating the October memo from OIRA acting administrator Jeffrey Clark.

‘But the sweeping reversals OMB appears to expect have yet to materialize. While traditional notice-and-comment rulemaking has slowed — putting 2025 on track for the lowest number of rules in history — most major rollbacks have occurred through the 16 Congressional Review Act resolutions disapproving Biden-era rules rather than via Trump’s executive order mechanisms,’ Crews wrote.

He added, ‘In the meantime, to make any ‘streamlining’ stick, Congress will need to codify successful Trump-era rescissions, rollbacks, delays, and guidance-discipline measures — ensuring they cannot be undone by future administrations.'”

“CEI President Kent Lassman says the greatest opportunity for lasting regulatory reforms is in Congress, even as most activity right now is happening at the state level.

Lassman sees movement in Congress toward what he views as a realization about the economic costs of regulatory burdens, which he says should prompt enactment of longstanding legislative proposals to rein in federal regulators.

‘So, the most activity, I think, is happening at the state level, but the opportunity for the most reform, or the biggest reform, or the reforms that will last the longest, I really believe, is that in the nation’s Capitol right now,’ Lassman said at a Sept. 22 webinar moderated by U.S. Chamber chief policy officer Neil Bradley.

CEI is strongly backing two pending legislative proposals. One is the so-called Regulations from the Executive in Need of Scrutiny (REINS) Act, which says certain major rules “may not take effect” unless Congress enacts a joint resolution approving them.”

Read more at InsideHealthPolicy