The Cost of Federal Regulations

Floor Speech

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Ms. FOXX. Mr. Speaker, we talk a lot in this Chamber about the burdensome regulations that Federal agencies frequently place on the American public. Last week the Competitive Enterprise Institute released a report that puts a price tag on the rules implemented by the Federal bureaucracy, saying that Federal regulation and intervention cost American consumers and businesses nearly $2 trillion in lost economic productivity and higher prices in 2014. That is simply unacceptable.

Many of these rules hinder innovation and job creation and are costly to businesses and consumers. As a former small-business owner, I know firsthand how the government can make it more difficult for a business to be successful. I recognize the true costs of overregulation, such as lost productivity, increased expenses, and new financial and legal liabilities, which many policymakers often forget about.

Just last month, the House approved a disapproval resolution to stop the Obama administration from implementing its flawed fiduciary rule, which will significantly impact the ability of Americans to receive advice on how to save for retirement and make it more difficult for businesses--in particular, small businesses--to establish retirement plans. The rule, which contains more than 1,000 pages of new regulations, makes it cost prohibitive to offer advice or services to low- and middle-income Americans by increasing compliance costs and the risk of litigation.

The Department of Education is constantly putting obstacles in the path of innovation, and these unnecessary regulations are stifling pioneering higher education institutions at a time when forward- thinking solutions are desperately needed. More redtape and hoops to jump through are not going to promote diverse choices for students. In fact, they often add administrative costs on schools--costs that are typically passed on to students in the form of higher fees and tuition. That is why I have introduced legislation to reduce Federal intrusion and limit the costly regulatory burden on colleges and universities.

As my colleagues and constituents know, the issue of unfunded mandates has been a particular interest of mine for a long time. It is frequently overlooked in the debates about reforming our regulatory system and carrying out Federal policies. It is all too easy for Washington bureaucrats to write off concerns expressed by a handful of local governments or a small subset of private businesses. But these decisions have real costs and real effects on the individuals, families, and communities we each represent.

My legislation, the Unfunded Mandates Information and Transparency Act, does not seek to prevent the Federal Government from regulating; rather, it seeks to ensure that its regulations are deliberative and economically defensible. Asking regulators to consider thoroughly and understand the cost of a rule in addition to its benefits should not be controversial.

Republicans are often accused of opposing all regulations, but that is just not true. We are in favor of commonsense rules, and we believe it is possible to alleviate the regulatory burden on small businesses and other job creators while balancing public safety and consumer interests.

Regulation by bureaucratic fiat is not what the Founding Fathers had in mind when they created our government. I applaud Speaker Ryan for creating the Task Force on Reducing Regulatory Burdens and look forward to seeing its suggestions for a modern and transparent regulatory system that makes it easier to invest, produce, and build in America.

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