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ExplainerOMB MandateExplainer· 5 min read· in Business

White House Mandates 10-to-1 Rule: Agencies Must Repeal 10 Regulations for Every New One Issued

The Trump administration's Executive Order 14192 requires federal agencies to repeal ten existing regulations for every new one issued. This explainer breaks down the mechanics of the policy, its economic rationale, and the mounting legal challenges over administrative law.

By Alexei Morozov

The Administration 35%Administrative Law Critics 35%Industry & Business Groups 15%Regulatory Analysts 15%
The Administration
Argues that aggressive deregulation is necessary to spur economic growth and reverse inflation-driving policies.
Administrative Law Critics
Warns that the quota is arbitrary, violates the Administrative Procedure Act, and burdens agencies.
Industry & Business Groups
Welcomes the reduction in compliance costs and regulatory friction.
Regulatory Analysts
Focuses on the mechanical difficulty of implementation and the novel legal theories being tested.

Perspectives this story doesn't cover

  • Environmental Advocacy Groups
  • Labor Unions
  • State-Level Regulators

Why this matters

By fundamentally altering how federal agencies operate, the 10-to-1 rule affects everything from workplace safety standards and environmental protections to corporate compliance costs and the speed of government action.

The federal government is undergoing one of the most aggressive administrative overhauls in modern history. Under Executive Order 14192, dubbed the "Unleashing Prosperity Through Deregulation" initiative, the White House has mandated a strict 10-to-1 ratio for federal rulemaking. For every single new regulation, rule, or guidance document an executive agency wishes to implement, it must identify and repeal ten existing ones. This directive fundamentally rewrites the math of the administrative state, forcing departments to aggressively prune their policy books before they can address new issues.[4]

The mechanics of the order extend beyond a simple quota. The directive also requires that the total incremental cost of all new regulations—factoring in the savings from the repealed rules—must be "significantly less than zero" for the fiscal year. The Office of Management and Budget (OMB) has been tasked with enforcing this regulatory budget, essentially giving the White House a powerful chokehold over agency action. If an agency cannot prove that its new rule will result in a net economic savings after the ten repeals, the rule cannot move forward.

This initiative is a massive expansion of the deregulatory framework established during the first Trump administration. In 2017, the White House instituted a 2-for-1 rule, which the administration claims ultimately resulted in the elimination of five and a half regulations for every new one issued. By quintupling the statutory requirement to a 10-to-1 ratio, the current administration is testing the absolute limits of executive authority over the federal bureaucracy.[1]

Under the new mandate, agencies must identify ten existing rules or guidance documents to repeal for every new one issued.

The economic rationale driving the policy is rooted in the belief that federal overreach is stifling American business. The White House argues that the previous administration imposed a historic $1.7 trillion in regulatory costs on the public, driving up inflation and crushing small enterprises. By forcing agencies to slash their rulebooks, the administration aims to reduce compliance burdens, lower energy prices, and accelerate corporate innovation.[4]

Industry groups have largely welcomed the shift. Financial institutions, credit unions, and manufacturing sectors have long argued that overlapping federal guidelines create a paralyzing compliance environment. For these sectors, the 10-to-1 mandate represents a structural guarantee that the total volume of federal red tape will shrink, rather than grow, over the coming years.

However, regulatory analysts point out that the sheer scale of the 10-to-1 mandate creates unprecedented logistical hurdles. To meet the quota, the definition of what counts as a "regulation" has been vastly expanded. Agencies are not just looking at formal rules; they are now targeting "guidance documents"—the informal memos, FAQs, and policy manuals that agencies use to clarify complex laws for the public and industry.[2]

This expansion is crucial because there is a finite number of formal regulations on the books that can be easily eliminated without causing severe disruptions. By allowing guidance documents to count toward the ten-rule quota, the OMB is giving agencies a wider pool of targets. Yet, eliminating guidance documents can also create confusion for businesses that rely on those very memos to understand how to comply with federal law.

This expansion is crucial because there is a finite number of formal regulations on the books that can be easily eliminated without causing severe disruptions.

The most significant friction point lies in administrative law. The Administrative Procedure Act (APA), the foundational statute governing federal rulemaking, defines "rule making" as the process for formulating, amending, or repealing a rule. In 2015, the Supreme Court affirmed that agencies must use the exact same lengthy procedures—including public notice and comment periods—to repeal a rule as they used to create it in the first place.[3]

The current policy quintuples the deregulatory quota established during the first Trump administration.

This legal reality means that repealing ten rules to pass one new one is not a simple stroke of a pen. It requires drafting ten separate repeal proposals, opening them to public comment, reviewing the feedback, and publishing final rescissions. Administrative law experts warn that this places an immense, perhaps insurmountable, burden on agency staff, effectively freezing their ability to issue even necessary or beneficial new regulations.[1][3]

To circumvent this bottleneck, the OMB has introduced novel procedural fast-tracks. A recent White House memo established "deregulation" as a distinct category of action with entirely different rules. While standard regulations typically face a 90-day review period by the Office of Information and Regulatory Affairs (OIRA), the OMB has capped the review of deregulatory actions at just 28 days.[3]

Furthermore, the OMB has directed agencies to bypass the notice-and-comment process entirely for rules they deem "facially unlawful." By invoking the APA's "good cause" exemption, the administration hopes to immediately strike down regulations that conflict with its current interpretation of the law. This aggressive legal maneuvering is virtually guaranteed to trigger a wave of litigation from environmental, labor, and consumer protection groups.[3][4]

Advocacy groups argue that the quota system is inherently arbitrary and dangerous. Organizations like the Project On Government Oversight (POGO) warn that the mandate forces a false choice, pressuring agencies to repeal beneficial public protections simply to meet a mathematical target. They argue that rulemaking should be based on thoughtful consideration of social and economic impacts, not a rigid numerical quota.[1]

Agencies are increasingly targeting informal guidance documents to meet the steep ten-rule quota.

There are also deep concerns about how this policy affects public participation. Because the OMB is pushing agencies to fast-track repeals and minimize consultation with states, tribes, and local governments, critics argue the process heavily favors well-resourced corporate interests. Disproportionate industry representation could allow private sectors to effectively dictate which rules are scrapped and which survive.[1]

The practical reality of the 10-to-1 rule is that it fundamentally changes the job description of federal workers. Instead of researching and drafting new safety standards or market protections, agency staff are now primarily tasked with auditing decades-old rulebooks to find expendable policies. The federal government has been transformed into a massive deregulation engine.[2][4]

Ultimately, the success of the 10-to-1 mandate will be decided in the federal courts. As agencies begin finalizing their first wave of mass repeals, judges will have to determine whether the OMB's fast-track procedures and broad use of the "good cause" exemption violate the Administrative Procedure Act. Until then, the federal rulemaking apparatus remains locked in a high-stakes numbers game.[3][4]

10
Regulations repealed per new rule
< $0
Mandated net regulatory cost
$1.7 trillion
Estimated cost of prior administration's rules
28 days
Fast-tracked OMB review for repeals

Key points

  1. Executive Order 14192 requires federal agencies to repeal ten existing regulations for every new one they issue.
  2. The total incremental cost of all new regulations for the fiscal year must be less than zero.
  3. The Office of Management and Budget (OMB) has capped the review period for deregulatory actions at 28 days.
  4. Critics argue the mandate violates the Administrative Procedure Act by attempting to bypass standard public comment periods.
  5. The policy vastly expands on the 2-for-1 deregulatory rule implemented during the first Trump administration.

Sources

Source coverage

4 outlets

4 viewpoints surfaced

The Administration 35%Administrative Law Critics 35%Industry & Business Groups 15%Regulatory Analysts 15%
  1. [1]Project On Government OversightAdministrative Law Critics

    Requiring 10-to-1 Deregulation: Arbitrary Quotas Undermine Rulemaking

    Read on Project On Government Oversight
  2. [2]Sabin Center for Climate Change LawAdministrative Law Critics

    Trump Administration Institutes “10-to-1” Deregulation Rule

    Read on Sabin Center for Climate Change Law
  3. [3]Eno Center for TransportationRegulatory Analysts

    OMB Memo Establishes 'Deregulation' as a New Category of Action

    Read on Eno Center for Transportation
  4. [4]Factlen Editorial TeamRegulatory Analysts

    Synthesis by Factlen editorial team

    Read on Factlen Editorial Team

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