Fact Sheet: President Donald J. Trump Launches Massive 10-to-1 Deregulation Initiative

January 31, 2025

Action Summary

  • Deregulation Ratio: Mandates eliminating 10 pre-existing regulations for each new rule, regulation, or guidance issued.
  • Regulatory Cost Oversight: The Office of Management and Budget director is tasked with standardized measurement of regulatory costs; for FY 2025, the net incremental cost must be significantly less than zero.
  • Policy Shift Focus: Aims to halt what is described as the “regulatory onslaught” of the Biden Administration, which is accused of imposing $1.7 trillion in costs and stifling entrepreneurship, small business, innovation, and consumer choice.
  • Economic Impact: Seeks to reduce burdensome federal regulations that are blamed for job losses, increased cost of living, and higher energy prices.
  • Building on Past Success: Leverages previous achievements from the first Trump Administration, which exceeded its 2-for-1 regulatory reduction goal with an average elimination of 5.5 regulations per new one issued.

Risks & Considerations

  • The Executive Order’s requirement to eliminate 10 regulations for each new one could lead to significant changes in regulatory environments that affect higher education institutions. This may result in the removal of regulations that currently benefit universities, such as those related to research funding or educational standards.
  • The focus on deregulation may reduce oversight and accountability in areas critical to university operations, such as environmental standards, labor laws, and financial aid regulations. This could increase operational risks and require Vanderbilt to implement additional internal controls.
  • The potential reduction in regulatory costs could lead to decreased federal funding for programs that support higher education, research, and development. This may necessitate adjustments in Vanderbilt’s financial planning and resource allocation.
  • Vanderbilt University may need to closely monitor changes in regulations that impact its partnerships with federal agencies, particularly in research and innovation sectors, to ensure compliance and continued collaboration.

Impacted Programs

  • Vanderbilt’s Research Programs could be affected by changes in regulations related to federal research funding and compliance requirements. The university may need to adapt its research strategies to align with new regulatory landscapes.
  • The Office of Financial Aid might face challenges if deregulation impacts federal financial aid programs, potentially affecting student access to funding and necessitating adjustments in financial aid policies.
  • Environmental and Sustainability Initiatives at Vanderbilt could be impacted by changes in environmental regulations, requiring the university to reassess its sustainability goals and practices.
  • The Office of Government and Community Relations may need to increase its advocacy efforts to ensure that the interests of higher education are considered in the deregulation process.

Financial Impact

  • The reduction in regulatory costs could lead to decreased federal funding for higher education and research, impacting Vanderbilt’s budget and financial planning.
  • Vanderbilt may need to explore alternative funding sources to compensate for potential reductions in federal support, such as private partnerships or increased tuition revenue.
  • Changes in regulations could affect the cost structure of university operations, potentially leading to increased expenses in areas such as compliance, environmental management, and labor relations.
  • There may be opportunities for Vanderbilt to benefit from reduced regulatory burdens, such as increased flexibility in program development and innovation, but these must be balanced against potential risks and uncertainties.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

  • Vanderbilt’s Office of Federal Relations should closely monitor the implementation of the 10-to-1 deregulation initiative to identify any changes in federal regulations that could impact university operations, research funding, or compliance requirements. This proactive approach will help the university adapt to regulatory changes and maintain compliance.
  • Vanderbilt’s Research Administration should evaluate the potential impact of deregulation on research grants and funding opportunities. By understanding how these changes might affect federal research funding, the university can adjust its grant application strategies to maximize funding opportunities.
  • Vanderbilt’s Sustainability and Environmental Management Office should assess the potential effects of deregulation on environmental policies and sustainability initiatives. This will be crucial in ensuring that the university’s sustainability goals align with any new federal guidelines or changes in environmental regulations.
  • Vanderbilt’s Innovation and Entrepreneurship Center should explore opportunities to support entrepreneurship and innovation in light of reduced regulatory burdens. By fostering an environment that encourages innovation, the university can enhance its role as a leader in entrepreneurial education and support.

Opportunities

  • The deregulation initiative presents an opportunity for Vanderbilt’s Business School to conduct research on the economic impacts of deregulation. By analyzing the effects on entrepreneurship, small businesses, and consumer choice, the school can contribute valuable insights to the national conversation on regulatory policy.
  • Vanderbilt can capitalize on the reduced regulatory burden by expanding partnerships with industries that may benefit from deregulation. This could include collaborative research projects, internships, and other initiatives that enhance the university’s connections with the business community.
  • The focus on reducing regulatory costs offers an opportunity for Vanderbilt’s Law School to engage in policy analysis and advocacy. By providing legal expertise and recommendations, the law school can influence how deregulation is implemented and ensure that it aligns with broader societal goals.

Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with the new deregulation policies.)

Average Relevance Score: 4

Timeline for Implementation

  • Immediate upon new rule issuance: Agencies must identify at least 10 existing regulations for repeal at the time any new regulation, rule, or guidance is promulgated.
  • Fiscal Year 2025: For all new regulations in FY2025, the total incremental cost (including repealed regulations) must be significantly less than zero.

Relevance Score: 5

Impacted Government Organizations

  • Office of Management and Budget (OMB): The OMB is directly tasked with standardizing the measurement and estimation of regulatory costs, making it central to the implementation of this deregulation initiative.
  • Executive Branch Regulatory Agencies: Every federal agency that issues new rules, regulations, or guidance is required to identify and repeal at least ten existing regulations for each new one issued, indicating a broad directive that affects agencies across the entire executive branch.

Relevance Score: 5 (The deregulation directive applies across the entire federal government, impacting a wide range of agencies.)

Responsible Officials

  • Director of the Office of Management and Budget – Responsible for ensuring standardized measurement and estimation of regulatory costs, thereby enabling the implementation of the deregulation directive.

Relevance Score: 3 (The directive notably impacts a high-level agency director, placing responsibility on mid-to-senior management in regulatory oversight.)