Calls Grow to Rein in Bloated Federal Regulatory State

New analysis highlights the staggering economic costs of excessive red tape in Washington.

Apr. 18, 2026 at 7:25am

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A serene, cinematic painting of a government office building or workspace, with warm sunlight streaming through the windows and deep shadows enveloping the scene, conveying a sense of the weighty, imposing nature of the federal regulatory apparatus.The towering bureaucracy of the federal regulatory state casts a long shadow over the economy, highlighting the need for reforms to rein in excessive red tape.Washington Today

A new report from the Competitive Enterprise Institute reveals the massive scale of federal regulations, with the total compliance costs and economic effects amounting to at least $2.153 trillion annually - the equivalent of an average regulatory tax of nearly $16,000 per family. The report calls for reforms to push back the regulatory beast and restore the proper balance between the executive and legislative branches.

Why it matters

Excessive and redundant federal regulations have been shown to stifle economic growth, increase consumer costs, and eliminate jobs. Efforts to rein in the administrative state are critical to promoting innovation, reducing the burden on businesses and families, and upholding the separation of powers outlined in the Constitution.

The details

The CEI report found that federal agencies now impose 22 rules for every law passed by Congress, showcasing the need to reset the balance of power between the executive and legislative branches. While some regulations are necessary, many are redundant, wasteful, and anti-competitive, adding unnecessary costs. For example, the Cato Institute calculated that the TSA's airport shoe removal rule, in place from 2005 to 2024, 'easily imposed tens of billions of dollars in economic costs over the 19 years it was pointlessly in place.'

  • The Competitive Enterprise Institute released its annual Ten Thousand Commandments report on federal regulations on April 15, 2026.
  • The TSA's airport shoe removal rule was implemented in 2005 and finally repealed in 2024.

The players

Competitive Enterprise Institute

A non-profit public policy organization that advocates for limited government, free enterprise, and individual liberty.

Cato Institute

A public policy research organization dedicated to the principles of individual liberty, limited government, free markets, and peace.

Donald Trump

The 45th President of the United States, who made efforts to reduce federal regulations during his administration.

Joe Biden

The 46th President of the United States, whose administration saw an increase in the number of pages in the Federal Register.

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What they’re saying

“the average person unknowingly commits several federal crimes daily.”

— Harvey Silverglate, Attorney

What’s next

The White House and the Supreme Court are expected to continue efforts to rein in the regulatory state and restore the balance of power between the executive and legislative branches. Congress may also consider legislation to establish a Regulatory Reduction Committee to identify and eliminate outdated, unnecessary, and duplicative rules.

The takeaway

Excessive federal regulations impose a massive economic burden on businesses and families, stifling innovation and growth. Reforms to streamline the regulatory apparatus and restore the proper separation of powers are critical to promoting a thriving, free-market economy.