No Regulation Without Representation
- BY FGA
Who elects the legislature? The voters.
Who elects the president? The voters.
Who elects the federal bureaucracy? The…wait, what? No one?
That’s right: The federal bureaucracy is made up of thousands of unelected officials that wield their power through regulations and red tape. And the voters have no real say in what rules they impose.
Federal regulations cost American families dearly
Federal regulations cost the economy an estimated $1.9 trillion every year, with American families and businesses paying the price. According to the National Association of Manufacturers, for example, the average manufacturer coughs up nearly $20,000 per employee to comply with federal regulations each year. And according to the American Hospital Association, health systems, hospitals, and post-acute care providers shoulder nearly $39 billion a year “solely on the administrative activities related to regulatory compliance.”
Who pays the price for these increased costs? Americans.
Since President Biden took office, billions of dollars have been lost to his administration’s regulations on everything from energy production to car manufacturing and even to states’ Medicaid programs. The Biden administration’s attempt at bailing out student loans and the independent contractor rule that diminishes the freedom to work and the ability to set your own schedule are just two in a growing number of bureaucratic actions that are causing Americans to feel the pinch of rising prices and inflation, not to mention slowed job growth.
Until Congress puts their foot down, this won’t end. A new FGA paper highlights a proposed rule by the SEC that would require public companies to make climate-related disclosures. The cost to public companies? A minimum of $10 billion—likely more. Not to mention the inevitable rise in gas prices from this continued attack on fossil fuels.
The REINS Act would bring accountability to the regulatory process
Legislation reining in the bureaucracy and restoring voters’ voices in government is gaining momentum in Congress. The Regulations from the Executive in Need of Scrutiny—or REINS—Act would introduce accountability to the regulatory process by requiring Congress to approve any regulations estimated to cost more than $100 million. Under the REINS Act, lawmakers would have the authority to prevent any president or unelected bureaucrat from unilaterally driving up costs for American businesses and consumers. And as a result, lawmakers—who are held accountable to the voters through regular elections—would be on the hook to justify the costliest regulations before they are implemented.
WATCH: Our explainer video on the REINS Act
Congress has the constitutional mandate for national policy-making, not the executive bureaucracy. Sixty-eight percent of voters support congressional approval of new regulations that will cost $100 million or more. And all voters deserve a say over the regulations that impact their wallets and job opportunities.