600 and Counting...
The runaway regulatory state is costing hardworking Americans billions of dollars to cover the costs of major regulations.
- According to the American Action Forum, the U.S. government created 300 new regulations, with a total cost of $99 billion in regulatory costs in 2015 alone.
- In 2016, over 250 regulations have been finalized with a cost of $106 billion for American families and job creators.
- Of the over 2,800 regulations finalized in the Obama Administration, 600 are "major rules" - those costing Americans more than $100 million annually.
- Federal regulatory burdens have reached at least an estimated $1.86 trillion, which adds up to approximately $15,000 annually per U.S. household.
The costs are only exacerbated when “high impact” regulations must face years of litigation and review in the courts.
- Challenging high impact regulations in the court often takes years and costs the American taxpayer billions of dollars.
- While high impact rules are being challenged, the billions of unnecessary compliance costs must still be covered by hardworking Americans and small businesses.
- Without a stay imposed by the agency or the court, the costs to cover regulations still must be paid for while the lawfulness of new regulations is being challenged in court.
One of Obama's rules in particular, the Department of Labor's "Overtime Rule," at $304 million dollars annually in costs to America's job creators, could negatively affect businesses by increasing their labor costs, but is more likely to harm mid-level managers because businesses will likely reduce their hours to avoid paying overtime. This trend is particularly harmful to younger workers who are limited to part-time employment because businesses will not want to have to provide benefits or pay overtime wages. I am also concerned about the impacts this rule will have on faith based organizations, as this rule will directly hurt those served by their charitable work. The rule is
In Missouri's Fourth District I have heard from:
Local schools – Schools have expressed concerns that they, too, will be forced to cut staff and limit the educational services they are able to provide. For instance, administrators in a public school system have told me they may have to cut support staff and reduce extra-curricular activities to adjust for rising costs of the new rules.
Local and community banks – A bank in my district will have to transition 13 of their salaried tellers on staff to hourly wage workers in order to cut the $129,000 in compliance costs they anticipate from this rule, which will likely have a negative impact on the employees’ morale, a reduction in their benefits, and a lower standard of living for their families.
Businesses – Several businesses are struggling with how to implement this provision, keep workers, and maintain morale. One large distribution company has over 70 workers who are going to have to “clock in” and “clock out” every day and, for the first time, cease working at exactly 40 hours. This demotion to hourly is demoralizing for them and has resulted in friction not experienced before in the workplace.
Faith based organizations – Religious organizations have also told me that they will have to cut staff and thus be hindered in their ability to provide charitable services. Many choose to work in the non-profit industry because they value the work they do above compensation and will be forced to choose between serving their community or breaking the law if they work more than 40 hours a week.
Washington’s top-down mandates are hurting our friends and neighbors. We need to stop these overbearing regulations which cripple industries and harm American livelihoods. Instead of stifling opportunity, we should remove barriers to job creation and economic prosperity.
The REVIEW Act stops “high impact rules” with costs over $1 billion dollars annually from taking effect until all court challenges to the regulations in question are settled.
- The bill amends the Administrative Procedures Act to place an automatic administrative stay of all “high impact rules” pending final judicial review if a legal challenge is filed within 60 days or the time otherwise prescribed to seek judicial review.
- The REVIEW Act also codifies the definition of a “high impact rule” as those with costs over $1 billion dollars annually.
- The REVIEW Act will free billions of precious dollars to be spent on jobs and investment in order for America to recover fully from economic hard times.