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Government Affairs Update

By Tom Morrison posted 02-02-2017 09:37 AM

  

NAM Report Shows There Are 297,696 US Regulations That Restrict Manufacturing

The Washington Post (1/25, Marks) says President Trump “should probably be paying attention to a new report from the National Association of Manufacturers,” which shows that there “are 297,696 regulations that are currently restricting the efforts of manufacturers.” The Post adds that while “many of these rules are important and designed to protect the public,” a “great many feel that the regulatory environment has gone well beyond what’s reasonable.” NAM President and CEO Jay Timmons is quoted saying, “As this study demonstrates, manufacturers work diligently to comply with regulations handed down from Washington. ...We believe in smart regulations that keep our communities and workplaces safe, but too often, these rules go too far or are too complex.”

Trump to Remove 75% of Regulations on Businesses

The Washington Post (1/23, Johnson, Mui) reports that President Trump held a breakfast meeting Monday with manufacturing executives, during which he “promised to wipe out at least 75% of government regulations that hinder their businesses, fast-track their plans to open factories, and cut taxes ‘massively.’” Trump told the executives, “We’re going to be cutting regulation massively. ...Now, we’re going to have regulation, and it’ll be just as strong and just as good and just as protective of the people as the regulation we have right now.” On its website, CNBC (1/23, Pramuk) said a White House spokesman “did not immediately respond to a request to elaborate on which rules Trump will target or how the 75% was calculated.”

Citing a Reuters report, MFR Tech (1/23) covers the meeting, saying that regulations are “a serious concern for manufacturers.” The article also cites the NAM’s “Holding US Back: Regulation of the U.S. Manufacturing Sector” study, which says that manufacturers “face 297,696 restrictions on their operations from federal regulations.”      

Politico (1/23, Conway) quotes Trump as saying during the meeting, “We are going to be cutting taxes massively both for the middle class and for companies — and that’s massively.” Trump said that existing regulations on businesses are cumbersome and unnecessary, adding that his administration plans to lower the nation’s corporate tax rate as well. 

USA Today (1/30, Korte) reports that President Trump on Monday signed an executive action he said will “knock out two regulations for every new regulation” federal agencies adopt. Trump called the action “the largest cut by far, in terms of regulation,” in history and said the policy was targeted at small business. Trump said, “There will be regulation, there will be control, but there will be normalized control where you can open your business and expand your business.” Reuters (1/30, Rascoe) says Trump’s action “will prepare a process for the White House to set an annual cap on the cost of new regulations.” For the remainder of the fiscal year, “the cap will require that the cost of any additional regulations be completely offset by undoing existing rules.” Trump tweeted, “The American dream is back. We’re going to create an environment for small business like we haven’t had in many, many decades!” Meanwhile, NAM President and CEO Jay Timmons tweeted that Trump’s proposal “will modernize & streamline” government. He also said that “makes agencies determine the tradeoffs that [manufacturers] do every day.”      

While a Wall Street Journal (1/30, Subscription Publication) editorial praises the order, arguing that it could lead to job creation and new investment, a number of reports highlights the difficulty Trump may face in putting it into action.        

House Expected To Begin Using Congressional Review Act This Week to Overturn “Midnight Regulations”

The New York Times (1/30, Huetteman, Subscription Publication) reports the House of Representatives this week is expected to use the Congressional Review Act “to start the process of tossing out five rules, including one that limits the venting of methane, a powerful greenhouse gas, from oil- and gas-drilling facilities and another that requires federal contractors to report previous labor law violations.” The Times adds, “Though the time frame can vary, the law allows Congress at least 60 days to review a major rule before it goes into effect. During that period, lawmakers can object, and, if enough of them agree, eventually overturn it with the president’s signature.”     

In a press release, the National Association of Manufacturers issued its support for legislation to be considered by Congress that would support repeal of several onerous regulations introduced in late-term Obama regulations. NAM Senior Vice President of Policy and Government Relations Aric Newhouse is quoted saying, “Many of these regulations seriously impact the success and growth of manufacturers in the United States,” but the House this week “will take an important step toward peeling back some of these burdensome regulations and, in doing so, help manufacturers succeed in a very competitive business environment.”

Government Affairs update provided by the National Association of Manufacturers

 

 

 

 

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