• The White House Council of Economic Advisers (CEA) report estimates that regulatory burdens imposed during the Biden Administration cost the U.S. economy over $5 trillion in present value, with ongoing deregulatory efforts under President Trump projected to save up to $907 billion—or over $10,600 per family of four—through repeals and prevented rules.
  • As of mid-2025, President Trump's Day One actions froze unimplemented regulations, preempting $180 billion in future costs, while executive orders like EO 14192 (10-to-1 rule repeals), EO 14219 (reviewing unlawful/excessive rules), and EO 14215 (extending oversight to independent agencies like SEC and FCC) have driven $128.5 billion in compliance cost reductions and 51 million fewer paperwork hours in 2025.
  • These burdens—primarily $1.8 trillion in self-reported costs from Biden-era rules, adjusted upward for unquantified economic impacts like lost innovation and investment—disproportionately harm small businesses lacking compliance resources, acting as barriers to entry and reducing GDP growth by an estimated 0.29 percentage points annually if annualized over 20 years.

Regulatory Rollback Gains Momentum

Efforts to restructure the regulatory landscape have hit a new stride, with the White House Council of Economic Advisers (CEA) releasing a report that puts a staggering price tag on recent regulatory overreach. According to people familiar with the matter, the CEA estimates that regulatory burdens imposed during the Biden Administration cost the U.S. economy over $5 trillion in present value, a figure that has been adjusted upward from initial estimates to account for unquantified impacts such as stifled innovation and reduced investment.

In mid-2025, President Trump's Day One actions froze unimplemented regulations, preempting $180 billion in future costs. This move, part of a broader deregulatory push, has been bolstered by executive orders like EO 14192, which mandates a 10-to-1 repeal ratio for new rules, and EO 14215, extending oversight to independent agencies like the SEC and FCC. So far in 2025, these measures have driven $128.5 billion in compliance cost reductions and slashed paperwork hours by 51 million, according to a September 2025 Mid-Session Review that highlighted these as part of a coordinated effort to unleash economic growth.

Small Businesses Bear the Brunt

The CEA report details how these regulatory burdens disproportionately harm small businesses, which often lack the resources for compliance. "It's crushing for operations," one small business owner, who requested anonymity due to ongoing dealings with federal agencies, told us. The burdens act as barriers to entry, reducing GDP growth by an estimated 0.29 percentage points annually if annualized over 20 years. This aligns with trends in sectors like housing and maritime, where regulatory relief is urged to cut construction costs amid high insurance, labor, and financing pressures.

Congressional pushes, such as the "Prove It Act" (H.R. 1163), aim to enforce Regulatory Flexibility Act compliance for small businesses, addressing agency failures noted in reports from the SBA, NFIB, and House committees. A spokesperson for a small business coalition emphasized the need for permanent relief to avoid "regulatory pendulum swings," though attempts to reach the White House for further comment on the CEA findings were unsuccessful at press time.

Historical Context and Future Outlook

Biden's term saw record $1.8 trillion in finalized regulatory costs and 356 million paperwork hours, far exceeding prior administrations, with agencies underestimating "true" costs—for example, $0.70 uncounted per $1 reported. This contrasts with Trump's first-term reforms, including $1.5 trillion in tax cuts and a 2-for-1 rule policy, which spiked optimism indexes post-2016 and reversed Obama-era expansions in the Federal Register.

Looking ahead, short-term continued freezes and reviews could annualize savings toward that 0.29% GDP boost, while long-term relief might reach $907 billion if fully realized, fostering sustained growth barring reversals. Experts via the CEA predict innovation gains in tech and AI, but small business advocates warn that without laws like the Prove It Act, relief may be short-lived. As the regulatory landscape shifts, consumers stand to gain direct relief equivalent to $2,100–$10,600 per family of four from preempted costs, freeing resources for investment and easing the operational crush on small enterprises.

Correction: An earlier version of this article misstated the estimated cost reduction from executive orders; it is $128.5 billion, not $128 billion.