# The RED Tape Act of 2023: What It Actually Does

This bill creates a new rule for federal agencies: before they can create a new regulation that costs money or creates paperwork for businesses and people, they first have to get rid of at least two existing regulations. Think of it like a "two out, one in" policy for government rules. If an agency wants to issue a brand new regulation, they must repeal two old ones. If they want to change an existing regulation to make it more burdensome, they need to repeal or change two other regulations first. The cost of the new or changed rule also can't exceed the cost savings from getting rid of the old ones—the agency head has to officially certify that the math works out.

The bill applies to any regulation that creates what the agency considers a "financial or administrative burden" on businesses or people. This is pretty broad and includes rules that come from executive orders, presidential memos, or even agency guidance documents. Agencies would have to publish their plans for new regulations and repeals every six months so the public can see what's coming. There are a few exceptions—rules about how an agency runs itself internally, or rules that are being changed to make them less burdensome, don't trigger this requirement.

The practical effect is that this bill would significantly slow down the regulatory process. Agencies couldn't quickly respond to new problems or emerging issues without first dismantling existing rules. Supporters argue this prevents regulatory overreach and reduces red tape. Critics worry it could prevent agencies from protecting public health, safety, or the environment when new threats emerge, since they'd be forced to eliminate other protections first. For everyday people, this could mean slower responses to things like food safety issues, workplace hazards, or environmental problems—but it could also mean fewer new rules affecting businesses and potentially lower costs for consumers if those savings get passed along.

RED Tape Act of 2023

Nehls, Troy E.

Regulations Endanger Democracy Act of 2023 or the RED Tape Act of 2023 This bill prohibits, with certain exceptions, a federal agency from issuing a rule that causes a new financial or administrative burden on businesses or people in the United States unless the agency has repealed or amended two or more existing rules causing such a burden and the cost of the rule to be issued is less than or equal to that of the rules repealed or amended. In determining whether to repeal such a rule, an agency must consider (1) whether the rule has achieved its purpose, has become obsolete, or overlaps with a rule to be issued; (2) any adverse effects that could materialize if the rule is repealed; and (3) whether the costs of the rule outweigh its benefits.