The Brookings Center on Regulation and Markets is tracking deregulation under President Trump.
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April 11, 2018

The Brookings Center on Regulation and Markets is tracking deregulation under President Trump. Below are some of the latest stories we’re following regarding deregulation.

Visit the deregulation tracker to learn more

Top stories we're following

5th Circuit Court vacates the Fiduciary Rule: The controversial Fiduciary Rule, issued by President Obama’s Department of Labor, imposed broad obligations on all financial advisors to act in their clients’ best interests. After a lawsuit challenging the rule in a Texas district court was thrown out in February 2017, Labor Secretary Alex Acosta published an op-ed in May 2017 in which he stated that, out of respect for the law, the department would begin to enforce the rule. However, the Texas district court’s decision was appealed to the 5th Circuit Court of Appeals, which on March 15, 2018, reversed the lower court’s ruling, vacating the Fiduciary Rule in its entirety. It is unlikely that the Department of Labor will challenge this ruling, meaning the end of the Fiduciary Rule. 

Challenges to Net Neutrality’s repeal begin: After years of debate, regulations to protect Net Neutrality were finalized in April 2015. The FCC, under Trump appointee Ajit Pai, voted on December 14, 2017, to repeal the regulations protecting Net Neutrality. Senator Ed Markey (D-MA) announced he would introduce a CRA resolution in an attempt to overturn the FCC decision, and New York state attorney general Eric Schneiderman announced his intent to sue. The final rule eliminating Net Neutrality was published on February 22, 2018, triggering a flurry of lawsuits, including a petition filed by 23 state attorneys general led by Schneiderman, and challenges from technology companies and public advocacy groups. Senator Markey introduced his CRA resolution, which currently has 48 cosponsors (every Democratic and Independent member), and Republican Senator Susan Collins (R-ME) has announced her support of the bill. This likely clears the way for an eventual vote on the Senate floor, given that a CRA resolution can be discharged from committee by a petition of 30 senators, and once on the Senate floor it cannot be filibustered. But even if the Senate resolution passes, it must still pass the House and be signed by the president. The repeal of Net Neutrality becomes effective on April 23, 2018. 

EPA to revise ambitious Obama-era fuel economy standards: The Obama administration’s Department of Transportation and Environmental Protection Agency promulgated new regulations of Corporate Average Fuel Economy (CAFE) standards to reduce greenhouse gas emissions from passenger vehicles. The finalized rule, issued in October 2017, aimed to steadily increase the average fuel efficiency requirements for new passenger vehicles to 54.5 miles per gallon by 2025. While fuel economy standards for model years 2017-2021 were finalized in the October 2017 rulemaking, the standards for model years 2022-2025 were subject to a midterm review, which was to be conducted by 2018. On January 13, 2017, just one week before President Trump's inauguration, the agencies issued their final determination, which concluded that automakers were capable of meeting the 2022-2025 standards that were initially proposed in the October 2017 final rule. On April 2, 2018, in response to a letter sent by the Auto Alliance, the EPA withdrew the Obama administration's final determination, and issued a notice to re-open the midterm evaluation to further consider appropriate emissions standards for 2022-2025.

Senate votes to roll back Dodd-Frank regulations: Passed in the wake of the 2008 financial crisis, the Dodd-Frank Act imposed sweeping new regulations on the banking sector. In November 2017, Senate Banking Committee Chairman Mike Crapo (R-ID) announced he had reached a deal with Democrats on legislation that would ease some of Dodd-Frank’s rules on banks. The Economic Growth, Regulatory Relief, and Consumer Protection Act, introduced in the Senate on November 16, 2017, would make targeted changes to several major provisions of Dodd-Frank. Notably, the bill exempts smaller banks with limited trading operations from the Volcker Rule, which prohibits federally insured depository institutions from engaging in proprietary trading, and raises the threshold for banks to be considered “systemically important” from $50 billion in assets to $250 billion. The bill passed the Senate 67-31 on March 14, 2018, and is currently being held at the speaker’s desk in the House. The Chairman of the House Financial Services Committee, Jeb Hensarling (R-TX), has said he will not “rubber stamp” the Senate bill.

New entries to the Deregulation Tracker

  • Affordable Housing Program Amendments: A proposed rule to give Federal Home Loan Banks additional authority to allocate funds.
  • Elimination of the Broadcast Mid-Term Report: A rule eliminating the requirement for broadcasters to file a mid-term report.
  • Proposed amendments to the Coal Ash Rule: A proposed amendment to give states more flexibility to enforce the Coal Ash Rule.
  • Commercial Real Estate Appraisal Rule: A rule raising the threshold for which commercial real estate transactions require an appraisal.
  • Lawsuits filed over delay of the Deeming Rule: A rule expanding the definition of "tobacco products" for the purposes of FDA regulation.
  • Proposal to Eliminate Unnecessary Regulations at the Treasury Department: A proposed rule to remove regulations related to Treasury programs that are no longer in existence.
  • New compliance date set for Formaldehyde Emission Standards for Composite Wood Products: The EPA previously extended the compliance date for formaldehyde emissions standards to December 2018; a district court vacated the extension and set a new compliance date of June 1, 2018.
  • Hiring Flexibility for School Nutrition Program Directors: A proposed rule to expand hiring flexibility for school nutrition program directors.
  • Indefinite delay of Off-Label Intended Use Rule: A rule redefining the standard for evaluating "intended uses" of products regulated by the FDA.
  • Maintenance of Copies of FCC Rules: A rule eliminating the requirement for certain broadcast and cable entities to maintain paper copies of FCC regulations.
  • Revisions to the Methane Emissions Rule and proposal to withdraw Control Technique Guidelines: A rule clarifying requirements for “delayed repair”, and a proposal to withdraw the October 2016 Control Technique Guidelines for the oil and natural gas industry.
  • Court rules that initial area designations for the National Ambient Air Quality Standards must be completed: A rule revising national ambient air quality standards for ozone. A California district court ruled that the EPA must complete its initial area designations by April 30, 2018.
  • Withdrawal of the Organic Animal Welfare Rule: A rule requiring the humane treatment of “certified organic” animals.
  • Court vacates delay of the Pesticide Applicator Certification Rule: A rule to improve the competency of certified pesticide applicators. A California district court ruled that the EPA’s delay of the effective date was unlawful.
  • Amendment to the Pre-Shift Mining Examinations Rule: A rule allowing safety and health examinations of mines to be conducted after miners begin work.
  • Nullification of a proposal to partially rescind the Tip Credit Rule: A proposed rule to expand tip sharing to include employees who do not regularly receive tips. The Consolidated Appropriations Act of 2018 (“omnibus spending bill”) nullified this proposed rule.
  • Aerosol Cans added to the Universal Waste Rule: A rule adding hazardous waste aerosol cans to the universal waste program.

More from the Brookings Center on Regulation and Markets

Aaron Klein on how the Senate banking bill changes Dodd-Frank.

Philip Wallach on the ironic politics of regulatory reform.

Ian Ayres and Abraham Winkelgren on a gun control solution manufacturers could support.