Austin American-Statesman

Administra­tion deregulati­on push gathers steam,

Rules were aimed at Wall Street, gun sellers, miners, more.

- Eric Lipton and Binyamin Appelbaum ©2017 The New York Times

Telecommun­ications WASHINGTON — giants like Verizon and AT&T will not have to take “reasonable measures” to ensure that their customers’ Social Security numbers, web browsing history and other personal informatio­n are not stolen or accidental­ly released.

Wall Street banks like Goldman Sachs and JPMorgan Chase will not be punished, at least for now, for not collecting extra money from customers to cover potential losses from certain kinds of high-risk trades that helped unleash the 2008 financial crisis.

And Social Security Administra­tion data will no longer be used to try to block individual­s with disabling mental health issues from buying handguns, nor will hunters be banned from using lead-based bullets, which can accidental­ly poison wildlife, on 150 million acres of federal lands.

These are just a few of the more than 90 regulation­s that federal agencies and the Republican-controlled Congress have delayed, suspended or reversed in the month and a half since President Donald Trump took office, according to a tally by The New York Times.

The emerging effort — dozens of additional rules could be eliminated in the coming weeks — represents one of the most significan­t shifts in regulatory policy in recent decades. It is the leading edge of what Stephen Bannon, Trump’s chief strategist, described late last month as “the deconstruc­tion of the administra­tive state.”

In many cases, records show that the changes came after appeals by corporate lobbyists and trade associatio­n executives, who see a potentiall­y historic opportunit­y to lower compliance costs and drive up profits. Slashing regulation­s, they argue, will unleash economic growth.

On a near daily basis, regulated industries are sending in specific requests to the Trump administra­tion for more rollbacks, including recent appeals from 17 automakers to rescind an agreement to increase mileage standards for their fleets, and another from pharmaceut­ical industry figures to reverse a new rule that tightens scrutiny over the marketing of prescripti­on drugs for unapproved uses. As of late Friday, word had leaked that the automakers’ request for a rollback was about to be granted, too.

“After a relentless, eightyear regulatory onslaught that loaded unpreceden­ted burdens on businesses and the economy, relief is finally on the way,” Thomas J. Donohue, president of the U.S. Chamber of Commerce, wrote in a memo last week.

But dozens of public interest groups — environmen­talists, labor unions, consumer watchdogs — have sounded the alarm about the potential threat to Americans’ well-being. “Americans did not vote to be exposed to more health, safety, environmen­tal and financial dangers,” said one letter, signed by leaders of 137 nonprofit groups, that was sent to the White House last week.

In other cases, the Obamaera rules under attack have drawn objections even from some liberal groups that called them examples of overreach, like the American Civil Liberties Union’s protest of a system to block mentally ill people from buying guns.

The regulatory retrenchme­nt is unfolding on multiple fronts.

Congress, with Trump’s approval, has erased three Obama-era rules in the last month, lifting regulation­s related to coal mining and oil and gas exploratio­n, as well as the sale of guns to the mentally ill. More than 25 additional rules could also be erased in the coming weeks, with the House having voted to eliminate nearly half of them.

Trump has separately signed executive orders directing agencies to pursue the reversal of other rules, including a requiremen­t that financial advisers act in the interest of their clients, and a rule aimed at protecting drinking water from pollution.

New White House appointees at agencies including the Federal Communicat­ions Commission, the Securities and Exchange Commission, the Interior Department and the Environmen­tal Protection Agency have also personally intervened in recent weeks to block, delay or start the process to nullify other rules, such as a requiremen­t that corporatio­ns publish tallies comparing chief executive pay with average employee wages.

Presidents wield considerab­le influence over the rule-making process. They set the agenda and appoint the rule-makers, and, since the Reagan administra­tion, a White House office has reviewed every major regulation to try to ensure that benefits to society exceeded compliance costs. It is not uncommon for new presidents to make quick changes in regulatory policy or try to reverse certain last-minute rules their predecesso­rs enacted.

Barack Obama, shortly after being elected president, pressed the EPA to let the state of California set more stringent limits on auto emissions, a proposal that the Bush administra­tion had rejected.

But the courts have generally held that new administra­tions need to justify such reversals. The best-known case involved the Reagan administra­tion, which tried to rescind a rule requiring air bags in passenger vehicles. The courts found the move unjustifie­d.

“It is not a relevant or adequate defense to say that the president told us to do it,” said Michael Eric Herz, a professor at the Benjamin N. Cardozo School of Law in New York.

The Trump administra­tion could face similar challenges — the new requiremen­t that agencies must find two regulation­s to eliminate before enacting any new rules is being challenged in federal court by two liberal groups.

In addition, Democratic attorneys general from New York, Hawaii, Massachuse­tts, Oregon and Vermont have threatened in recent days to sue the Trump administra­tion to try to block some of the regulatory rollbacks.

This shift in federal regulatory policy is having implicatio­ns for tens of thousands of citizens nationwide.

Nearly two years ago, the Social Security Administra­tion first moved to set up a new system that would automatica­lly turn over to the Justice Department informatio­n it collects on Americans who are receiving federal benefits based on a disabling mental illness for inclusion in a database used for gun background checks.

This would effectivel­y prevent these individual­s — an estimated 75,000 per year — from buying guns unless they sought a Justice Department waiver after being rejected, given the long-standing federal limitation on the sale of firearms to individual­s with known mental illnesses.

Groups like the National Rifle Associatio­n, the ACLU and the National Alliance on Mental Illness objected to the provision, which had been scheduled to go into effect in January. They argued that it unfairly presumed a tendency toward violence by a wide range of people with mental disabiliti­es, including conditions like bulimia and obsessive compulsive disorder.

Trump signed legislatio­n Tuesday revoking that rule under the Congressio­nal Review Act, which gives Congress a limited window to overturn the decisions of regulatory agencies.

A total of 46 such Congressio­nal Review Act resolution­s are pending in Congress, on topics including air pollution, unemployme­nt compensati­on, endangered species listings, debit card fees and oil and gas drilling on federal lands as well as the Arctic Outer Continenta­l Shelf.

The act, first adopted in 1996, had been used only once before to nullify a regulation, at the start of the Bush administra­tion in 2001, when a Clinton-era rule was revoked.

Rules not subject to congressio­nal review may still be at risk. The most radical shift has perhaps come at the Federal Communicat­ions Commission, which voted Wednesday to halt new government rules related to data security from taking effect this week, after objections were raised by companies including Comcast, Verizon and AT&T.

Ajit Pai, a Republican whom Trump recently named FCC chairman, has also made clear that he intends to push to roll back or abandon several other major rules, including the landmark net neutrality regulation intended to ensure equal access to content on the internet, as well as efforts to keep prison phone rates down and a proposal to break open the cable box market.

The efforts have been praised by telecommun­ications giants, like Comcast, but condemned by consumer advocates.

 ?? NEW YORK TIMES 2016 ?? People check out weapons at an NRA convention last year. The NRA and the ACLU were among the groups that objected to using Social Security Administra­tion data to prevent gun sales to people with disabling mental illness.
NEW YORK TIMES 2016 People check out weapons at an NRA convention last year. The NRA and the ACLU were among the groups that objected to using Social Security Administra­tion data to prevent gun sales to people with disabling mental illness.

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