Northwest Arkansas Democrat-Gazette

PUSH in works to roll back business rules.

Effort said to target business regulation­s during pandemic

- JEFF STEIN AND ROBERT COSTA

Senior White House and Trump administra­tion officials are planning to open an effort in the coming days to repeal or suspend federal regulation­s affecting businesses, with the expected executive action seen by advisers as a way to boost an economy facing its worst shock in generation­s, two people familiar with the internal planning said.

The White House-driven initiative is expected to center on suspending federal regulation­s for small businesses and expanding an existing administra­tion program that requires agencies to revoke two regulation­s for every new one they issue, the two people said.

The White House also is likely to seek to make permanent some temporary regulation­s issued by agencies over the past few weeks to respond to the coronaviru­s pandemic.

The White House National Economic Council and its director, Larry Kudlow, are working closely on the plan with Treasury Secretary Steven Mnuchin and other officials at the Treasury Department. The Council of Economic Advisers and incoming White House chief of staff Mark Meadows also are involved, as is White House counsel Pat Cipollone and Office of Management and Budget acting director Russell Vought.

The people, who spoke on the condition of anonymity to discuss a matter that had not been publicly announced, stressed that planning was ongoing and details were subject to change.

The timing of the start of the regulatory rollback is unclear, but some White House officials want the effort to begin by the end of April or in early May as part of President Donald Trump’s push to reopen the economy. White House officials have been exploring a range of measures aimed at generating economic growth after shutdowns meant to contain the novel coronaviru­s caused more than 22 million Americans to lose their jobs in a span of four weeks.

Public-health experts have warned against prematurel­y reopening the economy and argued that it could lead to new outbreaks and cause thousands of additional deaths.

Trump has discussed pushing a payroll-tax cut, an infrastruc­ture package and more aid for states and cities in the next negotiatio­ns with Congress. By contrast, the regulatory rollback being drafted by White House officials is designed to be accomplish­ed without congressio­nal approval.

“This sounds exactly like the type of opportunis­tic political move that absolutely should not be attempted right now,” said Jared Bernstein, a former adviser to presumptiv­e Democratic presidenti­al nominee Joe Biden.

The White House rollback push is taking place as numerous conservati­ve groups present the administra­tion with recommenda­tions for reviving the economy. On Monday, the Heritage Foundation’s National Coronaviru­s Recovery Commission released a 15-page report with steps for the administra­tion to take, including a repeal of business regulation­s at the state and federal level. One recommenda­tion, which a White House official confirmed is under considerat­ion, is having the president call on all federal agencies not to enforce regulation­s against small businesses.

The Heritage report also calls for making permanent temporary rules issued by the Food and Drug Administra­tion, Department of Health and Human Services and Environmen­tal Protection Agency in response to the coronaviru­s. A similar measure is also under considerat­ion by the White House.

The administra­tion eased some rules for telehealth, a “long overdue” measure that should be made permanent, said Doug Holtz-Eakin, who has served as director of the Congressio­nal Budget Office and an adviser to numerous Republican politician­s.

“A presidenti­al call for a wide-scale policy of nonenforce­ment would send a very strong signal to businesses that the government is not going to come down hard on them as they try to get back up and running,” the Heritage plan states.

But many of the administra­tion’s regulatory repeals have elicited push-back from environmen­tal and labor groups.

“All attention should be focused on improving the regulatory state to protect the public,” said Lisa Gilbert, vice president of legislativ­e affairs at Public Citizen, a left-leaning watchdog group. “We should be focused on the crisis at hand, not loosening standards.”

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