Trump's Regulatory Overhaul: Agencies Scramble to Repeal Rules

Trump's 2025 order directs agencies to repeal unlawful rules, citing Supreme Court shifts. Impacts on economy, environment spark debate.

Trump's Regulatory Overhaul: Agencies Scramble to Repeal Rules NewsVane

Published: April 9, 2025

Written by Claudia Cano

A Bold Move to Reshape Regulation

On April 9, 2025, President Donald Trump issued a memorandum directing federal agencies to identify and repeal regulations deemed unlawful, building on an executive order from February. The directive zeroes in on rules that conflict with a string of recent Supreme Court decisions, aiming to slash what the administration calls burdensome red tape. It’s a high-stakes play, one that promises to shake up how government oversees everything from coal mines to Wall Street.

The push isn’t subtle. Agency heads have 60 days to comb through their rulebooks, pinpointing regulations that overstep legal bounds, and then act fast to scrap them. For anyone new to the Washington grind, this means less bureaucracy but also less predictability. Businesses might cheer the freedom; others worry about what gets left unchecked. It’s a real-world shift, not just a paper shuffle.

Supreme Court Sets the Stage

This isn’t happening in a vacuum. The Supreme Court has been busy, handing down rulings that clip the wings of federal agencies. Take Loper Bright Enterprises v. Raimondo from 2024 - it tossed out a decades-old practice of courts deferring to agencies on murky laws. Now, judges call the shots on what statutes mean, not bureaucrats. Another case, West Virginia v. EPA, told the Environmental Protection Agency it can’t tackle big climate rules without a clear nod from Congress.

The list goes on: SEC v. Jarkesy demands jury trials for some financial penalties, while Sackett v. EPA tightened what counts as protected wetlands. These decisions aren’t random; they signal a judiciary flexing its muscle, insisting agencies stick to what lawmakers explicitly allow. The White House is seizing that momentum, arguing many old rules don’t pass muster anymore.

Fast-Tracking the Rollback

Here’s where it gets practical. The memorandum leans on a legal shortcut - the 'good cause' exception - letting agencies ditch public input for these repeals if waiting would harm the public interest. It’s a tool meant for emergencies, like disaster relief, but its use here is broader. The logic? If a rule’s illegal, keeping it around hurts more than scrapping it quick. Agencies have to explain why, though, and report back on any rules they leave standing.

Not everyone’s sold. Legal experts point to past court fights over this exception, noting it’s been struck down when stretched too far. Supporters say it’s a no-brainer for rules already doomed by Supreme Court precedent. Critics, including some environmental and consumer advocates, argue it shuts out voices - farmers, workers, even small businesses - who rely on those rules for stability.

Winners, Losers, and What’s at Stake

The ripple effects are hard to miss. Energy companies could see fewer hurdles to coal leases, a nod to Trump’s fossil fuel focus. But renewable energy projects, like offshore wind, might stall without clear rules to guide them. Small businesses, often tangled in compliance costs, could breathe easier. Yet, financial watchdogs warn that easing up on oversight - say, in banking or healthcare - risks repeating messes like the 2008 crash.

History offers a mixed bag. Deregulation in the ‘80s and ‘90s spurred growth but also left gaps that stung later. Today, the stakes feel just as high. Jobs might boom in some sectors; air quality or worker protections could take a hit in others. It’s less about ideology and more about trade-offs - tangible stuff like paychecks, power bills, and clean water.

A Tightrope Walk for Agencies

Agency heads are in a bind. They’ve got to move fast, but the Supreme Court’s new lens means every repealed rule could face a legal challenge. Courts might not buy the 'good cause' argument if it looks rushed or sloppy. Meanwhile, industries awaiting clarity - think construction or agriculture - could be stuck in limbo if repeal efforts drag into lawsuits.

The bigger picture isn’t lost here. This directive ties into a broader pledge to shrink government’s footprint, echoing Trump’s campaign talk of efficiency. Whether it delivers depends on execution - and on whether Congress steps up with clearer laws to fill the gaps. For now, agencies are racing the clock, and the public’s watching.

What Comes Next

This deregulation wave is just getting started. By mid-2025, we’ll see which rules survive and which hit the chopping block. The White House frames it as a win for innovation and everyday Americans - fewer hoops, more growth. But the pushback’s already brewing, with lawsuits likely and debates heating up over what ‘unlawful’ really means in practice.

For people outside the Beltway, it’s not abstract. It’s about whether their local factory reopens or their river stays fishable. The Supreme Court lit the fuse, and this memorandum’s fanning the flame. How it plays out could redefine what government can - and can’t - do for years.