Bureaucracy

Report: Federal Regulatory Compliance Costs $2 Trillion Annually

Red tape issued by bureaucrats outstrips the impact of legislation.

J.D. Tuccille | 4.13.2026 7:00 AM

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(Illustration: Competitive Enterprise Institute/Pop Nukoonrat/Dreamstime)

Anybody who runs a business or engages in regulated activities knows that government red tape imposes a significant burden. Those burdens can be very high, deterring entrepreneurs from launching companies, restraining the growth of those that already exist, and driving some people to operate illegally rather than try to deal with an administrative state that specializes in obstructionism. But just how much do federal regulations cost us? A new report from the Competitive Enterprise Institute (CEI) tries to tally the price tag—and warns that Washington, D.C. needs major reform.

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The Out-of-Control Regulatory State

That the regulatory state is out of control isn't really a debatable point. The Federal Register lists 445 agencies with the legal authority to publish regulations. Forbes noted that "federal departments, agencies, and commissions issued 3,853 rules in 2016, while Congress passed and the president signed 214 bills into law." In May of last year, the White House acknowledged that "the United States is drastically overregulated" and that "the Code of Federal Regulations contains over 48,000 sections, stretching over 175,000 pages….Worse, many carry potential criminal penalties for violations."

The Trump administration tried to roll........

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