2025: A Pivotal Year for Reining in the Bureaucracy

For business owners, 2025 may be one of the most impactful years in state capitols nationwide. Recent Supreme Court developments, combined with frustration over the size and reach of regulatory agencies, have spurred a strong desire to rein in regulatory bodies nationwide. 

Regulatory agencies have been expanding unchecked for years. According to the Mercatus Center’s 2024 Snapshot of State Regulations, roughly two-thirds of states have over 100,000 regulations impacting businesses. 

In the snapshot, the Mercatus Center outlines two major strategies for reducing state-level regulations. The first involves limiting regulatory budgets, creating incentives and mandates to reduce regulations, and restricting the funding for new ones. The second strategy proposes requiring that regulations automatically “sunset,” removing outdated and ineffective rules from the books and ensuring any retained regulations are periodically reviewed for necessity and effectiveness.

See Also: Unburdened By What Has Been: AAF Fights to Slash Government Agencies

These are two of the goals American Action Fund (AAF) and our Hazlitt Coalition members are focusing on in 2025. AAF and many of our partners have been working for months on model legislation to implement systems like those proposed by the Mercatus Center. Some states are exploring “x-in, x-out” requirements, where new regulations would only be approved if an existing regulation is repealed. Others are looking to introduce legislative oversight of regulatory agencies, inspired by the overturning of the Chevron doctrine. There’s even growing support for a state-level REINS Act, which would require legislative review of regulations that are financially burdensome, overly broad, infringe on rights, or stifle competition through market manipulation.

Not all approaches will be equally effective, and some states face significant hurdles to implementing these essential checks. However, reining in the regulatory state is crucial for securing the future of liberty and prosperity across the country.