Date issued: January 31, 2025
Government next steps: Agencies must submit regulatory plans as required, and agency heads must ensure that the total incremental cost of all new and repealed regulations is significantly less than zero in fiscal year 2025.
Anticipated outcomes: Rapid regulatory changes, potential compliance gaps, and legal uncertainties.
Executive Order Overview
President Trump’s new executive order mandates that federal agencies, except where prohibited by law, repeal 10 existing rules, regulations, or guidance documents for every new one enacted. While the new executive order is broad in scope, the Director of the Office of Management and Budget has oversight in implementation, including the processes involved in identifying regulations for repeal, differentiating between rules and regulations, and estimating regulatory costs. The policy seeks to reduce constraints on economic growth and regulatory burdens on businesses, yet creates uncertainty as agencies race to identify regulations for repeal.
Key Legal Considerations for In-House Counsel
- Monitor deregulation announcements: Stay informed as agencies announce which regulations are being repealed and determine the impact on your business, including any contract updates that may be required.
- Assess internal compliance programs: Even if regulations are rolled back, internal compliance standards should not be relaxed—legal risks remain.
- Engage in industry advocacy: Trade groups and legal coalitions may influence which regulations remain in place – tap into their resources to stay abreast of what may be to come.
- Prepare for litigation risks: Consumers, competitors, or advocacy groups may challenge deregulations in court, delaying implementation.
Ways to Leverage LinkSquares to Navigate Regulatory Shifts
- Flag contracts with specific regulatory requirements leveraging Smart Values and Tags within Analyze, including:
- Contracts with general and/or specific regulatory compliance requirements or representations;
- Contracts with regulatory change notification requirements; and
- Contracts with general compliance audit rights.
- Track regulatory-driven reviews and cross-functional impacts using Prioritize tasks to identify agreements or internal policies requiring amendments or potential termination due to deregulation announcements.
- Create standard Finalize workflows for regulatory-driven contract amendments while maintaining clear audit trails.
Next Steps for Businesses
- Develop an internal regulatory tracking system to follow rule changes.
- Engage with external counsel to ensure ongoing compliance.
- Prepare compliance teams for potential shifts in corporate obligations.