Trump signs executive order to slash regulations

President Donald Trump signed an order on Monday that will seek to dramatically pare back federal regulations by requiring agencies to cut two existing regulations for every new rule introduced.

Trump's latest executive action will prepare a process for the White House to set an annual cap on the cost of new regulations. For the rest of fiscal 2017, the cap will require that the cost of any additional regulations be completely offset by undoing existing rules.

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President Trump settles into his new life as president
Canadian Prime Minister Justin Trudeau (R) is greeted by U.S. President Donald Trump prior to holdiing talks at the White House in Washington, U.S., February 13, 2017. REUTERS/Carlos Barria (
Japanese Prime Minister Shinzo Abe (L) and U.S. President Donald Trump (2nd L) are seen at Trump International Golf club in West Palm Beach, Florida, U.S., February 11, 2017. Picture taken February 11, 2017. Cabinet Public Relations Office/Handout via Reuters ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS.
U.S. President Donald Trump, First Lady Melania Trump (R), Japanese Prime Minister Shinzo Abe and his wife Akie Abe (L) pose for a photograph before attending dinner at Mar-a-Lago Club in Palm Beach, Florida, U.S., February 11, 2017. REUTERS/Carlos Barria
Japanese Prime Minister Shinzo Abe and Akie Abe (R) attend dinner with U.S. President Donald Trump his wife Melania (L) at Mar-a-Lago Club in Palm Beach, Florida U.S., February 10, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump holds his earpiece as he holds a joint press conference with Japanese Prime Minister Shinzo Abe (not pictured) at the White House in Washington, U.S., February 10, 2017. REUTERS/Jim Bourg
U.S. President Donald Trump watches as Vice President Mike Pence (R) swears in Jeff Sessions (L) as U.S. Attorney General while his wife Mary Sessions holds the Bible in the Oval Office of the White House in Washington February 9, 2017. REUTERS/Kevin Lamarque TPX IMAGES OF THE DAY
U.S. President Donald Trump and First Lady Melania Trump greet a marching band as they arrive at Trump International Golf club to watch the Super Bowl LI between New England Patriots and Atlanta Falcons in West Palm Beach, Florida, U.S., February 5, 2017. REUTERS/Carlos Barria
US President Donald Trump watches the Super Bowl with First Lady Melania Trump (R) and White House Chief of Staff Reince Priebus (L) at Trump International Golf Club Palm Beach in West Palm Beach, Florida on February 5, 2017. / AFP / MANDEL NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
US President Donald Trump salutes before boarding Air Force One from MacDill Air Force Base on February 6, 2017 in Tampa, Florida. President Donald Trump on Monday paid his first visit to US Central Command, meeting officers who will form the tip of the spear in implementing his new strategy to defeat the Islamic State group. / AFP / MANDEL NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
U.S. President Donald Trump and First Lady Melania Trump attend the 60th Annual Red Cross Gala at Mar-a-Lago club in Palm Beach, Florida, U.S., February 4, 2017. REUTERS/Carlos Barria
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U.S. President Donald Trump hosts a strategy and policy forum with chief executives of major U.S. companies at the White House in Washington, U.S. February 3, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump and Vice President Mike Pence leaves after meeting with Harley Davidson executives at the South Lawn of the White House in Washington U.S., February 2, 2017. REUTERS/Carlos Barria
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U.S. President Donald Trump arrives to announce his nomination of Neil Gorsuch for the empty associate justice seat of the U.S. Supreme Court at the White House in Washington, D.C., U.S., January 31, 2017. REUTERS/Carlos Barria
On Friday, February 3, a Marine salutes U.S. President Donald Trump as he boards Marine One on the South Lawn of the White House, en route to Andrews Airforce Base where he will depart for Palm Beach, Florida.. (Photo by Cheriss May/NurPhoto via Getty Images)
US President Donald Trump sits after signing a memorandum about Labor Department's rules on investing in the Oval Office of the White House on February 3, 2017 in Washington, DC. / AFP / Brendan Smialowski (Photo credit should read BRENDAN SMIALOWSKI/AFP/Getty Images)
WASHINGTON, DC - FEBRUARY 03: U.S. President Donald Trump delivers opening remarks at the beginning of a policy forum with (L-R) daughter Ivanka Trump, Global Infrastructure Partners Chairman Adebayo Ogunlesi, IBM CEO Ginni Rometty, PepsiCo CEO Indra Nooyi, Blackstone Group Chairman and CEO Stephen Schwarzman and other business leaders in the State Dining Room at the White House February 3, 2017 in Washington, DC. Leaders from the automotive and manufacturing industries, the financial and retail services and other powerful global businesses were invited to the meeting with Trump, his advisors and family. (Photo by Chip Somodevilla/Getty Images)
U.S. President Donald Trump arrives to announce his nomination of Neil Gorsuch for the empty associate justice seat of the U.S. Supreme Court at the White House in Washington, D.C., U.S., January 31, 2017. REUTERS/Carlos Barria TPX IMAGES OF THE DAY
U.S. President Donald Trump signs an executive order cutting regulations, accompanied by small business leaders at the Oval Office of the White House in Washington U.S., January 30, 2017. REUTERS/Carlos Barria
Activists gather outside the White House to protest President Donald Trump's executive actions on immigration in Washington January 29, 2017. REUTERS/Aaron P. Bernstein
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WASHINGTON, DC - FEBRUARY 1: (AFP OUT) President Donald Trump holds an African American History Month listening session attended by nominee to lead the Department of Housing and Urban Development (HUD) Ben Carson (R), Director of Communications for the Office of Public Liaison Omarosa Manigault (L) and other officials in the Roosevelt Room of the White House on February 1, 2017 in Washington, DC. (Photo by Michael Reynolds - Pool/Getty Images)
U.S. President Donald Trump gives a thumbs-up to reporters as he waits to speak by phone with the Saudi Arabia's King Salman in the Oval Office at the White House in Washington, U.S. January 29, 2017. REUTERS/Jonathan Ernst
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U.S. President Donald Trump holds an executive order dealing with members of the administration lobbying foreign governments, after signing it in the Oval Office at the White House in Washington, U.S. January 28, 2017. REUTERS/Jonathan Ernst
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WASHINGTON, DC - JANUARY 27: British Prime Minister Theresa May looks on as U.S. President Donald Trump speaks in The Oval Office at The White House on January 27, 2017 in Washington, DC. British Prime Minister Theresa May is on a two-day visit to the United States and will be the first world leader to meet with President Donald Trump. (Photo by Christopher Furlong/Getty Images)
Members of the Trump administration walk through the colonnade of the White House on January 27, 2017 in Washington, DC. / AFP / Brendan Smialowski (Photo credit should read BRENDAN SMIALOWSKI/AFP/Getty Images)
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"There will be regulation, there will be control, but it will be normalized control," Trump said as he signed the order in the Oval Office, surrounded by a group of small business owners.

Trump, a businessman turned politician, campaigned on a promise to reduce federal regulations that he said burdened American businesses.

During a meeting with the small business owners earlier on Monday, Trump said regulations are keeping businesses from expanding and banks from lending money.

"Dodd-Frank is a disaster. We're going to be doing a big number on Dodd-Frank," Trump said, referring to the 2010 Wall Street reform law.

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U.S. President Donald Trump speaks briefly to reporters as he arrives aboard Air Force One at Joint Base Andrews, Maryland, U.S. January 26, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump (C), flanked by Vice President Mike Pence (L) and Homeland Security Secretary John Kelly (R), takes the stage to deliver remarks at Homeland Security headquarters in Washington, U.S. January 25, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump walks through the Colonnade to the Oval Office after returning to the White House in Washington, U.S., January 26, 2017. REUTERS/Joshua Roberts
The Marine One helicopter transporting U.S. President Donald Trump is seen as it departs from the South Lawn of the White House in Washington, U.S., for a trip to Philadelphia, January 26, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump arrives to board Air Force One for travel to Philadelphia from Joint Base Andrews, Maryland, U.S. January 26, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump arrives aboard Air Force One at Philadelphia International Airport in Philadelphia, U.S. January 26, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump arrives aboard Air Force One at Philadelphia International Airport in Philadelphia, U.S. January 26, 2017. REUTERS/Jonathan Ernst
An attendee uses her iPhone to record U.S. President Donald J. Trump speaking during the 2017 "Congress of Tomorrow" Joint Republican Issues Conference in Philadelphia, Pennsylvania, U.S. January 26, 2017. REUTERS/Mark Makela
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U.S. President Donald Trump (R) and Vice President Mike Pence return to the White House after a visit to Homeland Security headquarters in Washington, U.S., January 25, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump signs the executive order for the reinstatement of the Mexico City Policy in the Oval Office of the White House in Washington January 23, 2017. With Trump (L-R) are Vice President Mike Pence, White House Chief of Staff Reince Priebus and head of the White House Trade Council Peter Navarro. REUTERS/Kevin Lamarque
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The White House is seen the day after U.S. President Donald Trump's inauguration in Washington, U.S., January 21, 2017. REUTERS/Carlos Barria
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Implementing the new policy may be difficult alongside the Trump administration's push to repeal and replace the Affordable Care Act, said Tom Bulleit, head of the healthcare practice in the Washington D.C. office of law firm Ropes & Gray.

As the Congress passes new legislation on health care, there will need to be new rules, Bulleit said.

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Protests for and against Obamacare
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Protests for and against Obamacare

Tea Party Patriots supporters hold signs protesting the Affordable Care Act in front of the Supreme Court as the court hears arguments on the health care reform bill on Tuesday, March 27, 2012.

(Photo By Bill Clark/CQ Roll Call)

Affordable Care Act supporters wave signs outside the Supreme Court after the court upheld court's Obamacare on Thursday, June 25, 2015.

(Photo By Bill Clark/CQ Roll Call)

A man holds signs during a protest on the second day of oral arguments for the Patient Protection and Affordable Care Act in front of the U.S. Supreme Court building on March 27, 2012 in Washington, DC. Today is the second of three days the high court has set aside to hear six hours of arguments over the constitutionality President Barack Obama's Patient Protection and Affordable Care Act.

(Photo by Mark Wilson/Getty Images)

Sister Caroline attends a rally with other supporters of religious freedom to praise the Supreme Court's decision in the Hobby Lobby, contraception coverage requirement case on June 30, 2014 in Chicago, Illinois. Oklahoma-based Hobby Lobby, which operates a chain of arts-and-craft stores, challenged the provision and the high court ruled 5-4 that requiring family-owned corporations to pay for insurance coverage for contraception under the Affordable Care Act violated a federal law protecting religious freedom.

(Photo by Scott Olson/Getty Images)

An Obamacare supporter counter protests a Tea Party rally in front of the U.S. Supreme Court in the morning hours of March 27, 2012 in Washington, DC. The Supreme Court continued to hear oral arguments on the Patient Protection and Affordable Care Act.

(Photo by Alex Wong/Getty Images)

Affordable Care Act supporters hold up signs outside the Supreme Court as they wait for the court's decision on Obamacare on Thursday, June 25, 2015.

(Photo By Bill Clark/CQ Roll Call)

Ron Kirby holds a sign while marching in protest of the Patient Protection and Affordable Care Act in front of the U.S. Supreme Court on March 26, 2012 in Washington, DC. Today the high court, which has set aside six hours over three days, will hear arguments over the constitutionality President Barack Obama's Patient Protection and Affordable Care Act.

(Photo by Mark Wilson/Getty Images)

A protester waves his bible in the air as he overpowered by cheers from supporters of the Affordable Care Act as they celebrate the opinion for health care outside of the Supreme Court in Washington,Thursday June 25, 2015. The Supreme Court on Thursday upheld the nationwide tax subsidies under President Barack Obama's health care overhaul, in a ruling that preserves health insurance for millions of Americans.

(Photo By Al Drago/CQ Roll Call)

Nuns, who are opposed to the Affordable Care Act's contraception mandate, and other supporters rally outside of the Supreme Court in Washington, D.C., U.S., on Wednesday, March 23, 2016. On Wednesday morning, the Supreme Court is scheduled to hear oral arguments in Zubik v. Burwell, a consolidated case brought by religious groups challenging a process for opting out of the Affordable Care Act's contraception mandate.

(Drew Angerer/Bloomberg via Getty Images)

Supporters of contraception rally before Zubik v. Burwell, an appeal brought by Christian groups demanding full exemption from the requirement to provide insurance covering contraception under the Affordable Care Act, is heard by the U.S. Supreme Court in Washington March 23, 2016.

(REUTERS/Joshua Roberts)

Protestors hold placards challenging 'Obamacare' outside of the US Supreme Court on March 4, 2015 in Washington, DC. The US Supreme Court heard a second challenge to US President Barack Obama's Affordable Care Act. The US Supreme Court faces a momentous case Wednesday on the sweeping health insurance reform law that President Barack Obama wants to leave as part of his legacy. The question before the court is whether the seven million people or more who subscribed via the government's website can obtain tax subsidies that make the coverage affordable. A ruling is expected in June.

(MANDEL NGAN/AFP/Getty Images)

 Linda Door (L) protests against President Obama's health care plan in front of the U.S. Supreme Court Building on March 26, 2012 in Washington, DC. Today the high court, which has set aside six hours over three days, will hear arguments over the constitutionality President Barack Obama's Patient Protection and Affordable Care Act.

(Photo by Mark Wilson/Getty Images)

Supporters of the Affordable Care Act celebrate after the Supreme Court up held the law in the 6-3 vote at the Supreme Court in Washington June 25, 2015. The U.S. Supreme Court on Thursday upheld the nationwide availability of tax subsidies that are crucial to the implementation of President Barack Obama's signature healthcare law, handing a major victory to the president.

(REUTERS/Joshua Roberts)

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"There's a great deal of regulation that is either expressly required by legislation or is necessary to make the legislation work," he said.

Consumer groups and environmentalists slammed the push to peel back regulations, arguing that it would block important protections for the public.

Major regulations are typically reviewed by the White House's Office of Management and Budget (OMB) before they are issued. That review will continue under this new measure, but agencies will also have to identify what two regulations will be repealed to offset the costs of any new rule.

Harvard Law School Professor Jody Freeman said the new order was "entirely unnecessary," given similar cost-benefit regulatory directives made by past presidents and existing agency processes for reviewing older rules to make sure they are still needed.

"Even it is fairly toothless in the end, it will be a weapon that OMB can use to harass agencies and slow regulation," Freeman said.

The new order does not require that the repeal of the two regulations be done simultaneously with the release of additional rules.

"This vests tremendous power and responsibility in the OMB director to ensure the president's direction in how we manage this across the government," a White House official told reporters ahead of the signing of the order.

Certain categories of regulations will be exempt from this new policy, including those dealing with the military and national security. The OMB director will also have the ability to waive this policy in certain instances.

Trump has tapped U.S. Representative Mick Mulvaney of South Carolina to lead the OMB.

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