With inflation at its highest point in 40 years and businesses struggling to fill 10.1 million jobs openings, the Biden Administration is doing everything it can to increase red tape and erode the value of hardworking taxpayer dollars. Recently, the Administration made building new infrastructure more cumbersome and expensive.
Increased regulatory hurdles will mean slower supply chains, longer commutes for workers, and higher energy costs for American families. The Biden Administration has also created 436 new regulatory actions, costing over $309 billion, and adding 193 million hours of additional paperwork, causing harm to small businesses and, ultimately, American workers. Unfortunately, there appears to be no end in sight to the federal regulatory onslaught — and these increased regulatory costs are particularly painful in a high-inflation environment where small businesses and workers have reduced purchasing power.
But there is hope beyond the Washington D.C., beltway. Many governors and their legislative partners — often in bipartisan fashion — are finding ways to give relief to small businesses and workers without fanning inflationary flames. More than a dozen governors of both parties have prioritized workforce freedom, red tape reduction, and streamlining state and local regulations. Here are some examples:
â— Ohio will begin reducing 30% of its regulations thanks to Ohio legislators from both parties. This effort will build on Gov. Mike Dewine’s “Common Sense Initiative” led by Lt. Governor Jon Husted that uses artificial intelligence to identify regulatory inefficiencies.
â— In Virginia, Gov. Glen Youngkin has prioritized red tape reduction since his first day in office when he signed a directive to cut excessive regulations by 25%. This work builds on a 2018 bipartisan regulatory reform project to remove burdensome and unnecessary regulations.
â— Idaho, known as the least regulated state, has cut or simplified 95% of its administrative code since 2019. Now, by using a zero-based regulation initiative, Gov. Brad Little and the state legislature are finding ways to make the state’s regulatory environment even more responsive to its citizens by requiring regular cost-benefit analysis for each regulation.
Removing unnecessary occupational licensing barriers offers a prime opportunity for red tape reduction at the state level. Occupational licensing is a government credential required before someone can practice their trade in a state. Unnecessary occupational licensing hurts American consumers by creating worker shortages and raising costs. It particularly hurts lower income and minority Americans by making it harder to work and hire for their business.
Healthcare professions are particularly riddled with regulations that increase costs and put red tape between patients and their doctors. While some regulations are sensible for health and safety, too often, regulations add costs and little value. With an aging population, critical staffing shortages are reported at more than 1 in 5 U.S. hospitals and 3 in 5 surveyed doctors reported at least one symptom of burnout. We need more flexibility for healthcare workers to transition through state licensing requirements to deliver more care via telehealth and other means without red tape. Right now, nurse practitioners, physical therapists, and occupational therapists are some of the fastest growing occupations. Recognizing these facts, Colorado is reducing occupational licensing costs for health care workers, and 39 states and territories have joined the nurse licensure compact. All states should make it easier for health care professionals to work and provide needed care.
There are 18 states with universal licensing recognition laws of various forms that allow a licensed practitioner in one state to have their credentials honored in other states, and soon three more states could join that club (Louisiana, Nebraska, and Ohio). Colorado’s new Red Tape Reduction Act law, signed by Gov. Jared Polis, will improve on the state’s existing universal recognition law. The Colorado law — passed with bipartisan support — will let workers more easily obtain a license to work in the state. In North Dakota, Gov. Doug Burgum wants his state to have the “most open and transferable occupational licensing system in the nation.” In New Hampshire, Gov. Chris Sununu fast-tracked nurses’ licenses by getting bureaucrats out of the way and the legislature made it easier to get mental health professionals certified to practice in the state, especially through telehealth. In Arizona, Gov. Doug Ducey extended temporary licensure of health care workers to fill a worker shortage. In Florida, Gov. Ron DeSantis signed legislation easing the process for more mental health counselors to practice in Florida. And the governors of Mississippi, South Dakota, and Tennessee have led bipartisan efforts to support licensing reforms.
When President Trump announced the Governors’ Initiative on Regulatory Innovation in 2019, he envisioned the laboratories of innovation cutting needless red tape out of our lives, much like he aimed to do at the federal level. That process has continued at the state level despite the Biden Administration’s robust red tape production at the federal level. It is encouraging to see at least a dozen governors and legislators — of both parties — from across the Nation continue to prioritize important regulatory reforms. While Washington fails to respond to skyrocketing inflation, state leaders are empowering small businesses and workers by removing red tape. There’s hope as states are putting people over paperwork.
Linda McMahon is Chair of the Board of the America First Policy Institute and Chair of AFPI’s Center for the American Worker. She previously served in the Cabinet of President Donald J. Trump while Administrator of the Small Business Administration.
Doug Hoelscher serves as chief operating officer for the America First Policy Institute and previously served as assistant to the president for Intergovernmental Affairs in the Trump White House.