Business regulation
Regulations are the detailed rules agencies write to carry out laws on safety, pollution, banking, privacy and more. Since 2025 the federal government has been working to cut rules, and Texas has created its own office to trim state regulations. The debate is over which rules protect people and which just add cost.
The basics
Congress passes laws, and federal agencies write detailed rules to carry them out, on things like workplace safety, pollution, banking and food safety. States and cities add their own rules, such as business licenses, permits and zoning.
On January 31, 2025, the President signed Executive Order 14192, which directs agencies to identify at least 10 existing regulations to repeal for each new one they propose1. It also required that the total cost of new rules finalized in fiscal year 2025 be well below zero once repealed rules are counted1.
Courts shape regulation too. On June 28, 2024, in Loper Bright Enterprises v. Raimondo, the Supreme Court overruled the Chevron doctrine, which had told judges to defer to an agency's reading of an unclear law2. Judges now must use their own judgment about what a law means2.
Congress can cancel new rules. Under the Congressional Review Act, if Congress passes a resolution of disapproval and it becomes law, the rule has no force or effect3.
Current debates include rules for banks and cryptocurrency, data privacy and big tech companies, energy and pollution, and whether the largest companies should face tougher antitrust enforcement.
Key terms
- Regulation
- A rule written by a government agency, with the force of law, to carry out a law passed by lawmakers.
- Chevron deference
- A court doctrine under which judges deferred to an agency's reasonable reading of an unclear law. The Supreme Court overruled it in 20242.
- Congressional Review Act
- A federal law that lets Congress overturn a new agency rule by passing a resolution of disapproval3.
- Antitrust
- Laws against monopolies and deals that unfairly limit competition. Breaking up a large company is the strongest antitrust remedy.
- Preemption
- When a higher level of government overrides the rules of a lower one, such as a state law overriding a city ordinance5.
In Texas
In April 2025, Texas created the Texas Regulatory Efficiency Office, a regulation-cutting office under the Governor, through Senate Bill 144. It was the first bill of the 2025 session to reach the Governor, and it passed with large majorities from both parties4.
Texas also limits city rules. House Bill 2127, in effect since September 1, 2023, lets people sue over local ordinances that conflict with state law in the areas it covers5. A district judge declared it unconstitutional in a case brought by the City of Houston, and the state appealed5. In July 2025, the Third Court of Appeals reversed that ruling and dismissed the cities' challenge, finding they lacked standing, so the law remains in effect6.
For Colleyville residents, many everyday rules, such as zoning, building permits and signs, are set by the city council, within limits set by the state.
How people see it
The strongest case for each view, in terms its supporters would recognize. We don't pick a side.
Cut regulations broadly
Supporters say the rulebook has grown so large that no business can know every rule, and compliance costs fall hardest on small firms. They argue competition and the courts protect consumers better than agencies do, and that cutting rules speeds up building, hiring and new ideas.
Cut red tape, keep core protections
Supporters say many rules are outdated, duplicated or slow down permits without making anyone safer. They want to clear those out while keeping basic protections for clean air and water, workplace safety and against fraud.
The current level is about right
Supporters say today's rules reflect decades of lessons learned, and constant swings between cutting and adding rules leave businesses unsure what to plan for. They prefer steady, case-by-case updates.
Stronger rules on big corporations, banks and tech
Supporters say the largest banks, tech platforms and corporations have enough power to set prices, collect personal data and avoid accountability. Tougher rules and enforcement, they argue, protect consumers and give smaller competitors a fair shot.
Much stronger rules, including breaking up the biggest companies
Supporters say a few giant firms dominate key markets and treat fines as a cost of doing business. Breaking them up, as the government has done with monopolies in the past, would restore competition, lower prices and limit concentrated corporate power.
Who decides
- U.S. Congress: Writes the laws agencies enforce and can overturn new rules.
- President and federal agencies: Agencies write and enforce rules; the President directs agency priorities through executive orders.
- Federal courts: Decide whether rules follow the law and the Constitution.
- Texas Legislature and Governor: Set state rules and limits on city rules; the Governor oversees the Texas Regulatory Efficiency Office.
- Colleyville City Council: Sets local zoning, permit and building rules within state law.
Questions to ask a candidate
- Name one federal or state regulation you would repeal, and one you would keep or strengthen.
- Should Congress have to approve major new rules before they take effect?
- Should large tech companies face new rules on data privacy or competition?
- Should the state limit what rules Texas cities can pass?
Last reviewed 2026-09-26. Spotted something wrong? Every claim links to its source so you can check it yourself.
Sources
- Executive Order 14192: Unleashing Prosperity Through DeregulationU.S. Government Publishing Office
- Loper Bright Enterprises v. Raimondo, 603 U.S. (2024), opinionSupreme Court of the United States
- Congressional Review ActU.S. Government Accountability Office
- Abbott signs first bill of session into law, creating a Texas DOGEThe Texas Tribune
- Texas Law Enabling Citizens to Sue Over Local Ordinances Pre-Empted by State Laws Takes EffectOffice of the Texas Attorney General
- Appeals court upholds Texas 'Death Star' law limiting cities' enforcement of local ordinancesKUT (Austin's NPR station)