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Forbes
3 days ago
- Business
- Forbes
How The Big Beautiful Budget Bill Can Deliver Decisive Deregulation
Media coverage of the House-passed One Big Beautiful Bill (BBB; see committee report) naturally focuses on the spending. And that makes sense, with COVID-level deficits of $2 trillion on $7 trillion in outlays now entrenched. Action now moves to the Senate. But regulatory compliance costs and suppressed productivity can affect the economy and our lives every bit as much as on-budget spending. So over the past decade we've seen House budget resolutions explicitly address regulation, as in this year's 'Policy Statement on Government Deregulation.' This elevation of regulatory streamlining as a policy priority in part shaped BBB reconciliation negotiations in anticipation of simple-majority passage. This year, the House Judiciary Committee's component included four important federal administrative state reforms—not just for rules, but also for more slippery guidance documents and policy statements. Unfortunately, these were yanked at the last moment. Senate negotiations offer an opportunity to revive them. Recaps of deregulatory provisions follow: The proposed REINS Act (Regulations from the Executive In Need of Scrutiny) has long called for congressional affirmation of costly rules, building upon the resolution of disapproval process contained in the Congressional Review Act (CRA). The BBB would have borrowed from REINS to require legislative approval for any 'major rule that increases revenue'—as opposed to all major rules—to comply with parliamentary requirements for spending legislation. These presumably include the likes of user fees for services, leasing fees, licensing fees, or penalties collected by the federal government. Even 'REINS-Lite,' though, wound up regarded as a parliamentary fatality. Besides, there was arguably potential for backfiring here, such as perverse use of 'REINS-Lite's' deregulation-intent to block deregulation. For example, an Interior Department rule reducing permitting fees for mining and accelerating project approvals could trigger more taxable economic activity, increasing federal revenue. My Competitive Enterprise Institute colleague James Broughel suggested narrowing the language to 'major rules that 'directly' increase revenue, such as through a 'new fee, tax, levy, or surcharge,' Parliamentary hurdles on the Senate side for non-fiscal measures are high, with reconciliation provisions limited to those directly affecting the federal budget. Deregulatory provisions were, and remain, vulnerable in this context until changes happen. Celebratory proclamations about REINS-Lite continued right up to the bitter end, but only Amelia Davidson at Politicopicked up on the fact these were actually withdrawn from the final BBB. Also lost were enhancements to the CRA-required reports to both houses of Congress and to the Government Accountability Office (GAO), covering whether rules are major or not, job effects, But here's a bright side. While the specific reform parts are gone, the BBB now infuses OMB with $100 million through 2028. This may work out for the best, as the amended language under 'Use of Funds' specifies that the Director of OMB shall 'use amounts made available' to 'pay expenses associated with improving regulatory processes and analyzing and reviewing rules issued by a covered agency.' 'Covered agency' refers to the Departments of Education, Energy, Health and Human Services, Homeland Security, Justice, the Consumer Financial Protection Bureau, and the Environmental Protection and indirect cost assessments, and affirmation of constitutional authority. But even the existing, less-detailed reports are nearly impossible to track. That parallels the problem with guidance documents—there's no centralized, publicly accessible repository for easy access. Congress has used the CRA to strike down fewer than 30 rules since its 1996 enactment, nullifying one at a time. The BBB included provisions to ease the bundling of 'midnight rules' for CRA joint resolutions of disapproval—particularly useful during changes in presidential administrations when the CRA's limited window of opportunity applies. The BBB also contained provisions requiring agencies to submit their existing body of rules over a five-year period for congressional approval—without which unapproved rules would expire. Another provision called for the GAO to produce an aggregate estimate of regulatory costs. The GAO may not be the best source for such an estimate, though, given some bad blood between it and the GOP; but the sentiment is right. For years the Regulatory Right-to-Know Act has required aggregate cost assessments, but is ignored. Concerns that the Senate parliamentarian would reject regulatory provisions led to all the forgoing getting stricken by amendment at the last moment. With the simple directive, "Page 533, strike line 12 and all that follows through line 16 on page 542," all the regulatory reform provisions were deleted and replaced with a scaled-down 'Deregulatory Initiative' increasing Office of Management and Budget (OMB) funding. Now, the job is to seek acceptably drafted regulatory reforms on the Senate side. 'I'm going to fight like heck to get it in there' before the BBB goes to Donald Trump for signature, Sen. Mike Lee said. Some regrouping is necessary anyway: the original House language would have left the OMB hopelessly underfunded to carry out all the foregoing actions. OMB was slated for just $10 million through 2034, which never made sense. But here's a bright side. While the specific reform parts are gone, the BBB now infuses OMB with $100 million through 2028. This may work out for the best, as the amended language under 'Use of Funds' specifies that the Director of OMB shall 'use amounts made available' to 'pay expenses associated with improving regulatory processes and analyzing and reviewing rules issued by a covered agency.' 'Covered agency," refers to the Departments of Education, Energy, Health and Human Services, Homeland Security, Justice and the Consumer Financial Protection Bureau and Environmental Protection Agency. It is unfortunate that the public may not yet seeing detailed reporting, congressional approvals and sunsetting mechanisms for rules to which it's entitled. And a strike against the new language is the omission of bodies like the Department of Defense and Department of Transportation, as well as the broad exclusion of interpretive rules, policy statements, and guidance documents that the earlier BBB version addressed. Still, there's wide discretion and latitude for OMB to review and streamline with this generous fiscal endowment. Numerous Trump executive orders already target overregulation and beef up OMB—even more so than they empower the Department of Government Efficiency (DOGE). No matter what, a battle in the Senate to restore and build upon these innovations is warranted and expected, whether it happens in a Big Beautiful way or in some other incarnation this summer. It's been over two decades since major regulatory reforms were enacted—that's far too long. Where there now-discarded provisions in the BBB would have modified the CRA, legislation like a regulatory cost budget with bipartisan pedigree might be a better fit. The 'Renewing Efficiency in Government by Budgeting' (REG Budget) bill, for instance, would modify the Unfunded Mandates Reform Act (UMRA), which falls under shared House Budget Committee jurisdiction. Reforms in that vein might be a stronger match for future Budget Committee engagement to secure parliamentary approval for treating regulatory effects on fiscal budgetary matters with more precision. And those bipartisan roots run deep. Before President Jimmy Carter's 1980 Economic Report of the President invoked regulatory budgeting, Democratic Sen. Lloyd Bentsen of Texas—later Treasury Secretary under Clinton—proposed an 'annual cap on the compliance costs each agency could impose on the private sector' to 'make it possible to coordinate the regulatory and fiscal budgets.' Given the fusion of spending and regulation in governance, regulations influence macroeconomic variables, including government revenue, and merit explicit incorporation into reconciliation in a replacement to the governing Byrd Rule. Some basic cost-benefit machinery for a regulatory budget already exists within the same OMB boosted by the BBB. President Trump implemented a version of a regulatory budget via executive order during his first term with a 'one-in, two-out' framework, now boosted to ten-for-one. Cutting spending and regulation both require congressional action for permanence. Senate reconciliation negotiations still present an opportunity identify and target the heaviest burdens on society—be they fiscal or regulatory.
Euronews
19-05-2025
- Health
- Euronews
Pandemic treaty, budget cuts to top agenda at major WHO meeting
Massive budget cuts and an agreement to combat COVID-level health threats will be at the forefront of minds this week in Geneva as representatives from nearly every country on Earth meet for the World Health Assembly. The assembly, convened each May, sets the World Health Organization's (WHO) policies and budget for the upcoming year. This year's theme is 'One World for Health' – but its spirit of camaraderie may not fully capture the mood in Geneva given that 2025 has brought deep cuts to global health programmes from major donors such as the United States, the United Kingdom, France, and the Netherlands. With financial pressure looming large over the nine-day assembly, countries will tackle issues as wide-ranging as antibiotic-resistant superbugs, environmental toxins, polio, nuclear war, infant formula advertising, and the recruitment of health workers from abroad. But a few key priorities will take centre stage. Here's what to watch out for at the 2025 World Health Assembly. The WHO has proposed shaving its 2026-2027 budget to $4.2 billion (€3.7 billion), down from the $5.3 billion (€4.7 billion) it had originally planned on. Some countries have suggested even deeper cuts, WHO chief Tedros Adhanom Ghebreyesus said. The organisation is also short by $600 million (€527.6 billion) for 2025, WHO officials told journalists ahead of the assembly, prompting cuts to agency staff, departments, and regional offices. The agency is scaling down its work to focus on only the 'most urgent global health needs,' said Dr Catharina Boehme, WHO's external relations chief. But the WHO isn't just tightening its belt. It is also asking countries to approve a 20 per cent increase in their annual dues, after they green-lit an initial 20 per cent increase in 2023. It's part of the organisation's efforts to become less dependent on voluntary funding from a few big donors. Member states agreed last month on a treaty to boost preparedness and responses to future pandemics, and they're expected to adopt the landmark agreement on Tuesday morning. The treaty would require countries to improve disease surveillance, share diagnostics, medicines, and vaccines more quickly, and take steps to keep viruses from spreading from animals to people – but there are still a few sticking points. One issue that has yet to be resolved is the creation of a new pathogen access and benefit sharing (PABS) system, in which countries would share pathogen samples and data with drugmakers in return for access to vaccines and medicines. After they adopt the pandemic treaty, member states will have a year to wrap up negotiations on PABS. The treaty will go into force once that issue has been agreed upon. In September, countries will attend a high-level meeting of the United Nations focused on noncommunicable diseases and mental health. This week's assembly is an opportunity for delegates to make progress toward an expected political commitment to combat chronic health problems, which kill more than 43 million people per year. During the World Health Assembly itself, member states will consider resolutions on kidney disease, cervical cancer, blindness and other forms of vision impairment, and hearing loss. 'We're not sure how much movement will be made, though [we] remain optimistic,' Jonny Barty, chief executive of the health and education consultancy Acasus, told Euronews Health. Last year, member states instructed the WHO to come up with a plan to address climate change as a health issue. They'll now vote on the proposal, which calls for countries to curb manufacturing emissions and incorporate health into their climate commitments under the Paris Agreement. But climate groups aren't entirely happy with the latest available draft. The non-profit Global Climate and Health Alliance, for example, wanted stronger measures tackling the role of fossil fuels in climate change. 'What we need governments and the public to understand is that people's health will ultimately pay the price for inaction,' Rosie Tasker, the group's clean air liaison, told Euronews Health. Countries will decide whether to extend a global action plan on dementia through to 2031. The strategy, which first passed in 2016 and is set to expire this year, set goals that countries have not met on dementia, which affects about 57 million people worldwide. For example, the WHO wanted 75 per cent of its member states to develop national plans to address dementia, but by 2024, only 26 per cent – 50 countries – had met that target. Gaps also remain in access to dementia diagnosis, treatment, and caregiving, the organisation said. Nicoletta Dentico, who leads the global health programme for the Society for International Development (SID), told Euronews Health that while member states are generally expected to approve the measures they'll review this week, whether they lead to anything tangible 'depends on the money… because of funding cuts'. Meanwhile, Barty said countries would benefit from clear-cut strategies to help them address key issues like vaccination, maternal health, climate change, and primary care. 'What matters isn't what's pledged this week – but what's still being delivered six months from now,' Barty said.
Yahoo
16-05-2025
- Business
- Yahoo
Container ship owners swamped as US-China trade detente revives demand
By Lisa Baertlein, Farah Master and Casey Hall LOS ANGELES/HONG KONG (Reuters) -Container ship bookings for China-to-U.S. cargo have surged since the countries declared a 90-day truce on punitive tit-for-tat tariffs last weekend, operators said, spawning traffic jams at Chinese ports and factories that could take weeks to clear. U.S. importers of sneakers and sofas to construction supplies and auto parts are racing to get goods in before the deadline resets tariffs again, setting the stage for disruptions that recall the global transport quagmire during the COVID-19 pandemic. The cargo surge at major trade gateways like Shenzhen's Yantian Port, which handles more than a quarter of China's exports to the United States, has ship owners scrambling to coordinate berths and adjust vessel schedules. "The demand is so high that we can only serve customers who have made long-term contracts with us," a spokesperson for German container ship operator Hapag-Lloyd told Reuters. "We have hardly enough space for spontaneous bookings." Container-tracking software provider Vizion said average bookings for the seven days ended on Wednesday soared 277% to 21,530 20-foot equivalent units from the 5,709 TEU average for the week ended May 5. Owners of factories that make toys to holiday decor told Reuters they are booking previously frozen cargo headed to U.S. stores, including Walmart. Lalo, for example, which sells its baby furniture online and through retailers like Target and is among the companies that gave factories the green light to move their finished orders. "We had hundreds of thousands of units waiting to ship," said Lalo co-founder Michael Weider. "These products can now get on the water." "Everybody is very busy from my company, at my friend's companies," said Richard Lee, CEO of NCL Logistics, in China's southern metropolis of Shenzhen. "They are preparing a lot of cargo, a lot of products, to be shipped immediately from China to the U.S." SECOND TSUNAMI? The shipping surge will translate into a rush of arrivals at U.S. West Coast ports in the coming weeks. Still, industry experts, including the executive director of the Port of Los Angeles - the busiest U.S. seaport and No. 1 for ocean shipments from China, do not foresee a COVID-level tsunami of cargo. Rather, they project a large, but manageable wave. On Thursday, the off-contract spot rate from Shanghai to Los Angeles shot up 16% from the prior week to $3,136 per 40-foot container, according to data from maritime consultancy Drewry. That is less than half than in April 2024, but could jump sharply on June 1 to about $6,000 per container if ship owners push through rate increases. In the early days of the pandemic, as now, cargo demand spikes overwhelmed factories and container ships, kinking supply chains. Shipping and retail experts said 90 days is not enough time for most factories to fill new orders. Fewer slots are available on cargo ships because vessel owners had been culling China-to-U.S. voyages and schedules. Now, ocean carriers are "cancelling cancellations" of sailings, Drewry said. Demand, however, is markedly different this time. Trump's second-term tariffs have weakened U.S. retail sales, homebuilding and manufacturing - key drivers of container shipments. Moreover, many U.S. companies are sitting on inventory accumulated before Trump imposed tariffs on China and other countries. And nobody knows what import duties will be when the 90-day deadline expires in August. The Trump administration confirmed to Reuters that the U.S. rate would reset to 54%, assuming no agreement is reached by the deadline. HIGH ANXIETY Many retailers are prioritizing which products to order and ship, said Jessica Dankert, vice president of supply chain for the Retail Industry Leaders Association trade group, whose members include Home Depot, Gap and Dollar General. "It's still 30% at the end of the day," said Jamie Salter, CEO of Authentic Brands Group, referring to tariffs on China. Authentic Brands owns and licenses clothing brands including Reebok, Champion, and Forever 21. Some large suppliers to Detroit's Big Three automakers told Reuters that on customers' requests, they are flying in parts from China and stockpiling them. Others declined to add to inventories, saying they lacked the space and funds to do so. A Halloween goods exporter from the city of Yiwu in China, who gave her English name, Cecilia, said tariff increases have cut total orders in half this year and warned that prospective buyers are running out of time. "If you order now, you will have an anxious wait to see if it will be too late," she said. Jimmy Zollo, CEO at Joe and Bella, sells Chinese-made clothing for adults who have trouble dressing themselves due to arthritis, dementia or being in a wheelchair. He placed a new order with his supplier even though the 90-day window could close before he can take delivery. "We're hopeful that a new trade agreement is implemented, and the lowered tariffs do not expire," Zollo said.
Yahoo
16-05-2025
- Business
- Yahoo
Container ship owners swamped as US-China trade detente revives demand
By Lisa Baertlein, Farah Master and Casey Hall LOS ANGELES/HONG KONG (Reuters) -Container ship bookings for China-to-U.S. cargo have surged since the countries declared a 90-day truce on punitive tit-for-tat tariffs last weekend, operators said, spawning traffic jams at Chinese ports and factories that could take weeks to clear. U.S. importers of sneakers and sofas to construction supplies and auto parts are racing to get goods in before the deadline resets tariffs again, setting the stage for disruptions that recall the global transport quagmire during the COVID-19 pandemic. The cargo surge at major trade gateways like Shenzhen's Yantian Port, which handles more than a quarter of China's exports to the United States, has ship owners scrambling to coordinate berths and adjust vessel schedules. "The demand is so high that we can only serve customers who have made long-term contracts with us," a spokesperson for German container ship operator Hapag-Lloyd told Reuters. "We have hardly enough space for spontaneous bookings." Container-tracking software provider Vizion said average bookings for the seven days ended on Wednesday soared 277% to 21,530 20-foot equivalent units from the 5,709 TEU average for the week ended May 5. Owners of factories that make toys to holiday decor told Reuters they are booking previously frozen cargo headed to U.S. stores, including Walmart. Lalo, for example, which sells its baby furniture online and through retailers like Target and is among the companies that gave factories the green light to move their finished orders. "We had hundreds of thousands of units waiting to ship," said Lalo co-founder Michael Weider. "These products can now get on the water." "Everybody is very busy from my company, at my friend's companies," said Richard Lee, CEO of NCL Logistics, in China's southern metropolis of Shenzhen. "They are preparing a lot of cargo, a lot of products, to be shipped immediately from China to the U.S." SECOND TSUNAMI? The shipping surge will translate into a rush of arrivals at U.S. West Coast ports in the coming weeks. Still, industry experts, including the executive director of the Port of Los Angeles - the busiest U.S. seaport and No. 1 for ocean shipments from China, do not foresee a COVID-level tsunami of cargo. Rather, they project a large, but manageable wave. On Thursday, the off-contract spot rate from Shanghai to Los Angeles shot up 16% from the prior week to $3,136 per 40-foot container, according to data from maritime consultancy Drewry. That is less than half than in April 2024, but could jump sharply on June 1 to about $6,000 per container if ship owners push through rate increases. In the early days of the pandemic, as now, cargo demand spikes overwhelmed factories and container ships, kinking supply chains. Shipping and retail experts said 90 days is not enough time for most factories to fill new orders. Fewer slots are available on cargo ships because vessel owners had been culling China-to-U.S. voyages and schedules. Now, ocean carriers are "cancelling cancellations" of sailings, Drewry said. Demand, however, is markedly different this time. Trump's second-term tariffs have weakened U.S. retail sales, homebuilding and manufacturing - key drivers of container shipments. Moreover, many U.S. companies are sitting on inventory accumulated before Trump imposed tariffs on China and other countries. And nobody knows what import duties will be when the 90-day deadline expires in August. The Trump administration confirmed to Reuters that the U.S. rate would reset to 54%, assuming no agreement is reached by the deadline. HIGH ANXIETY Many retailers are prioritizing which products to order and ship, said Jessica Dankert, vice president of supply chain for the Retail Industry Leaders Association trade group, whose members include Home Depot, Gap and Dollar General. "It's still 30% at the end of the day," said Jamie Salter, CEO of Authentic Brands Group, referring to tariffs on China. Authentic Brands owns and licenses clothing brands including Reebok, Champion, and Forever 21. Some large suppliers to Detroit's Big Three automakers told Reuters that on customers' requests, they are flying in parts from China and stockpiling them. Others declined to add to inventories, saying they lacked the space and funds to do so. A Halloween goods exporter from the city of Yiwu in China, who gave her English name, Cecilia, said tariff increases have cut total orders in half this year and warned that prospective buyers are running out of time. "If you order now, you will have an anxious wait to see if it will be too late," she said. Jimmy Zollo, CEO at Joe and Bella, sells Chinese-made clothing for adults who have trouble dressing themselves due to arthritis, dementia or being in a wheelchair. He placed a new order with his supplier even though the 90-day window could close before he can take delivery. "We're hopeful that a new trade agreement is implemented, and the lowered tariffs do not expire," Zollo said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBC
18-03-2025
- Business
- CBC
Restaurant and hotel group calls for reinstatement of Ontario staycation tax credit
At a time when many want to escape the cold, hotels and restaurants hope you'll consider an alternative option: a staycation. Some businesses are urging the Ontario government to reinstate the staycation tax credit to support local tourism as cross-border trips to the U.S. reach COVID-level lows. CBC's Talia Ricci reports.
