President Donald Trump has announced that for every new regulation implemented, ten older regulations will be repealed.

This directive is outlined in a recent executive order titled “Unleashing Prosperity Through Deregulation,” which was signed on Friday. Trump, known for his business background, often argues that excessive government regulations hinder economic growth.

According to the new order, federal agencies must revoke “at least 10 existing rules, regulations, or guidance documents” for each new rule they introduce.

The order emphasizes that “it is the policy of my administration to significantly reduce the private costs associated with complying with federal regulations to protect America’s economic growth and national security.”

Additionally, agencies are instructed to ensure that the financial impact of any new regulations in fiscal 2025 is “significantly less than zero.”

It remains uncertain how federal agencies will determine which ten regulations to remove or how the overall costs will be assessed.

In 2017, Trump implemented a similar mandate requiring the elimination of two regulations for each new one introduced. However, this policy was rescinded by former President Joe Biden on his first day in office in 2021.

The executive order also tasks the Office of Management and Budget (OMB) with issuing related guidance.

On Thursday, the Senate Budget Committee moved to advance Russell Vought, Trump’s nominee to lead the OMB, for a final vote in the Senate. The vote saw a boycott from committee Democrats. Vought is known for his role in creating the controversial Project 2025 agenda for a Republican administration.