Cost of Federal Regulation to the U.S. Economy

This study is a technical report conducted for the National Association of Manufacturers, focusing on the economic impact of federal regulations on U.S. businesses, particularly manufacturers. It aims to quantify the costs associated with regulatory compliance and analyze how these costs are distributed across different sectors and firm sizes. The report estimates that U.S. federal regulations cost approximately $3.079 trillion in 2022, representing about 12% of the U.S. GDP. It highlights that small businesses bear a disproportionate share of these costs, with small firms incurring regulatory costs of $14,700 per employee per year, compared to $12,200 for large firms. The report also discusses the methodology used for estimating these costs, including a survey of manufacturers and aggregation of government agency estimates. Additionally, it provides a historical context by comparing these findings to previous studies on regulatory costs, noting the challenges in accurately measuring the total economic burden of regulations.