Donald Trump Signs Order Mandating 10-to-1 Regulation Reduction

Donald Trump signed the executive order Unleashing Prosperity Through Deregulation on January 31, 2025. The order establishes a 10-to-1 regulation reduction ratio, which mandates that the federal government eliminate 10 existing rules for every new regulation proposed.

The initiative aims to reduce the federal burden for businesses operating under frameworks such as HIPAA or CCPA. However, the shift may move regulatory complexity to the state level, specifically within California and New York.

This domestic deregulation coincides with a tightening global regulatory environment. The European Union is phasing in the EU AI Act through 2026, while the government of India is mandating data localization via the Digital Personal Data Protection Act. Additionally, the United Kingdom continues to experience regulatory divergence following Brexit. These opposing trends create a fragmented global compliance map, requiring businesses to adjust security reviews and vendor management to avoid legal and reputational risks in stricter international markets.