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Trump admin announces intention to identify and fix state laws that hurt the national economy

The Trump administration announced on Friday its intention to identify and fix state laws that negatively affect the national economy.

The project will be undertaken by the Department of Justice (DOJ) in conjunction with the National Economic Council (NEC).

The DOJ published a press release explaining that the project will focus on identifying state laws that “significantly and adversely affect the national economic or interstate economic activity.”

After the state laws are identified, the DOJ and NEC will then “solicit solutions to address such effects.”

This effort is necessary, the press release argues, because “[a]s President [Donald] Trump has also recognized, in Executive Order 14260, [s]tate-level practices can drive up nationwide costs and undermine American safety and ‘Federalism by projecting the regulatory preferences of a few States into all States.’”

As an example of a bad state law, the press release cites California, which the DOJ was forced to sue last month over “laws that impose costly requirements on the production of eggs and poultry products, raising prices for American consumers in and outside of California.”

There are other examples as well that aren’t cited in the press release.

For instance, Democrat-run states often have strict zoning laws and land-use restrictions, especially in metro areas. These policies limit housing development by boosting property values for some but driving up overall costs and contributing to homelessness and affordability crises.

Blue states such as California are also known for relying on aggressive environmental standards (air quality, emissions, energy use, etc.), which add significant costs for manufacturers and agricultural producers.

These environmental policies sometimes create barriers for outside producers (e.g., requirements on eggs and poultry) that further raise consumer prices and create legal conflict with other states.

And finally, many blue states boast rigorous labor protections, higher minimum wages, and expansive benefits requirements. Though ostensibly intended to “protect workers,” these policies raise operating costs for businesses and can therefore discourage hiring or expansion.

Going forward, the public is now “invited” to offer their input on the DOJ and NEC’s effort.

The two agencies are specifically looking for comments on the following four topics:

  • “Which State laws significantly burden commerce in other States or between States, thus raising costs unnecessarily and harming markets nationwide.”
  • “Whether the State laws identified may be preempted by existing federal authority and, if so, what authority.”
  • “Whether there may be federal legislative or regulatory means for addressing the State laws or regulations identified or the burdens they cause.”
  • “Which federal agency has the subject-matter expertise to address concerns lawfully within the federal government’s authority.”

Responding to the administration’s announcement, a number of folks expressed excitement over the plan.

Look:

All this comes a couple of months after the DOJ launched a separate review “of restrictive firearms-related laws in California and other states.”

“This Department of Justice will not stand idly by while States and localities infringe on the Second Amendment rights of ordinary, law-abiding Americans,” Attorney General Pam Bondi said at the time.

“The Second Amendment is not a second-class right, and under my watch, the Department will actively enforce the Second Amendment just like it actively enforces other fundamental constitutional rights,” she added.

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Vivek Saxena
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