The Biden administration’s push for new regulations in areas such as independent contractors, credit card late fees, and climate disclosure requirements has been met with significant resistance from industry lobbying groups like the U.S. Chamber of Commerce. The Chamber, along with other groups, has filed lawsuits seeking to block these regulations, arguing that the administration has overstepped its authority. The Chamber expects to file at least 22 lawsuits against the Biden administration before the end of President Biden’s term, a significant increase from previous administrations.
The American Bankers Association has also stepped up its legal challenges against regulatory agencies under the Biden administration, which it sees as necessary when regulations are deemed to be outside the scope of their authority. The increased litigation is seen as a last resort by these organizations when they believe that agencies are overreaching with their regulations. The administration, on the other hand, sees these rules as beneficial for American workers and families, stating that they help increase wages, lower costs, save lives, and build a fairer economy.
The Biden administration’s approach to regulations has been characterized by a significant increase in new rules compared to the previous Trump administration. However, critics argue that the nature of Biden’s regulations, which they believe go beyond what Congress has authorized, is of more concern than the volume of regulations. The Chamber and other groups feel that the administration’s regulations are setting rules in areas that should be addressed by Congress, leading to the filing of numerous lawsuits challenging these regulations.
Despite a range of issues at play, the Chamber’s lawsuits against the Biden administration largely center on the claim that agencies are exceeding their authority in creating regulations. The Chamber has already sued a dozen agencies under the Biden administration, compared to just four under Obama, with focus on agencies seeking to set rules in areas they believe only Congress should address. These legal challenges reflect a broader concern about the direction of regulatory policy under the Biden administration.
The Biden administration contends that its focus with these regulations is on protecting consumers and saving them money in various ways, such as through wage increases, savings on credit card fees, and health benefits from environmental rules. The administration estimates significant benefits from these regulations, including boosting wages by $400 billion over the next decade through the FTC’s noncompete ban. Critics argue that the administration has not been appropriately following the rulemaking process or incorporating feedback from stakeholders in final regulations.
The uncertainty created by shifting regulations depending on the administration in power can have significant consequences for businesses, leading to compliance costs and potential disruptions to operations. Critics argue that regulations that go beyond what Congress has authorized can create additional challenges for businesses making investments. Despite the pushback from industry groups, the Biden administration remains committed to implementing regulations that it sees as benefiting American workers and families.
