Reining in the Administrative State: Regulatory and Administrative Law Reform

Education and Workforce MarkupsHouse Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust · February 11, 2025 · 119th Congress
The House Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust held this hearing to examine proposals for reforming federal regulatory and administrative law, including bills like the REINS Act, and to hear testimony from entrepreneurs and legal scholars on the costs of regulatory accumulation. Begins at ▶ 0:19:52
Transcript
Highlights

Title

House Judiciary Panel Examines Federal Regulatory Reform Proposals

Purpose

The House Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust held this hearing to examine proposals for reforming federal regulatory and administrative law, including bills like the REINS Act, and to hear testimony from entrepreneurs and legal scholars on the costs of regulatory accumulation. Democratic members largely used the hearing to raise concerns about Elon Musk's and DOGE's access to federal agency data and systems under the Trump administration, arguing this was a more urgent constitutional issue than regulatory reform. Begins at▶ 0:19:52

Who spoke

• Chairman (Rep. Scott Fitzgerald, R-WI)▶ 0:19:52: Opened by citing that unelected bureaucrats finalized over 3,000 rules in the last year of the Biden-Harris administration versus roughly 150 laws passed by Congress▶ 0:19:52, and argued regulations impose an estimated $2.1 trillion annual cost▶ 0:20:22; later questioned witnesses on due process and the REINS Act▶ 1:05:20.

• Ranking Member Rep. Jerry Nadler (D-NY)▶ 0:24:25: Argued the hearing was a distraction from Elon Musk's team accessing sensitive data at the IRS, OPM, and Department of Labor▶ 0:24:55, and warned of risks to FAA systems and air traffic control▶ 0:26:26.

• Chairman of Full Committee Rep. Jim Jordan (R-OH)▶ 0:32:00: Defended Musk's DOGE efforts as exposing wasteful spending, citing Mark Zuckerberg's letter admitting Biden administration pressure to censor content▶ 0:32:31; argued elected officials, not career bureaucrats, should run government▶ 0:33:01.

• Ranking Member Full Committee Rep. Jamie Raskin (D-MD)▶ 0:34:31: Said Musk has not filed required ethics disclosures despite receiving billions in federal contracts▶ 0:35:32, and cited 12 federal court injunctions against administration actions in three weeks▶ 0:36:32; argued Congress, not the executive, holds the "predominant" lawmaking power under Article 1▶ 0:39:34.

• Dr. Patrick McLaughlin, Hoover Institution▶ 0:44:38: Cited a study finding regulatory accumulation slowed GDP growth by 0.8 percentage points▶ 0:46:10, and that a 10% increase in regulations is linked to a 2.5% rise in poverty and 4% rise in income inequality▶ 0:46:40; noted British Columbia cut 40% of regulations over three years, boosting growth▶ 0:48:42.

• Mr. Patrick (Rick) Smith, CEO, Axon Enterprise▶ 0:49:42: Described Axon's $13 million acquisition of a body-camera competitor, after which the FTC demanded licensing of IP and a "blank check" to fund a rival▶ 0:52:13; said the FTC had won 100% of its in-house administrative cases over 20 years, prompting Axon to sue and win a unanimous 9-0 Supreme Court ruling in 2023▶ 0:53:44.

• Ms. Magatte Wade, Atlas Network▶ 0:54:45: Said overregulation in Africa causes poverty and even death, with people fleeing in fishing boats▶ 0:57:16; estimated 30-40% of Austin housing costs stem from excessive land-use regulation▶ 0:59:16, and later objected to Rep. Raskin's framing that the hearing should focus on Musk rather than regulation▶ 1:55:47.

• Professor Steve Vladeck, Georgetown Law▶ 0:59:46: Said the first three weeks of the administration saw an unprecedented assault on Congress's spending and appropriations authority▶ 1:00:47; warned that if the executive branch openly defied a Supreme Court order it would trigger a constitutional crisis with no precedent besides Lincoln's suspension of habeas corpus▶ 1:11:53.

• Rep. Harriet Hageman (R-WY)▶ 1:15:55: Cited CEI's "10,000 Commandments" report estimating $2.1 trillion in annual regulatory costs and $5,784 per household▶ 1:16:26; questioned Smith on FTC/SEC win-rate disparities before administrative law judges versus federal courts▶ 1:17:27.

• Rep. Kevin Kiley (R-CA)▶ 1:31:04: Asked McLaughlin about the REINS Act's requirement for congressional approval of rules costing $100 million or more▶ 1:31:34.

• Rep. Dave Min (D-CA)▶ 1:32:36: Argued regulations made air quality in Los Angeles much safer since the 1960s-70s▶ 1:33:06; asked Vladeck about civil servants' oath of loyalty to the Constitution▶ 1:34:36.

• Rep. Darrell Issa (R-CA)▶ 1:38:39: Questioned Smith on the FTC's near-100% administrative win rate versus under 50% in federal court▶ 1:40:11; asked all four witnesses whether Congress should be able to overturn any regulation by simple vote via bicameralism and presentment▶ 1:41:43.

• Rep. Jesús "Chuy" García (D-IL)▶ 1:43:43: Said the Trump administration illegally fired NLRB member Gwynne Wilcox without citing statutory grounds▶ 1:45:44; noted the CFPB recovered $17.5 billion for Americans since its creation before being shut down▶ 1:47:15.

• Rep. Derek Schmidt (R-KS)▶ 1:49:15: Cited a chart showing the Federal Register grew from about 10,000 pages in 1950 to nearly 200,000 pages today▶ 1:50:46; asked McLaughlin about extending the Congressional Review Act's look-back window beyond six months▶ 1:52:46.

• Chairman Jim Jordan (second round)▶ 1:54:47: Asked McLaughlin to define "opportunity cost" in the context of Smith's FTC litigation costs▶ 1:59:18.

Key moments

• Fitzgerald stated agencies finalized over 3,000 rules in 2024 versus about 150 laws passed by Congress, calling it "20 times more often"▶ 0:20:22.

• Smith detailed the FTC's demand that Axon license its IP to create a clone competitor and fund it with a "blank check," which Axon refused, leading to a Supreme Court case Axon won 9-0 in 2023▶ 0:52:43▶ 0:53:44.

• Smith said the FTC has won over 90% of its cases before its own administrative law judges, while the SEC wins only about 58% of cases in federal court but roughly 90% before its own ALJs▶ 1:17:27▶ 1:17:57.

• Wade and Raskin clashed directly: Wade said she was "deeply offended" by Raskin's suggestion the hearing should focus on Musk rather than regulation, telling him "make up your mind"▶ 0:55:45; later she said "it should be me" — the American people — who is the focus of concern, not the fight over Musk▶ 1:58:18.

• Raskin cited that the administration fired 17 inspectors general and Musk's team accessed data at 18 federal agencies▶ 1:21:29.

• Vladeck said the first three weeks of the administration saw "a more sustained assault by the president on this institution's constitutional prerogatives than we've seen in the first 250 years of our Republic"▶ 1:36:08.

• McLaughlin cited a study finding regulatory accumulation slowed U.S. GDP growth by roughly 0.8 percentage points annually▶ 0:46:10.

• Isa asked all four witnesses if Congress should be able to overturn any regulation by simple vote via bicameralism and presentment; three witnesses said yes outright, while Vladeck raised concerns about legislative vetoes before agreeing Congress can act through balanced presentment▶ 1:41:43▶ 1:42:43.

• García entered an article alleging Wade's "Prospera" economic zones lack transparency and accountability mechanisms, which Wade disputed, saying the zones were established by Honduras's own government▶ 1:44:44▶ 1:56:17.

• Smith said Axon spent approximately $20 million defending its acquisition of VieVu against the FTC, more than the $13 million acquisition price itself, and was never reimbursed for attorney's fees▶ 1:52:16▶ 1:52:46.

Metadata

CommitteeHouse Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust
Chamber / CongressHouse · 119th Congress
DateFebruary 11, 2025
TypeHearing
Witnesses
Mr. Patrick Smith — CEO, Axon Enterprise, Inc.
Ms. Magatte Wade — Senior Fellow for Initiatives for America, Atlas Network
Mr. Steve Vladeck — Agnes Williams Sesquicentennial Professor of Federal Courts, Georgetown Law
Dr. Patrick McLaughlin — Research Fellow, Hoover Institution
Videoyoutube
Transcript202 caption blocks · 17,130 words · 2:00:53 runtime
EventCongress.gov 117869