The federal government has announced a Cabinet Directive on Regulatory Competitiveness and Red Tape Reduction, effective December 31, 2026. Departments developing federal regulations will be expected to offset each $1 of new regulatory burden costs by removing $2 in burden costs, consider competitiveness and review obsolete rules. This is a direction governing federal regulation-making, not a declaration that existing laws have already been repealed or that pending legislation has passed.
News brief
Federal Cabinet directive introduces $2-for-$1 regulatory burden rule
Ottawa has announced a Cabinet directive requiring federal regulators to remove $2 in regulatory burden costs for every $1 added. It takes effect December 31, 2026, replacing the 2018 directive.
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