Texas and Virginia Lead the Way on Cutting Red Tape: Jonathan Williams on American Radio Journal
"Washington still faces the much larger task of unwinding decades of accumulated regulation, but the states are demonstrating that reform is both possible and practical."
In Washington, it often is said that there is a fourth branch of government. The Constitution, of course, establishes only three: Congress, the President, and the Judiciary. Each derives its authority from Articles One, Two, and Three, respectively, in the Constitution, but ultimately from the consent of the governed.
Yet, over many decades, administrations and legislatures of both parties have allowed another center of power to emerge: the administrative state. Unlike the constitutional branches, this one is staffed largely by unelected officials who exercise broad authority while remaining far removed from direct political accountability. Regulatory agencies have produced an ever-expanding body of rules governing not only how government functions but increasingly how businesses operate and how Americans live their daily lives.
Individually, many regulations appear modest, but collectively they impose enormous economic costs and gradually shift decision-making away from elected representatives.
This phenomenon is not confined to Washington, D.C. State governments have built their own administrative apparatuses, often mirroring the federal model. But states have another distinction: as Justice Louis Brandeis observed, they are the laboratories of democracy. While some have expanded regulation, others are testing ways to restore legislative authority, reduce unnecessary bureaucracy, and place greater trust in citizens, entrepreneurs, and markets.
One of the most promising reforms is the Regulations from the Executive in Need of Scrutiny, or REINS Act. Its premise is straightforward: major regulatory decisions should be made by those who are accountable to voters. Under a REINS framework, regulations expected to impose costs above a specified threshold—for example, $1 million—cannot take effect unless approved by the legislative branch. This restores responsibility to elected officials while giving lawmakers the opportunity to reject rules whose costs outweigh their benefits.
More than a dozen states have now enacted REINS-style reforms, and the number doubled during 2025 alone, incredibly.
Another reform addresses the accumulation of regulations already on the books. While REINS helps prevent unnecessary growth, systematic regulatory review tackles the backlog that has built up over decades. Agencies examine existing regulations, eliminate outdated or duplicative requirements, simplify compliance, reduce red tape, and accelerate permitting and approval processes. The objective is not deregulation for its own sake, but regulation that justifies its existence.
Virginia offers one of the strongest examples. Under former Governor Glenn Youngkin, the Virginia Office of Regulatory Management launched a comprehensive review of state regulations, using artificial intelligence to identify unnecessary complexity and obsolete requirements. Within just a few years, the office estimated savings of roughly $1.2 billion for Virginians.
The reforms also addressed another chronic problem: bureaucratic complexity. Virginia developed an online portal allowing businesses and individuals to track permit applications throughout the approval process. Instead of submitting paperwork into what often felt like a bureaucratic black hole, applicants can now monitor progress and identify delays. Transparency did more than inform the public; it created incentives for agencies to improve their performance because that performance was now visible.
Regulatory reform extended to building codes as well, with changes estimated to reduce the cost of constructing a new home by approximately $24,000.
Inspired by this Virginia success, Texas has established the Texas Regulatory Efficiency Office, or TREO. The office has moved quickly. As Governor Greg Abbott announced in May, TREO completed an initial review of only 11 state agencies. According to the office, those reviews recommended more than 435 regulations for amendment or repeal, eliminating roughly 69,000 words from the Texas Administrative Code, and are projected to save taxpayers approximately $123 million.
Yet the challenge remains substantial. TREO Director Jerome Greener has noted that the Texas Administrative Code contains roughly 20 million words and an estimated 274,000 individual regulatory restrictions. Texas Senator Phil King, the sponsor of S.B. 14, which created this innovative regulatory relief program, said, “For Texas to remain the best place to start and grow a business, we need to continue to be the nation’s leader in government efficiency. This cutting-edge tool is a major step in that direction.”
Washington still faces the much larger task of unwinding decades of accumulated regulation, but the states are demonstrating that reform is both possible and practical.
Their efforts are not simply reducing paperwork; they are reconsidering the proper relationship between citizens and the administrative state. They recognize that bureaucracies naturally tend to expand unless institutions are designed to check that expansion. By restoring legislative oversight, reviewing existing rules, embracing new technologies, and increasing transparency, these states are showing that government can become more accountable while allowing individuals and businesses greater room to prosper.