The type of goal a state sets depends on how much time and effort it’s willing to dedicate to the project. Achieving billions of dollars in savings and slashing thousands of regulatory requirements is possible, but it takes time and effort.

If a state isn’t ready to undertake a major initiative, there are plenty of ways to start small. One is to launch a pilot program involving one or two agencies (like Virginia did in 2018-21). Another is to set a modest goal such as eliminating all out-of-date requirements (e.g., notarization or faxing requirements) or making sure every regulation allows electronic filing. Even these modest reforms can save millions per year.

If a state wants to achieve across-the-board reform, it can set a goal like a 25% reduction in requirements. Alternatively, it can set a dollar goal, such as $1 billion in annual savings. Fulcrum leadership can sit down with agencies, do a preliminary analysis of the regulatory code, and help decide on a goal that is both ambitious and realistic.

A final possible approach involves eliminating every regulation on a periodic basis and only reimplementing those that still make sense. Idaho took this very approach and is now the least regulated state in the Union. Fulcrum leadership has worked closely with the key Idaho reformers and can help states design a sunsetting process that will streamline regulatory burdens without creating chaos or excessive uncertainty.

Here are some useful resources:

• Youngkin Executive Order 19 (sets 25% reduction goal)

• VA ORM Regulatory Reduction Guide

• VA Regulatory Reduction Example

• Overview of Idaho initiative

Historically, yes. That’s why states usually give their agencies several years (it was 4 in Virginia) to do “periodic review” of their regulations. Unfortunately, these periodic review initiatives usually turn into box-checking exercises.

AI technology has fundamentally changed this dynamic. It can now scan the entire regulatory code and provide the following types of insights:

• How can regulations be written more tightly? 

• Where do regulations contradict or duplicate other regulations? 

• What regulations are outdated (e.g., fax requirements)?

• What costs and benefits are associated with each regulation? 

• How do your state’s regulations compare to those of sister states?

Armed with this analysis, agencies can much more quickly decide which regulations to get rid of, which to keep, and which to modify.

At the same time, agencies can’t just turn everything over to AI. You have to know which regulations to feed into the AI and what questions to ask. Once you have the AI-generated report, you have to know how to interpret it and to do quality control. And you have to assess the political viability of any proposed changes. Fulcrum’s leadership team includes the Virginia officials who launched the first-ever agentic AI regulatory reduction pilot, and it can help states design and implement their own AI-driven efforts.

Here are some useful resources:

• Executive Order 51

Virginia achieved major dollar savings by implementing a variety of reforms, including adopting changes to the building code, reforming occupational licensing, and streamlining environmental permitting. Virginia was able to cut large numbers of regulatory requirements by focusing on so-called incorporated documents, which are private standards that are linked in the regulatory code.

Fulcrum leadership can work with state reformers to design a game plan for finding big-ticket streamlining opportunities (as well as smaller-ticket and uncontroversial streamlining opportunities) and implementing reforms.

Here are some useful resources that help identify the types of regulatory reforms that yield big savings:

• ORM End of Administration Report

• Utah Occupational Licensing Guide

• Knee Center Report on Occupational Licensing Burdens

• Archbridge State Occupational Licensing Index

When past regulatory reform efforts have failed, it’s usually because they didn’t have someone (or some office) leading the charge.  The key factor in Virginia’s success was Governor Youngkin’s decision to create an Office of Regulatory Management to oversee the regulatory streamlining effort.

You can read the executive order (EO 19) that created ORM here.

You can read Texas legislation that created the Texas Regulatory Efficiency Office, which was inspired by Virginia ORM, here.

And you can find a model bill from the American Legislative Exchange Council that a state could use to create an ORM here.

Fulcrum Foundation can work with states interested in creating an ORM to discuss how to design and staff the office. If states feel they lack the resources to create a new office, Fulcrum can also work with states to implement alternative approaches, including tasking one or more existing state officials with overseeing regulatory reform.

State regulatory reform is really taking off!  Here are the state statutes and executive orders that implement reform programs inspired by the work of Virginia ORM:

• Texas

• Indiana

• Alaska

Additional states (including Oklahoma, Louisiana, and West Virginia, among others) have launched regulatory reform initiatives inspired by those in Virginia.  And other states have launched DOGEs or similar initiatives that are pursuing regulatory reform in addition to other goals (including Iowa, Florida, and South Carolina, among others).

Fulcrum Foundation leadership works with regulatory reformers in each of these states. It can help connect state reformers with peers doing similar things, ensuring that innovations in one state spread nationwide.

Fulcrum has also launched two initiatives to help spread promising reforms. The first is the Interstate Council of Regulatory Reformers. It includes officials from states engaged in regulatory reform and meets periodically to share ideas. If you lead a state reform effort and would like to join, please click here.

The second is a promotional series that will highlight specific reforms that save money, clear out unnecessary regulations, or make people’s lives easier. You can find several Virginia-related examples below. We will be adding and advertising examples from other states in the coming months.  Please email us if you would like to feature a reform from your state.

• Virginia housing reforms

• Virginia rainwater harvesting reforms

• Virginia CPA reforms

Collaborative, honest, and straightforward. We're here to guide the process, bring ideas to the table, and keep things moving.