New Cabinet Directive Mandates Regulatory Cost Cuts Across Government

Shafqat Ali announced a new cabinet directive involving the Treasury Board on October 21, 2026. The directive requires government departments to cut the cost of regulation by $2 for every dollar added over a three-year period. This measure is intended to modernize the regulatory system and support economic growth. The directive will replace a cabinet directive from 2018 and will take effect on December 31, 2026.

The directive is designed to reduce regulatory burden and red tape across the federal government. Business leaders applauded the measure, noting that the two-for-one rule is a meaningful step to lessen the regulatory burden. The government stated the change supports competitiveness and investment.