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Law360 (May 15, 2020, 8:05 PM EDT) -- Republican senators have penned a letter demanding additional COVID-19 regulatory relief to lessen the burden on U.S. businesses, calling it the "most efficient means" to promote economic recovery while suggesting that it could lessen the price tag of the next virus relief bill.
Thursday's letter to Senate Majority Leader Mitch McConnell, R-Ky., and Minority Leader Chuck Schumer, D-N.Y., states that a regulatory approach would avoid the "pitfalls of waste, fraud, and abuse that always accompany increased government spending," calling further increases in federal spending unsustainable. The missive was signed by 28 GOP senators, including Marsha Blackburn of Tennessee, Chuck Grassley of Iowa and Mike Lee of Utah.
"We write to urge the consideration of statutory changes to significantly reduce red tape, paperwork, and other regulatory requirements," the senators wrote. "Regulatory reform, whether through paperwork reduction or removing outmoded compliance requirements, is the most efficient means of promoting economic recovery."
The letter follows a Democratic proposal unveiled May 12 to shell out $3 trillion as part of the next relief package, including nearly $1 trillion for state and local governments and hundreds of billions to cover health care costs, rental assistance and essential worker relief payments. The House passed the bill late Friday.
The Republican senators noted that regulatory burdens are estimated to cost businesses as much as $1.9 trillion, suggesting that this could counteract the size of the next relief package. The source of the data was not given, but a study released last May by public policy think tank the Competitive Enterprise Institute cited the figure as the annual cost of government regulation.
House Speaker Nancy Pelosi, D-Calif., noted on Tuesday that the $3 trillion proposal put "much-needed money into the pockets of the American people." Meanwhile, Republican senators noted that negotiations had just begun, with House Republican Minority Leader Kevin McCarthy of California tweeting that the proposal included "bailouts for blue states and giveaways for billionaires."
"We stand ready to work with you to adopt common sense regulatory relief in an effort to promote long-term economic recovery following the COVID-19 healthcare crisis," the senators said in Thursday's letter, though they did not specify which rules or laws they'd like to see changed.
--Additional reporting by Andrew Kragie. Editing by Alanna Weissman.
Update: This story has been updated to reflect the House's passage of the coronavirus relief legislation.
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