When it comes to finding regulatory freedom, head West, at least until you get to the coast. According to the latest rankings from the Mercatus Center, Idaho, Montana and Wyoming made the top ten for the least regulated states in the country. Idaho won the top spot for regulatory freedom. California, Oregon and Washington, however, are all in the bottom ten states for regulatory burden.
According to Mercatus:
“The Canadian province of British Columbia has been a pioneer in reducing red tape. Its economic growth rate increased by one percentage point because it cut regulations by nearly 40 percent. Several US states have attempted to follow suit, including Idaho, Iowa, Kentucky, Missouri, Montana, Nebraska, Ohio, Oklahoma, and Virginia.”
Least Regulated States
(Rankings out of 48 states – incomplete data for Arkansas and West Virginia)
On August 9, Idaho Governor Little issued a press release touting the Gem State's top regulatory ranking. The press release noted:
“Governor Brad Little announced today that his administration reached another milestone achievement in his ongoing efforts to reduce bureaucratic red tape and streamline government while ensuring the health and safety of Idahoans.
Regulatory reform efforts under the Little Administration ripped another 466 pages of regulations out of state administrative code in Fiscal Year 2024, which ended in June.
In total, Governor Little has cut or simplified more than 95 percent of regulations since he took office in 2019, and Idaho administrative code shrunk from 8,553 to 5,318 pages. Meanwhile, the federal government’s code of rules and regulations has grown to over 188,000 pages.”
Describing how Idaho achieved these amazing results, the press release continued:
“Idaho became the least regulated state in the nation in December 2019 and has proudly maintained the title. In 2020, Governor Little signed Executive Order 2020-01: Zero-Based Regulation, creating a rigorous process requiring agencies to review and justify the retention of each regulation line-by-line.
The initiative was so successful that in 2023, the Legislature made Governor Little’s ‘Zero-Based Regulation’ permanent, mandating that agencies review their rule chapters every eight years. Moving forward, the Governor will continue working with his legislative partners to further reduce government regulation and improve government efficiency.”
Governor Little explained the importance of reducing the regulatory burden on citizens and employers by saying:
“If left unchecked, government tends to grow, increase regulation, and encroach on our lives. My administration has been laser-focused on keeping government in check and preventing the proliferation of costly, ineffective, and outdated regulations. The proof is in the numbers. Here in Idaho, we continue to show that with determination, focus, and effective collaboration, we can achieve great things. When we reduce regulatory friction, good jobs follow.”
Montana Governor Gianforte has also made regulatory reform a top priority for the Treasure State. When signing a package of regulatory reform bills in 2023, Gianforte said:
“Together, we're making government more efficient and responsive. Together, we're opening the doors of greater opportunity that have been shut by red tape.”
Whether they be at the local, state, or federal level, all laws and regulations have a cost. In fact, a study by the Journal of Economic Growth concluded that regulations have slowed economic growth by as much as two percent per year.
As we noted in our new Policy Manual, Idaho and Montana deserve credit for advancing reforms of the regulatory state. Policymakers in other states should also consider the rules that govern rules and regulations and they should take care to ensure they are always simple, predictable, and reviewable.