The Department of Government Efficiency (DOGE) has begun deploying an artificial intelligence system to identify and recommend the deletion of tens of thousands of federal regulations, aiming to cut nearly half of the current rulebook by early 2026. The move, backed by the Trump administration, marks one of the most ambitious deregulatory efforts in modern US history and is already raising alarm among legal experts and environmental advocates.
Automated tool driving deregulation push
The AI tool—internally referred to as the Deregulation Decision System—is designed to comb through roughly 200,000 active federal rules and flag those deemed outdated, duplicative or not legally required. According to internal documents, DOGE plans to eliminate around 100,000 regulations before the one-year anniversary of President Trump’s second term in office.
Pilot use of the system has already begun within departments such as Housing and Urban Development (HUD) and the Consumer Financial Protection Bureau (CFPB). Reports from HUD staff suggest the AI reviewed over 1,000 regulatory items in under two weeks, offering automated suggestions on which rules to remove or revise. The CFPB, meanwhile, has reportedly handed the AI full control of its initial review process.
Aims of speed and savings
DOGE officials argue that the system represents a breakthrough in public administration, claiming it could reduce manual review labour by 93 percent and deliver trillions in savings across sectors burdened by compliance costs. The agency views the AI tool as a long-overdue corrective to what it calls “decades of unchecked regulatory expansion”.
Supporters of the programme say it streamlines a bloated and inefficient process, allowing faster regulatory modernisation without the delays of conventional rule-by-rule review. They also highlight its potential to cut red tape for businesses, especially in sectors like housing, finance and energy.
Accuracy and legality questioned
Despite its efficiency claims, the system has already shown signs of inaccuracy. Staff at HUD noted that the AI occasionally mislabelled valid statutory provisions as removable, requiring human intervention to correct the output. Critics warn this raises serious legal concerns—particularly under the Administrative Procedure Act, which governs how federal rules are created or repealed.
Legal analysts and civil society groups argue that major deregulation via AI risks undermining democratic accountability, especially if rules tied to public health, environmental protections or civil rights are swept away by flawed algorithms. Some observers also question whether such rapid rollbacks can withstand judicial scrutiny if challenged in court.
Opacity and political undertones
The structure of DOGE itself has drawn scrutiny for its opaque operations and unusual staffing. Though Elon Musk is no longer officially involved, former associates and aligned technologists reportedly remain embedded in various agencies under the so-called “DOGE 2.0” programme. There are growing calls for transparency over how the AI system works, what data it uses, and how decisions are ultimately approved.
With the Trump administration pushing hard for visible progress before the 2026 milestone, the deregulation drive could become a defining issue in both domestic governance and international regulatory alignment—particularly in trade, climate and financial oversight.
REFH – Newshub, 27 July 2025
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