Ottawa sets a $2-for-$1 regulatory burden rule in new red-tape directive
A new federal cabinet directive will require regulators to offset every dollar of added administrative burden with two dollars in reductions elsewhere.
The federal government has introduced a new cabinet directive that will require regulators to remove two dollars in administrative burden costs for every dollar added through new regulation.
The Treasury Board of Canada Secretariat announcement, published October 21, 2026, says the Cabinet Directive on Regulatory Competitiveness and Red Tape Reduction will take effect on December 31, 2026. It replaces the 2018 Cabinet Directive on Regulation.
Federal regulators will also be directed to assess competitiveness impacts, remove outdated requirements and use recognized standards where appropriate. The government says regulators will still have to conduct cost-benefit and risk analysis and meet obligations to Indigenous Peoples.
What changes
The rule is a policy direction for federal departments and agencies, not an immediate repeal of any specific regulation. Its practical effect will depend on how future regulatory proposals measure added costs and identify offsets.
Illustrative stock image: Kelly Sikkema / Unsplash, under the Unsplash Licence. The image shows paperwork on a desk and does not depict the federal announcement.
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