“The Great Dismantling” examines how 2025 federal deregulation shifted risk from government agencies to households, cities, and businesses, affecting 40 million Americans.
NEW YORK, Jan. 15, 2026 /PRNewswire/ — The first year of the second Trump administration saw the largest reduction of federal regulatory authority in modern U.S. history, according to a new report released today by Abstract, developer of the first legislative and regulatory intelligence platform.
“The Great Dismantling“ documents the human impact across seven sectors: Finance, Healthcare, International Development, Energy, Housing and Insurance, Chemicals and Manufacturing, and Labor & Workplace Safety. These sectors were selected based on the scale of federal policy changes, breadth of population affected, and severity of documented impacts on health, safety, and economic security.
Deregulation delivered immediate financial gains to industry including $1.5 trillion in stock buybacks, $15 billion in restored banking fees, $5 billion in new pipeline contracts, and $2-2.4 billion in cost savings through suspended greenhouse gas reporting. However, it also transferred health, safety, and economic risks to households: 4.8 million Americans lost health insurance as premiums surged 114%; 36 million workers lost federal heat protections; PFAS contamination now impacts 172 million; and the largest rollback of U.S. development aid terminated 83% of USAID programs.
“Federal support was removed faster than states had time to build new ones,” said Pat Utz, co-founder and CEO of Abstract. “What we are seeing is a Fractured Federation where your health protections, workplace safety, and consumer rights depend on your zip code. For businesses, this creates unprecedented compliance complexity as California and New York set national standards. This report charts a path forward for 2026-2028.”
Abstract’s AI legislative and regulatory intelligence platform tracked policy changes across multiple agencies and all 50 state governments from January 20 through December 31, 2025, with all findings verified through primary sources.
The key findings below are ordered by business impact and compliance complexity, with each scored on a 20-point Human Impact Scale measuring effects on jobs, consumer costs, health and safety, and equity.
Key Findings
- Healthcare: Enhanced ACA subsidies expired December 31, 2025, causing 114% premium increases and leaving 4.8 million uninsured. Short-term plans exclude 94% of adult immunizations, 71% of prescription drugs, and 100% of maternity coverage. Hospital consolidation accelerated with 39 mergers, while the Centers for Medicare and Medicaid Service (CMS) eliminated 24/7 RN requirements for nursing homes despite research linking lower staffing to higher mortality. Human Impact Score: 19/20
- International Development: USAID terminated 83% of programs (5,300+ of 6,200+), retaining only 294 of 10,000+ staff globally. $27.7 billion in awards ended, with 258,161 global and 22,453 domestic jobs lost. Internal memos project 12.5-17.9 million additional malaria cases and 71,000-166,000 deaths annually, while 75 million children could miss vaccinations. For businesses in agriculture, pharma, and exports, disrupted partnerships weaken supply chains. Human Impact Score: 18/20.
- Energy: Deregulation slashed permitting from 1-2 years to 14-28 days, delivering $2-2.4 billion in cost savings through suspended greenhouse gas reporting. However, 156.1 million Americans now live in unhealthy pollution areas—up 25 million from 2024. While ExxonMobil hit record production of 1.7 million barrels/day, climate policy rollback undermined U.S. credibility as 82% of liquified natural gas (LNG) exports went to Europe. Human Impact Score: 17/20.
- Housing and Insurance: 2025 catastrophe losses hit $107 billion (83% U.S.), including $40 billion from LA wildfires. National homeowners premiums increased 8%, with Louisiana up 27% and California 21%, as State Farm, Allstate, and Farmers retreated from high-risk markets. Streamlined National Environmental Policy Act (NEPA) reviews accelerated development in hazard-exposed wildland-urban interface areas. Human Impact Score: 17/20.
- Chemicals and Manufacturing: EPA delayed PFAS reporting despite contamination affecting 172 million Americans and 98% of waterways. The agency rolled back drinking water standards for four PFAS compounds, leaving 53 million without protection. In response, 19 states advanced their own PFAS legislation, with California, Washington, Maine, and Vermont creating a “strictest-state floor.” Human Impact Score: 17/20.
- Labor and Workplace Safety: The regulatory freeze halted OSHA’s heat protection rule six days after its comment period closed, leaving 36 million workers without federal heat safeguards when 255 million Americans experienced “life-threatening” triple-digit temperatures. The federal contractor minimum wage dropped from $17.75 to $13.30, costing 327,300 workers $9,256 annually. For employers, 18 states proposed their own heat legislation, creating regional compliance requirements and liability exposure. Human Impact Score: 15/20.
- Finance: The Consumer Financial Protection Board restored $10 billion in annual credit card late fees and $5 billion in overdraft fees, averaging $220-$225 per affected household. Americans lost $939 million to crypto frauds in early 2025. Basel III suspension led to $1.5 trillion in stock buybacks. For businesses, California, New York, Colorado, and Massachusetts filled the federal void with their own consumer protection rules. Human Impact Score: 14/20.
The full report “The Great Dismantling” is available for free download at abstract.us/annual-report.
About Abstract
Abstract is a New York-based artificial intelligence company that provides the first proactive legislative and regulatory intelligence platform. The platform delivers real-time insights on proposed and existing government policy and regulations to AmLaw 200 firms and Fortune 500 enterprises. Abstract surfaces the most relevant risks and opportunities contextualized to each business’ unique needs, risk profile, and client portfolio. Founded in 2020, the company has worked with more than 200 organizations. For more information, visit Abstract.us, LinkedIn, email us at sales@abstract.us or call +1-507-615-4305.
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