The Virginia Model: How the Commonwealth Built a Best-in-Class Regulatory System

• State & Local
• Federalism

• Empowering State and Local Governance

This essay examines outlines how Virginia Governor Glenn Youngkin transformed the commonwealth's regulatory system into a national prototype through a focus on transparency, rigid oversight, and assertive streamlining. The efforts of the newly created Office of Regulatory Management contributed to the elimination or simplification of more than 88,000 requirements and 12 million words of guidance, saving Virginia over $1.2 billion without hurting the public good.

Key Takeaways

• State policymakers can boost their state's economy by cutting regulatory red tape. Reducing unnecessary regulations fosters a more conducive environment for businesses to thrive, leading to increased investment and job creation.
• Virginia has pioneered a model that has successfully trimmed over 30 percent of its regulatory requirements. This significant reduction not only improved business operations but also set a precedent for other states to follow in their regulatory reform efforts.
• Streamlined guidance for agencies and consistent oversight were vital to the Virginia model's success. By providing clear directives and maintaining consistent oversight, Virginia ensured that regulatory changes were effectively implemented and adhered to across all agencies.
• Fiscal costs were minimal, while economic benefits exceeded $1 billion annually. This impressive return on investment demonstrates that regulatory reform can yield substantial financial gains without imposing heavy burdens on state resources.
• An AI pilot program to help identify red tape helped keep costs low. Utilizing artificial intelligence allowed for efficient analysis and identification of outdated regulations, ensuring that the reform process was data driven and cost-effective.

The Virginia Model: How the Commonwealth Built a Best-in-Class Regulatory System by Hoover Institution

Cite this essay:

Reeve T. Bull and Patrick A. McLaughlin, "The Virginia Model: How the Commonwealth Built a Best-in-Class Regulatory System," Hoover Institution, State and Local Governance Initiative, February 2026.