CPSC Reverses Biden-Era Economic Methodology, Restores Sound Science
Summary
The U.S. Consumer Product Safety Commission (CPSC) has reversed a 2024 Biden administration guidance on the Value per Statistical Life (VSL) used in cost-benefit analysis. The agency is restoring a methodology that uses a single VSL estimate for all age groups, aligning with other federal agencies and established economic research.
What changed
The U.S. Consumer Product Safety Commission (CPSC) has officially withdrawn a 2024 guidance document that altered the methodology for calculating the Value per Statistical Life (VSL) in cost-benefit analyses. This Biden-era guidance had controversially double-counted the lives of children to inflate the projected benefits of safety regulations, a practice not used by other federal agencies. The CPSC states this flawed approach exposed lifesaving safety rules to legal risk and made it easier to impose costly regulations.
By rescinding this guidance, the CPSC is reverting to a methodology that uses a single VSL estimate for all age groups, adjusted for inflation and economic factors, consistent with Office of Management and Budget guidance and broader federal practice. This change aims to provide regulated entities with clearer rules, reduce regulatory uncertainty, and ensure that safety decisions are transparent, predictable, and legally defensible. While the document does not specify a compliance deadline, regulated entities should be aware of the shift in the agency's analytical approach for future rulemakings.
What to do next
- Review CPSC's updated guidance on VSL methodology for cost-benefit analysis.
- Ensure all future regulatory impact analyses submitted to or conducted by CPSC adhere to the restored methodology.
Source document (simplified)
Trump CPSC Reverses Biden-Era Flawed Economic Methodology; Restores Sound Science and Common Sense
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- Copy link Release Date: February 24, 2026 Washington —The U.S. Consumer Product Safety Commission (CPSC) today struck down a 2024 Biden administration regulatory policy that drastically changed how the agency measured the benefits of safety regulations. This action continues CPSC’s efforts to reduce unnecessary regulatory burdens while preserving the agency’s core consumer safety mission.
The Biden-era guidance altered how CPSC used the Value per Statistical Life (VSL), a tool for conducting cost-benefit analysis of safety regulations, by double-counting the lives of children to inflate artificially the projected benefits of new rules. No other government agency used that flawed approach. The guidance made it easier to impose costly and burdensome regulations and exposed the agency’s lifesaving safety rules to significant legal risk.
“Under President Trump’s leadership, CPSC is reversing the Biden administration’s heavy-handed approach to regulation,” said CPSC Acting Chairman Peter A. Feldman. “We are restoring sound science, common sense, and accountability. American consumers and businesses need to trust that CPSC’s regulatory proposals are legally defensible, based on real data, and accurately reflect costs and benefits.”
By rescinding the guidance, CPSC returns to a methodology that uses a single VSL estimate for all age groups, adjusted for inflation and economic factors. This is the same approach used across the federal government. It aligns with Office of Management and Budget guidance and is grounded in established economic research.
Consistent economic methodology provides regulated entities with clear rules of the road, reduces regulatory uncertainty, and ensures that safety decisions are transparent, predictable, and legally defensible. CPSC’s deregulatory efforts maintain strong protections for American consumers while allowing American businesses to grow, invest, and compete. Regulations that reduce competition, promote unscientific agendas, impose unnecessary costs, or make products unaffordable are no longer agency priorities.
Release Number 26-281 About the U.S. CPSC
The U.S. Consumer Product Safety Commission (CPSC) is charged with protecting the public from unreasonable risk of injury associated with the use of thousands of types of consumer products. Deaths, injuries, and property damage from consumer product-related incidents cost the nation more than $1 trillion annually. Since the CPSC was established more than 50 years ago, it has worked to ensure the safety of consumer products, which has contributed to a decline in injuries associated with these products.
Federal law prohibits any person from selling products subject to a Commission ordered recall or a voluntary recall undertaken in consultation with the CPSC.
For lifesaving information:
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