 -- President Donald Trump signed an executive order Monday morning that he said will “dramatically reduce federal regulations” on businesses.

“We’ll be reducing [regulations] big league and their damaging effects on our small businesses, our economy and our entrepreneurial spirit,” Trump said during a meeting with small business leaders. “The American dream is back, and we’re going to create an environment for small business like we haven’t had in many, many decades.”

Trump said the order mandates that for every new regulation implemented by federal agencies, two existing regulations must be cut. He called it the “largest ever cut, by far, in terms of regulations.”

He was flanked by small business leaders as he signed the order in the Oval Office on Monday.

"If there's a new regulation, they have to knock out two but it goes far beyond that. We're cutting regulations massively for small business and for large business but they're different. But for small business, this is what this is about today. This will be the biggest such act that our country has ever seen," Trump said. "There will be regulation, there will be control, but it will be a normalized control where you can open your business and expand your business very easily and that's what our country has been all about."

A senior administration official briefed on the order said federal agencies that want to enact a new regulation will have to identify two to cut based on their own estimate of the cost of those regulations to the economy and the private sector. Agencies will identify possible regulations to eliminate but the White House will ultimately decide which to cut.

“Any new incremental costs associated with new regulations shall, to the extent permitted by law, be offset by the elimination of existing costs associated with at least two prior regulations,” the order states. “Total incremental cost of all new regulations, including repealed regulations, to be finalized this year shall be no greater than zero”