Regulatory fragmentation occurs when multiple federal agencies oversee a single issue. Using the full text  of  the  Federal  Register, the  government’s  official  daily  publication,  we  provide  the  first  systematic  evidence  on  the  extent  and  costs  of  regulatory  fragmentation.  Fragmentation  increases  the  firm’s  costs  while lowering its productivity, profitability, and growth. Moreover, it deters entry into an industry and  increases the propensity of small firms to exit. These effects arise from redundancy and, more prominently,  from  inconsistencies  between  government  agencies.    Our  results  uncover  a  new  source  of  regulatory  burden, and we show that agency issues among regulators contribute to this burden.