This bill would change how federal agencies settle lawsuits. Agencies could not agree to a court-approved settlement (a consent decree) that asks for more than what the judge is allowed to order. And if a settlement or court order leads to a new rule or agency guidance, it could not include paying the other side’s attorneys’ fees or legal costs .

Key points

• Who is affected: Federal agencies, and people or groups who sue them about rules or guidance.
• What changes: Limits what agencies can agree to in court settlements; bans paying attorneys’ fees or litigation costs in settlements or consent decrees that lead to a regulation or guidance document .
• Why it matters: Could reduce fee payments in these cases and may affect how agencies settle and how new rules or guidance come about.