Sponsors (8)
The bill increases clarity and limits government payouts from settlement-driven rulemaking, but does so by constraining agencies' settlement flexibility and concentrating exemption authority in the Executive Office—potentially deterring legal challenges and politicizing what counts as a regulation.
Federal agencies and federal employees: the bill limits consent-decree terms that would bind agencies to obligations beyond a court's authority, preserving separation of powers and preventing agencies from accepting unlawful obligations.
Taxpayers: the bill prevents settlement-driven payments of attorneys' fees or litigation costs tied to settlements that produce regulations or guidance, reducing government payouts and saving federal funds.
State governments and regulated entities: the bill clarifies what counts as "guidance" versus a "regulation," increasing transparency and predictability about when rules are enforceable.
States, NGOs, and individual plaintiffs: banning recovery of attorneys' fees in settlements that lead to guidance or regulations may deter meritorious lawsuits because plaintiffs can't recover their costs.
Federal agencies, federal employees, and taxpayers: restricting what terms agencies can agree to in consent decrees could reduce agencies' ability to settle litigation efficiently, raising legal costs and prolonging disputes.
Federal agencies and employees: giving OIRA authority to exempt categories of rules centralizes discretion in the Executive Office, which could politicize what counts as a "regulation" and reduce independent agency flexibility.
Based on analysis of 2 sections of legislative text.
Stops federal agencies from using consent decrees that exceed court authority and forbids fee or litigation-cost payments in settlements that create regulations or guidance.
Introduced January 31, 2025 by Michael Cloud · Last progress January 31, 2025
Prohibits federal agencies from entering consent decrees or settlement terms that exceed a court’s authority and bars including attorneys’ fees or litigation-cost payments in any settlement or consent decree that results in a regulation or guidance document where a Federal agency is a party. Defines key terms for “guidance document” and “regulation,” lists several categories of excluded rules, and preserves the rest of the statute if part is struck down. A short-title provision only names the law and does not change substantive law, funding, or create deadlines.