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Requires federal agencies and the Office of Management and Budget (OMB) to rely only on monetized, quantified monetary benefits when doing regulatory benefit‑cost and regulatory impact analyses. It bans use of non‑monetized or unquantified factors in those analyses, requires agencies to publish full analyses and methods in the Federal Register, directs OMB to issue revised guidance within 90 days, and creates a private right of action allowing courts to invalidate rules that rely on prohibited factors. The rulemaking cutoff applies to rules issued on or after November 9, 2023, and the statutory amendments take effect 30 days after enactment.
Agencies must prioritize tangible, immediately quantifiable monetary benefits in their decision-making processes.
Agencies must ensure that regulatory actions yield clear and measurable financial benefits to the public and private sectors.
Agencies must minimize unnecessary regulatory costs or burdens.
Amends title 5, United States Code, section 601 by modifying paragraph (6) and (7) and adding two new definitions: (8) defines “benefit‑cost analysis” by reference to OMB Circular A–94 as revised November 9, 2023 (or successor); (9) defines “regulatory impact analysis” by reference to specified Executive Orders and OMB Circulars (Executive Orders 12866, 13563, 14094; OMB Circulars A–4 and A–94 as revised November 9, 2023, or successors).
Adds new 5 U.S.C. 613(a): An agency may not consider any non‑monetized or unquantified factor when conducting a regulatory impact analysis or benefit‑cost analysis for any proposed, final, or interim final rule.
Who is affected and how:
Federal agencies and OMB: Must change analytic practice to exclude non‑monetized or unquantified factors, publish complete methodologies for each rule, and follow new OMB guidance. This raises staff time, technical needs, and documentation requirements.
Regulated businesses and industries: May benefit from a higher evidentiary bar for rules based on qualitative benefits; some regulations could be delayed, narrowed, or invalidated if agencies cannot produce monetized benefits. Businesses may also use the new private right of action to challenge rules.
Courts and litigants: Courts will see new challenges based on whether agencies relied on prohibited non‑monetized factors; judges will be asked to evaluate analytic methods and potentially vacate rules. Interested parties and industry groups may bring more litigation.
Public interest groups, environmental and public‑health stakeholders: May find it harder to defend rules that rely on qualitative or hard‑to‑monetize benefits (like ecosystem services, biodiversity, or some health and equity impacts). This could reduce the weight those benefits carry in regulatory decisionmaking.
General public and consumers: Potentially affected if some protections or standards are weakened, delayed, or overturned because agencies cannot monetize certain benefits. Conversely, clearer monetary accounting could increase transparency about expected financial impacts.
Net effect: The law shifts regulatory decisionmaking toward quantified dollar estimates, increases transparency of analytic methods, and raises the risk that rules relying on qualitative benefits will be narrowed or invalidated — while imposing extra analytic and litigation burdens on agencies and possibly lengthening rulemaking timelines.
Modifies 5 U.S.C. §601 by adjusting punctuation in paragraphs (6) and (7) and adding new paragraphs (8) and (9) to provide definitions for 'benefit-cost analysis' and 'regulatory impact analysis', referencing OMB Circular A–94 (Nov 9, 2023 revision), OMB Circular A–4 (Nov 9, 2023 revision), and specified Executive Orders.
Adds new section 613 to chapter 6 titled 'Prohibition on use of non-monetized or unqualified factors for regulatory analyses', prohibiting agencies from considering non-monetized or unquantified factors in regulatory impact or benefit-cost analyses; prohibiting the Office of Management and Budget from authorizing or considering such factors; requiring agencies to publish summaries and texts of analyses in the Federal Register; directing OMB to issue revised guidance within 90 days of enactment; and providing for judicial review that permits civil actions and requires courts to invalidate rules that relied on such factors, with applicability to rules issued on or after November 9, 2023.
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced January 17, 2025 by Joni Ernst · Last progress January 17, 2025
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RED TAPE Act
Committee on Small Business and Entrepreneurship. Hearings held.
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced in Senate