Sponsors (3)
The bill limits and centralizes regulatory costs to reduce compliance burdens and increase transparency, but risks delaying or weakening health, safety, and environmental protections and shifting costs or disputes onto regulated parties.
Small-business owners: face caps on new unfunded regulatory costs, limiting additional compliance expenses year-to-year.
Taxpayers and the public: OMB must publish agency and governmentwide cost limits and the reasoned bases within seven days on a designated website, increasing transparency about regulatory budgets.
Agencies and subnational governments: agencies must justify proposed limits and notify OMB when a rule would exceed limits, which encourages consideration of lower-cost alternatives and more deliberate rule design.
Homeowners, workers, and the public: cost caps could delay or block rules that protect health, safety, or the environment if those rules would exceed set ceilings.
Regulated entities and the public: agencies may shift costs onto regulated businesses or reduce regulatory protections as they cut, delay, or weaken rules to stay under limits.
State and local governments, businesses, and agencies: requiring Congressional joint resolutions to allow net cost increases creates political delays for rules that may be time-sensitive or need rapid implementation.
Based on analysis of 2 sections of legislative text.
Requires OMB to set annual governmentwide and agency-level caps on additional unfunded regulatory costs and blocks rules that would exceed those caps unless Congress approves.
Introduced May 8, 2025 by Pat Fallon · Last progress May 8, 2025
Sets annual governmentwide and agency-level caps on additional unfunded regulatory costs and gives the OMB Director authority to enforce those caps, block agency rules that would increase unfunded costs, and require agencies to justify proposed limits. Agencies must submit proposed limits in advance, OMB must publicly report limits quickly, and no net increase in unfunded regulatory costs is allowed unless Congress approves by joint resolution.