REG Budgeting Act of 2025

This bill would set a yearly limit on how much new, unfunded costs federal rules can add. The Office of Management and Budget (OMB) would set a government‑wide cap and a cap for each agency before the next fiscal year and share reports on a public website. Agencies would propose their own limits, and OMB could require them to reduce past regulatory costs to make room for new ones.

Rules that would push an agency over its cap generally could not take effect that year unless Congress approves them. Until Congress approves any plan that allows a net increase in these new costs, OMB must follow a default “no net increase” policy. Agencies usually may not finalize cost‑adding rules until OMB sends its reports to Congress, unless the President says the rule is needed for an emergency, criminal law enforcement, national security, or a trade agreement. Agencies must notify OMB if a rule would exceed a cap and include a clear cost statement when they issue a final rule . People can ask a court to review if an agency breaks these rules. Monetary policy rules by the Federal Reserve are exempt. The bill also creates a new OMB official to oversee this work and requires an annual report each October on whether agencies stayed within their caps .

• Who is affected: Federal agencies that issue rules, and people and businesses that must follow them and pay new compliance costs.
• What changes: OMB sets yearly caps on new unfunded rule costs; rules that would exceed a cap need Congress’s approval; public reports and oversight are required; court review is available .
• When: Caps are set by September 30 for the next year, and reports are posted within 7 days; a “no net increase” rule applies until Congress approves any increases; an annual report is due by October 30; a public website is designated within 90 days; a new oversight official is appointed within 30 days and issues agency guidelines within 90 days .