Creates annual "regulatory budgets" that cap the amount of new unfunded regulatory costs federal agencies may impose each fiscal year. The Office of Management and Budget (OMB) Director must set both government-wide and agency-specific limits, require reporting and notifications when rules are proposed, create procedures when a proposed rule would exceed a limit (including potential referral to Congress for approval), establish an OMB Associate Administrator to oversee implementation, and require annual reports and judicial-review rules. Monetary policy rules are exempted.