The bill forces agencies to offset new costly regulations by repealing existing ones, which reduces regulatory burdens and increases transparency for governments and businesses but risks delaying protections, weakening safeguards, and adding administrative costs.
State and local governments, small businesses, and other regulated entities face lower risk of new net regulatory costs because agencies must repeal existing rules (three for each costly new rule) before issuing new costly regulations.
Taxpayers and the public gain greater regulatory transparency and congressional/OMB oversight because agencies must publish repealed rules in the Federal Register and report costly or ineffective rules to Congress and OMB within 90 days.
Agencies are pushed to review and remove outdated, duplicative, or ineffective regulations, which can streamline the regulatory code and reduce regulatory clutter over time.
The public could face delays or blocks to important new public-health, safety, or environmental protections because agencies must identify and repeal three existing rules before issuing some new costly regulations.
Consumers, workers, and the environment could lose protections if agencies repeal lower-cost but important rules solely to meet repeal-count requirements, reducing substantive safeguards.
Rulemaking may be skewed toward narrower, weaker, or less comprehensive regulatory approaches as agencies try to avoid triggering repeal/count or cost-equality requirements, limiting effective policy solutions.
Based on analysis of 2 sections of legislative text.
Introduced January 14, 2025 by Stephanie I. Bice · Last progress January 14, 2025
Requires federal agencies to repeal at least three existing rules that are, to the extent practicable, related to a proposed new rule before issuing that new rule. For major rules, agencies must both repeal three related rules and obtain certification from the OIRA Administrator that the new major rule’s cost is less than or equal to the total cost of the repealed rules; repeals must be published in the Federal Register. Agencies must also submit a review to Congress and the OMB Director within 90 days of enactment identifying costly, ineffective, duplicative, or outdated rules.