Unfunded Mandates Accountability and Transparency Act of 2025

This bill makes federal agencies show their work before they issue big new rules. For any “major rule” that is likely to have a large impact on the economy (for example, $100 million or more, big price changes, or major effects on jobs or competition), agencies must publish an easy-to-find analysis that estimates costs and benefits, compares options (including doing nothing or using market-based tools), looks at who is most affected, and estimates job gains or losses. The public can comment on the initial analysis before the rule is finalized.

Agencies must also talk early and often with state, local, and Tribal governments and with people and businesses that would be affected (including small businesses). They should consider the combined impact of different rules and can’t rely only on online comments to count as “consultation.” When choosing a final approach, agencies should pick the option that delivers the most net benefits, unless the federal review office approves a different choice for clearly explained reasons, like important benefits or rights that can’t be easily measured.

The bill strengthens oversight by the Office of Information and Regulatory Affairs (OIRA), requires an early “notice of initiation” at least 90 days before proposing a major rule, and sets up a public docket to gather ideas and alternatives. It also applies these requirements to independent regulatory agencies, but exempts Federal Reserve monetary policy. People affected by a final major rule can ask a court to check whether the agency followed the analysis and selection rules, and the court can order fixes. Some changes take effect 120 days after the bill becomes law.

Key points:

• Who is affected: Federal agencies; state, local, and Tribal governments; businesses (including small businesses); and the public.
• What changes: Deeper cost–benefit reviews for major rules; earlier public notice; stronger consultation; OIRA oversight; option that maximizes net benefits; court review if agencies don’t follow the rules; budget point of order extended to private-sector mandates.
• When: Most oversight and consultation updates apply after an effective date 120 days after enactment.