The bill increases transparency, public input, and economic scrutiny of major federal rules—giving state/local/Tribal governments, small businesses, and the public more say and legal remedies—at the cost of slower rulemaking, higher administrative and litigation costs, and greater centralization of review authority in OIRA.
Taxpayers, small businesses, state, local, and Tribal governments will get earlier, clearer, and more transparent analyses and notice (including 90-day notices, electronic dockets, required cost/benefit estimates, and annual OIRA reports) that let the public review and comment on major federal rules before they are finalized.
State, local, and Tribal governments and small businesses will have more structured, earlier opportunities to consult with agencies and propose less-burdensome alternatives or flexibilities, increasing their ability to shape rule design.
Agencies will be required to adopt the regulatory alternative that maximizes quantified net benefits (and explain departures), and OIRA will have clearer gatekeeping authority—encouraging more cost‑effective, economically proportionate rules.
Large portions of the public (taxpayers) and regulated entities (small businesses, state/local governments) may experience slower implementation of important protections and programs because additional analyses, consultations, 90‑day notices, and OIRA reviews lengthen rulemaking timelines.
Agencies and taxpayers will face higher administrative and compliance costs (for studies, consultations, dockets, reports, and litigation), which could raise government expenses and indirectly increase costs for businesses and consumers.
Centralizing key decisions and waiver authority at OIRA concentrates power, risks politicizing regulatory choices, and could reduce agencies' autonomy in carrying out statutory missions.
Based on analysis of 10 sections of legislative text.
Raises analysis, consultation, and oversight requirements for "major" federal rules (defined at $100M annual effect), adds pre‑proposal dockets, OIRA oversight, and judicial review.
Introduced January 21, 2025 by Virginia Ann Foxx · Last progress January 21, 2025
Rewrites parts of the Unfunded Mandates Reform Act to tighten rules for “major” federal regulations. It sets a $100 million (annual) threshold for major rules, requires much more detailed cost‑benefit and alternatives analysis open to public comment, mandates early and continued consultations with state, local, and Tribal officials and affected private parties, increases OIRA oversight, creates a pre‑proposal electronic docket at least 90 days before notice of proposed rulemaking, and opens agency compliance to judicial review for major rules. Several provisions take effect 120 days after enactment.