119-hr3279

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3279 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3279

 To require the Director of the Office of Management and Budget to 
 establish a limit for the total amount of additional unfunded 
 regulatory costs that may be imposed in a fiscal year, and for other 
 purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 8, 2025

 Mr. Fallon (for himself, Mr. Comer, and Ms. Foxx) introduced the 
 following bill; which was referred to the Committee on Oversight and 
 Government Reform, and in addition to the Committee on the Judiciary, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
 the committee concerned

_______________________________________________________________________

 A BILL

 To require the Director of the Office of Management and Budget to 
 establish a limit for the total amount of additional unfunded 
 regulatory costs that may be imposed in a fiscal year, and for other 
 purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Renewing Efficiency in Government by 
Budgeting Act of 2025'' or the ``REG Budgeting Act of 2025''.

SEC. 2. REGULATORY BUDGETING.

    (a) Limit for the Amount of Additional Unfunded Regulatory Costs 
That May Be Imposed Each Fiscal Year.--

    (1) Establishment.--
        (A) Omb limit.--On or before September 30 of each 
 fiscal year, the Director shall establish--
            (i) a limit on the amount of additional 
 unfunded regulatory costs that may be imposed 
 collectively by the heads of all agencies in 
 the next fiscal year; and
            (ii) as part of the limit established under 
 clause
            (i) , a limit on the amount of additional 
 unfunded regulatory costs that may be imposed 
 individually by the head of each agency in the 
 next fiscal year.
        (B) Proposed agency limits.--Not later than 90 days 
 before the date on which the Director establishes a 
 limit for the head of an agency under subparagraph
        (A)
            (ii) , the head of each agency shall submit to the 
 Director--
            (i) a proposed limit on the amount of 
 additional unfunded regulatory costs that may 
 be imposed by the head of that agency in the 
 next fiscal year; and
            (ii) detailed information that describes 
 the bases and reasoning for the proposed limit 
 (including any costs described under subsection

    (b)

    (1)
        (B)
            (ii) ).
            (C) Additional matters related to limit.--The 
 Director may require as part of a limit under 
 subparagraph
        (A) that cumulative unfunded regulatory 
 costs be reduced, including for the purpose of 
 offsetting any additional unfunded regulatory costs 
 that may be imposed by the heads of agencies during the 
 fiscal year for which the limit is established.
            (D) Congressional approval; implementation of 
 default limit pending required congressional 
 approval.--
            (i) In general.--The Director may not 
 implement a limit established under 
 subparagraph
        (A) that allows the head of an 
 agency to impose a net increase in additional 
 unfunded regulatory costs during the fiscal 
 year to which the limit applies unless and 
 until Congress approves such limit by joint 
 resolution.
            (ii) Limit to be implemented before 
 congressional approval.--Following the 
 Director's submission to Congress under 
 paragraph

    (2) of a limit described in clause
            (i) , and until Congress approves such limit, 
 the Director shall implement in lieu of such 
 limit a limit that allows no net increase in 
 additional unfunded regulatory costs to be 
 imposed during the applicable fiscal year.

    (2) Reports.--
        (A) Agency-wide limit.--Not later than 7 days after 
 establishing a limit under paragraph

    (1)
        (A)
            (i) , the 
 Director shall--
            (i) submit to the appropriate congressional 
 committees a report that identifies the limit 
 established and contains a reasoned statement 
 of the basis and purpose of establishing such 
 limit (including an identification of any cost 
 taken into account in establishing the limit 
 pursuant to subsection

    (b)

    (1)
        (B)
            (i) ); and
            (ii) publish the report on the website 
 designated under subparagraph
            (D) .
        (B) Agency-specific limit.--Not later than 7 days 
 after establishing a limit under paragraph

    (1)
        (A)
            (ii) with respect to an agency, the Director shall--
            (i) submit a report that identifies the 
 limit established and contains a reasoned 
 statement of the basis and purpose of 
 establishing such limit (including an 
 identification of any cost taken into account 
 in establishing the limit pursuant to 
 subsection

    (b)

    (1)
        (B)
            (i) ) to--
            (I) the appropriate congressional 
 committees; and
            (II) each standing committee with 
 jurisdiction under the rules of the 
 House of Representatives or the Senate 
 to report a bill to amend the 
 provisions of law under which the head 
 of the agency is authorized to 
 promulgate rules; and
            (ii) publish the report on the website 
 designated under subparagraph
            (D) .
            (C) Prohibition on promulgating certain rules until 
 submission of report to appropriate congressional 
 committees.--
            (i) In general.--The head of an agency may 
 not finalize a rule that imposes an additional 
 unfunded regulatory cost until the Director 
 submits to the appropriate congressional 
 committees the reports required by subparagraph
        (A)
            (i) and subparagraph
        (B)
            (i) for the fiscal 
 year in which the rule would be finalized.
            (ii) Exception.--The prohibition under 
 clause
            (i) shall not apply to any rule with 
 respect to which the President issues an 
 Executive Order stating that the rule should 
 take effect because the rule is--
            (I) necessary--

    (aa) because of an 
 emergency, including an 
 imminent threat to health or 
 safety;

    (bb) for the enforcement of 
 criminal laws; or
            (cc) for national security; 
 or
            (II) being issued pursuant to a law 
 implementing an international trade 
 agreement.
            (D) Designation of website.--Not later than 90 days 
 after the date of the enactment of this subsection, the 
 Director shall designate a website through which the 
 Director will publish reports in accordance with 
 subparagraphs
        (A) and
        (B) .

    (b) Rules Resulting in Limit Being Exceeded.--

    (1) Congressional approval.--
        (A) Prohibition on rule taking effect.--If the 
 promulgation of any individual rule would result in a 
 limit established under subsection

    (a)

    (1)
        (A) being 
 exceeded, notwithstanding any requirement established 
 by the Director pursuant to subsection

    (a)

    (1)
            (C) , the 
 rule may not go into effect during the fiscal year in 
 which the rule is promulgated unless and until Congress 
 approves such rule during such fiscal year by joint 
 resolution.
        (B) Accounting for certain costs imposed under 
 rules promulgated but not approved.--In the case that a 
 rule is prohibited from going into effect during the 
 fiscal year in which the rule is promulgated because 
 Congress does not approve such rule under subparagraph
        (A) , such rule may go into effect during any proceeding 
 fiscal year if--
            (i) the head of the agency identifies under 
 subsection

    (a)

    (1)
        (B)
            (ii) the amount of 
 additional unfunded regulatory costs that would 
 be imposed in such fiscal year if such rule 
 takes effect in that fiscal year;
            (ii) the Director takes into account any 
 such costs in establishing the limits for that 
 fiscal year under subsection

    (a)

    (1)
        (A) ; and
            (iii) in the case that such limits allow 
 for the head of an agency to impose a net 
 increase in additional unfunded regulatory 
 costs during the fiscal year to which the limit 
 applies, Congress approves such limits under 
 subsection

    (a)

    (1)
            (D) .

    (2) Notification.--In the case that the head of an agency 
 determines that finalizing a rule may result in the amount of 
 additional unfunded regulatory costs imposed by the head of the 
 agency during that fiscal year to exceed a limit established 
 under subsection

    (a)

    (1)
        (A) , notwithstanding any requirement 
 established by the Director pursuant to subsection

    (a)

    (1)
            (C) , 
 the head of the agency--
        (A) shall submit, before promulgating a general 
 notice of a final rule with respect to such rule, a 
 notification to the Director that includes--
            (i) a justification for exceeding such 
 limit as a result of such rule;
            (ii) by how much the limit will be exceeded 
 as a result of such rule;
            (iii) an identification of any requirement 
 established by the Director pursuant to 
 subsection

    (a)

    (1)
            (C) to avoid exceeding such 
 limit as a result of such rule; and
            (iv) whether the head of the agency 
 identified or considered any alternatives to 
 such rule, or the establishment of additional 
 requirements by the Director pursuant to 
 subsection

    (a)

    (1)
            (C) , that would have resulted 
 in the imposition of a lesser amount of 
 additional unfunded regulatory costs, and if 
 so, how much less such amount would have been; 
 and
        (B) may not promulgate such rule until the head of 
 the agency receives from the Director a notification 
 under paragraph

    (3)
            (C) with respect to such rule.

    (3) Determination by director.--After receiving a 
 notification under paragraph

    (2) , the Director shall--
        (A) determine whether finalizing such rule during 
 that fiscal year will result in a limit established 
 under subsection

    (a)

    (1)
        (A) being exceeded, 
 notwithstanding any requirement established by the 
 Director pursuant to subsection

    (a)

    (1)
            (C) ;
        (B) determine whether the Director agrees with the 
 determination of the head of the agency that such rule 
 should be finalized notwithstanding such limit; and
            (C) submit a written notification to the head of 
 the agency on the determinations made under 
 subparagraphs
        (A) and
        (B) of this paragraph.

    (4) Report to congress.--In the case that the Director 
 determines under paragraph

    (3)
        (B) that the Director agrees with 
 a determination by the head of an agency to finalize a rule 
 that will result, notwithstanding any requirement established 
 by the Director pursuant to subsection

    (a)

    (1)
            (C) , in a limit 
 established under subsection

    (a)

    (1)
        (A) being exceeded, not 
 later than 7 days after the Director submits a notification to 
 the head of an agency under paragraph

    (3)
            (C) of this subsection 
 with respect to such determination, the Director shall submit 
 to the appropriate congressional committees, each standing 
 committee with jurisdiction under the rules of the House of 
 Representatives or the Senate to report a bill to amend the 
 provision of law under which the rule is to be promulgated, and 
 the Comptroller General, a notification regarding such 
 determination by the Director that includes--
        (A) the information provided by the head of the 
 agency to the Director under paragraph

    (2)
        (A) with 
 respect to such rule; and
        (B) a reasoned statement of the basis and purpose 
 of such determination.
            (c) Statement Regarding Additional Unfunded Regulatory Costs.--In 
publishing a general notice of a final rule, the head of an agency 
shall include in such notice a statement that includes--

    (1) whether the rule will result in the amount of 
 additional unfunded regulatory costs imposed by the agency 
 during the fiscal year in which the rule is finalized to exceed 
 a limit established under subsection

    (a)

    (1)
        (A) , notwithstanding 
 any requirement established by the Director pursuant to 
 subsection

    (a)

    (1)
            (C) ; and

    (2) in the case that the rule will result in the amount of 
 additional unfunded regulatory costs imposed by the agency 
 during the fiscal year in which the rule is finalized to exceed 
 a limit established under subsection

    (a)

    (1)
        (A) , notwithstanding 
 any requirement established by the Director pursuant to 
 subsection

    (a)

    (1)
            (C) --
        (A) by how much the limit will be exceeded as a 
 result of the rule;
        (B) a justification for exceeding such limit as a 
 result of the rule;
            (C) an identification of any requirement 
 established by the Director pursuant to subsection

    (a)

    (1)
            (C) to avoid exceeding such limit as a result of 
 such rule;
            (D) whether the agency identified or considered any 
 alternatives to the rule, or any requirement 
 established by the Director pursuant to subsection

    (a)

    (1)
            (C) that would have resulted in the imposition of 
 a lesser amount of additional unfunded regulatory 
 costs, and if so, how much less such amount would have 
 been;
        (E) that the head of the agency submitted a 
 notification to the Director under subsection

    (b)

    (2) ; 
 and
        (F) the determinations made by the Director under 
 subsection

    (b)

    (3) with respect to such rule.
            (d) Judicial Review.--

    (1) In general.--A person that is aggrieved by agency 
 action regarding a rule that is prohibited under the provisions 
 of this section from being finalized or taking effect is 
 entitled to judicial review of whether the agency complied with 
 this section.

    (2) Scope of review.--Chapter 7 of title 5, United States 
 Code, shall govern the scope of judicial review under paragraph

    (1) .

    (3) Jurisdiction.--Each court that has jurisdiction to 
 review a rule for compliance with 

section 553 of title 5, 
 United States Code, or under any other provision of law, shall 
 have jurisdiction to review a claim brought under paragraph

    (1) .

    (4) Relief available.--In granting relief in an action 
 under this section, a court shall order the agency that 
 finalized or treated as in effect the rule that is under review 
 to take remedial action consistent with chapter 7 of title 5, 
 United States Code.

    (e) Associate Administrator for Regulatory Budgeting.--

    (1) Establishment of position.--

Section 3503 of title 44, 
 United States Code, is amended by adding at the end the 
 following new subsection:
 ``
            (c) Associate Administrator for Regulatory Budgeting.--
 ``

    (1) Establishment.--There is established an Associate 
 Administrator for Regulatory Budgeting within the Office of 
 Information and Regulatory Affairs of the Office of Management 
 and Budget, who is responsible for the oversight and 
 coordination of the implementation of 

section 2 of the REG 
 Budgeting Act of 2025.
 ``

    (2) Appointment and pay.--The position of Associate 
 Administrator established under paragraph

    (1) shall be 
 appointed by the President, shall be a position in the excepted 
 service, and shall be compensated at the rate of basic pay for 
 level IV of the Executive Schedule (

section 5315 of title 
 5).''.

    (2) First appointment of associate administrator for 
 regulatory budgeting.--Not later than 30 days after the date of 
 the enactment of this section, the President shall appoint the 
 first Associate Administrator for Regulatory Budgeting 
 established under 

section 3503
            (c) of title 44, United States 
 Code, as added by paragraph

    (1) .

    (3) Guidelines.--Not later than 90 days after the date of 
 the enactment of this section, the Associate Administrator for 
 Regulatory Budgeting shall issue guidelines for agencies to 
 ensure agencies meet the requirements of this section in a 
 consistent manner.

    (f) Annual Report.--On or before October 30 of each fiscal year, 
the Director shall submit to the appropriate congressional committees a 
report on the administration by the Director of the limits established 
under subsection

    (a)

    (1)
        (A) for the prior fiscal year, including--

    (1) whether the total amount of additional unfunded 
 regulatory costs imposed by all agencies in the prior fiscal 
 year met or exceeded the limit established under clause
            (i) of 
 such subsection;

    (2) whether the total amount of additional unfunded 
 regulatory costs imposed by the head of each agency in the 
 prior fiscal year met or exceeded the limit established for 
 such costs under clause
            (ii) of such subsection;

    (3) a detailed statement that--
        (A) identifies by how much, and as a result of 
 finalizing which rule or rules, any such limit was 
 exceeded; and
        (B) includes a justification for exceeding any such 
 limit as a result of finalizing such rule or rules; and

    (4) a list of each rule with respect to which the Director 
 determined under subsection

    (b)

    (3)
        (B) that the Director agreed 
 with a determination by the head of an agency to finalize the 
 rule notwithstanding a limit established under subsection

    (a)

    (1)
        (A) .

    (g) Exemption for Monetary 

=== Policy ===
-This section shall not apply to 
a rule that concerns monetary policy proposed or implemented by the 
Board of Governors of the Federal Reserve System or the Federal Open 
Market Committee.

    (h) 

=== Definitions. ===
-In this section:

    (1) Additional unfunded regulatory cost.--The term 
 ``additional unfunded regulatory cost'' means an unfunded 
 regulatory cost that had not been required to be incurred by 
 any individual or entity as a result of a Federal mandate 
 imposed by rule on an individual or entity during any preceding 
 fiscal year.

    (2) Agency.--The term ``agency'' has the meaning given that 
 term in 

section 551

    (1) of title 5, United States Code.

    (3) Appropriate congressional committees.--The term 
 ``appropriate congressional committees'' means--
        (A) the Committee on Oversight and Government 
 Reform of the House of Representatives; and
        (B) the Committee on Homeland Security and 
 Governmental Affairs of the Senate.

    (4) Cost.--The term ``cost'' means--
        (A) a direct cost; or
        (B) a quantifiable cost that can be estimated using 
 the methods and concepts described in Office of 
 Management and Budget Circular A-4 issued on September 
 17, 2003.

    (5) Cumulative unfunded regulatory costs.--The term 
 ``cumulative unfunded regulatory costs'' means the aggregate 
 amount of all unfunded regulatory costs imposed during all 
 preceding fiscal years.

    (6) Director.--The term ``Director'' means the Director of 
 the Office of Management and Budget.

    (7) Rule.--The term ``rule'' has the meaning given such 
 term in 

section 551 of title 5, United States Code.

    (8) Unfunded regulatory cost.--The term ``unfunded 
 regulatory cost'' means a cost required to be incurred by an 
 individual or entity as a result of a Federal mandate imposed 
 by rule on an individual or entity.
 <all>