H.R. 3279

[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>