S. 4151

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4151 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
2d Session
S. 4151

To amend the Unfunded Mandates Reform Act of 1995 to provide for 
regulatory impact analyses for certain rules, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

March 19, 2026

Mrs. Fischer (for herself and Mr. Lankford) introduced the following 
bill; which was read twice and referred to the Committee on Homeland 
Security and Governmental Affairs

_______________________________________________________________________

A BILL

To amend the Unfunded Mandates Reform Act of 1995 to provide for 
regulatory impact analyses for certain rules, 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 ``Unfunded Mandates Accountability and 
Transparency Act of 2026''.

SEC. 2. REGULATORY IMPACT ANALYSES FOR CERTAIN RULES.

The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.) is 
amended--
(1) by striking ``tribal'' each place that term appears and 
inserting ``Tribal'';
(2) in section 3 (2 U.S.C. 1502)--
(A) in paragraph (1), by striking ``and'' at the 
end;
(B) in paragraph (2), by striking the period at the 
end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) the term `major rule' means a rule, as defined in 
section 551 of title 5, United States Code, that the 
Administrator of the Office of Information and Regulatory 
Affairs determines is likely to cause--
``(A) an annual effect on the economy of 
$100,000,000 or more, adjusted once every 5 years to 
reflect increases in the Consumer Price Index for All 
Urban Consumers, as published by the Bureau of Labor 
Statistics of the Department of Labor;
``(B) a major increase in costs or prices for 
consumers, individual industries, Federal, State, 
local, or Tribal government agencies, or geographic 
regions; or
``(C) significant adverse effects on competition, 
employment, investment, productivity, innovation, 
public health and safety, or the ability of United 
States-based enterprises to compete with foreign-based 
enterprises in domestic and export markets.''; and
(3) in section 202 (2 U.S.C. 1532)--
(A) by striking the section heading and inserting 
``regulatory impact analyses for certain rules.'';
(B) by redesignating subsections (b) and (c) as 
subsections (d) and (e), respectively;
(C) by striking subsection (a) and inserting the 
following:
``(a) Definition of Cost.--In this section, the term `cost' means 
the cost of compliance and any reasonably foreseeable indirect costs, 
including revenues lost, as a result of a major rule of an agency that 
is subject to this section.
``(b) Regulatory Impact Analyses.--
``(1) Requirement.--Before promulgating any proposed or 
final major rule, the agency promulgating the major rule shall 
prepare and publish in the Federal Register an initial and 
final regulatory impact analysis with respect to the major 
rule.
``(2) Initial regulatory impact analysis.--An initial 
regulatory impact analysis required under paragraph (1) shall--
``(A) accompany the notice of proposed rulemaking 
with respect to the major rule that is the subject of 
the analysis; and
``(B) be open to public comment.
``(3) Final regulatory impact analysis.--A final regulatory 
impact analysis required under paragraph (1) shall accompany 
the final major rule that is the subject of the analysis.
``(c) Content.--Each initial and final regulatory impact analysis 
prepared and published under subsection (b) shall include, with respect 
to the major rule that is the subject of the analysis--
``(1)(A) an analysis of the anticipated benefits and costs 
of the major rule, which shall be quantified to the extent 
feasible;
``(B) an analysis of the benefits and costs of a reasonable 
number of regulatory alternatives within the range of the 
discretion of the agency under the statute authorizing the 
major rule, including alternatives that--
``(i) use incentives and market-based means to 
encourage the desired behavior;
``(ii) provide information based upon which the 
public can make choices; or
``(iii) employ other flexible regulatory options 
that permit the greatest flexibility in achieving the 
objectives of the statute authorizing the major rule; 
and
``(C) an explanation of how the major rule complies with 
the requirements of section 205;
``(2) an assessment of the extent to which--
``(A) the costs to State, local, and Tribal 
governments may be paid with Federal financial 
assistance (or otherwise paid for by the Federal 
Government); and
``(B) Federal resources are available to carry out 
the major rule;
``(3) estimates of--
``(A) any disproportionate budgetary effects of the 
major rule upon any particular--
``(i) regions of the United States;
``(ii) State, local, or Tribal governments;
``(iii) types of communities, including 
urban or rural communities; or
``(iv) segments of the private sector; and
``(B) the effect of the major rule on job creation 
or job loss, which shall be quantified to the extent 
feasible; and
``(4)(A) a description of the extent of the prior 
consultation of the agency under section 204 with elected 
representatives of each affected State, local, or Tribal 
government;
``(B) a summary of the comments and concerns that were 
presented to the agency orally or in writing by State, local, 
or Tribal governments; and
``(C) a summary of the evaluation by the agency of the 
comments and concerns described in subparagraph (B).'';
(D) in subsection (d), as so redesignated, by 
striking ``a statement under subsection (a) is 
required, the agency shall include in the promulgation 
a summary of the information contained in the 
statement'' and inserting ``an analysis under 
subsection (b) is required, the agency promulgating the 
major rule shall include in the promulgation a summary 
of the information contained in the analysis''; and
(E) in subsection (e), as so redesignated, by 
striking ``any statement required under subsection (a) 
in conjunction with or as a part of any other statement 
or analysis, if the statement or analysis satisfies the 
provisions of subsection (a)'' and inserting ``any 
analysis required under subsection (b) in conjunction 
with, or as a part of, any other analysis if the other 
analysis satisfies the requirements of subsections (b) 
and (c)''.

SEC. 3. ENHANCED STAKEHOLDER CONSULTATION.

Section 204 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1534) is amended--
(1) in the section heading, by inserting ``and private 
sector'' before ``input'';
(2) in subsection (a)--
(A) by inserting ``, and impacted parties within 
the private sector (including small businesses),'' 
after ``on their behalf)''; and
(B) by striking ``Federal intergovernmental 
mandates'' and inserting ``Federal mandates''; and
(3) by amending subsection (c) to read as follows:
``(c) Guidelines.--For appropriate implementation of subsections 
(a) and (b) consistent with applicable laws and regulations, the 
following guidelines shall be followed:
``(1) Consultations described in those subsections shall 
take place as early as possible, before issuance of a notice of 
proposed rulemaking, continue through the final rule stage, and 
be integrated explicitly into the rulemaking process.
``(2) Agencies shall consult with a wide variety of State, 
local, and Tribal officials and impacted parties within the 
private sector (including small businesses). Geographic, 
political, and other factors that may differentiate varying 
points of view should be considered.
``(3) Agencies should estimate benefits and costs to assist 
with the consultations described in those subsections. The 
scope of the consultation should reflect the cost and 
significance of the Federal mandate being considered.
``(4) Agencies shall, to the extent practicable--
``(A) seek out the views of State, local, and 
Tribal governments, and impacted parties within the 
private sector (including small businesses), on costs, 
benefits, and risks with respect to the applicable 
regulatory proposal; and
``(B) solicit ideas about alternative methods of 
compliance and potential flexibilities, and input on 
whether the applicable Federal regulation will 
harmonize with and not duplicate similar laws in other 
levels of government.
``(5) Consultations described in those subsections shall 
address the cumulative impact of regulations on the affected 
entities.
``(6) Agencies may accept electronic submissions of 
comments by relevant parties but may not use those comments as 
the sole method of satisfying the guidelines in this 
subsection.''.

SEC. 4. MAXIMIZE NET BENEFITS OR PROVIDE EXPLANATION.

(a) In General.--Title II of the Unfunded Mandates Reform Act of 
1995 (2 U.S.C. 1531 et seq.) is amended by striking section 205 (2 
U.S.C. 1535) and inserting the following:

``SEC. 205. MAXIMIZE NET BENEFITS.

``(a) Definition of Cost.--In this section, the term `cost' has the 
meaning given the term in section 202(a).
``(b) Requirement.--Before promulgating any proposed or final major 
rule for which a regulatory impact analysis is required under section 
202, an agency shall, from the alternatives identified and considered 
under section 202(c)(1)(B), select the alternative that maximizes net 
benefits, taking into consideration only the costs and benefits that 
arise within the scope of the statutory provision that authorizes the 
rulemaking.
``(c) Exceptions.--An agency may adopt an alternative other than as 
required under subsection (b) only if--
``(1) the Administrator of the Office of Information and 
Regulatory Affairs approves the adoption by the agency of the 
alternative; and
``(2) the alternative is adopted to--
``(A) account for costs or benefits that cannot be 
quantified, including costs or benefits relating to 
constitutional or civil rights, if the agency 
identifies all such costs and benefits and explains why 
those costs and benefits justify the adoption of the 
alternative; or
``(B) achieve additional benefits or cost 
reductions, if the agency--
``(i) identifies--
``(I) all such additional benefits 
and the associated costs of those 
benefits; and
``(II) all such cost reductions and 
the associated benefits of those cost 
reductions; and
``(ii) explains why--
``(I) the additional benefits 
justify the additional costs; or
``(II) the additional cost 
reductions justify any benefits 
foregone.''.
(b) Conforming Amendments.--Section 206 of the Unfunded Mandates 
Reform Act of 1995 (2 U.S.C. 1536) is amended--
(1) by striking ``statements'' each place the term appears 
and inserting ``analysis''; and
(2) in paragraph (2), by striking ``statement'' and 
inserting ``analysis''.

SEC. 5. NEW AUTHORITIES AND RESPONSIBILITIES FOR OFFICE OF INFORMATION 
AND REGULATORY AFFAIRS.

Section 208 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1538) is amended to read as follows:

``SEC. 208. OFFICE OF INFORMATION AND REGULATORY AFFAIRS 
RESPONSIBILITIES.

``(a) In General.--The Administrator of the Office of Information 
and Regulatory Affairs (in this section referred to as the 
`Administrator') shall provide meaningful guidance and oversight so 
that the major rules of an agency for which a regulatory impact 
analysis is required under section 202--
``(1) is consistent with the principles and requirements of 
this title, as well as other applicable laws; and
``(2) does not conflict with the policies or actions of 
another agency.
``(b) Notification.--If the Administrator determines that a major 
rule of an agency for which a regulatory impact analysis is required 
under section 202 does not comply with the principles and requirements 
of this title, is not consistent with other applicable laws, or 
conflicts with the policies or actions of another agency, the 
Administrator shall--
``(1) identify areas of noncompliance;
``(2) notify the agency; and
``(3) request that the agency comply before the agency 
finalizes the major rule.
``(c) Annual Statements to Congress on Agency Compliance.--The 
Administrator shall submit to Congress, including the Committee on 
Homeland Security and Governmental Affairs of the Senate and the 
Committee on Oversight and Government Reform of the House of 
Representatives, an annual written report that, for the 1-year period 
preceding the submission of the report--
``(1) details compliance by each agency with the 
requirements of this title that relate to major rules for which 
a regulatory impact analysis is required by section 202, 
including activities undertaken at the request of the 
Administrator to improve compliance; and
``(2) contains an appendix detailing compliance by each 
agency with section 204.''.

SEC. 6. INITIATION OF RULEMAKING.

The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.) is 
amended--
(1) by redesignating section 209 (2 U.S.C. 1531 note) as 
section 210; and
(2) by inserting after section 208 (2 U.S.C. 1538) the 
following:

``SEC. 209. INITIATION OF RULEMAKING FOR MAJOR RULES.

``When an agency determines to initiate a rulemaking that may 
result in a major rule, the agency shall--
``(1) establish an electronic docket for that rulemaking, 
which may have a physical counterpart; and
``(2) publish a notice of initiation of rulemaking in the 
Federal Register, which shall--
``(A) briefly describe the subject and objectives 
of, and the problem to be solved by, the major rule;
``(B) refer to the legal authority under which the 
major rule would be proposed, including the specific 
statutory provision that authorizes the rulemaking;
``(C) invite interested persons to propose 
alternatives and other ideas regarding how best to 
accomplish the objectives of the agency in the most 
effective manner;
``(D) indicate how interested persons may submit 
written material for the docket; and
``(E) appear in the Federal Register not later than 
90 days before the date on which the agency publishes a 
notice of proposed rulemaking for the major rule.''.

SEC. 7. INCLUSION OF APPLICATION TO INDEPENDENT REGULATORY AGENCIES.

(a) In General.--Section 421(1) of the Congressional Budget Act of 
1974 (2 U.S.C. 658(1)) is amended by striking ``, but does not include 
independent regulatory agencies''.
(b) Exemption for Monetary Policy.--The Unfunded Mandates Reform 
Act of 1995 (2 U.S.C. 1501 et seq.) is amended by inserting after 
section 5 (2 U.S.C. 1504) the following:

``SEC. 6. EXEMPTION FOR MONETARY POLICY.

``Nothing in title II, III, or IV shall apply to rules that concern 
monetary policy proposed or implemented by the Board of Governors of 
the Federal Reserve System or the Federal Open Market Committee.''.

SEC. 8. JUDICIAL REVIEW.

Title IV of the Unfunded Mandates Reform Act of 1995 is amended by 
striking section 401 (2 U.S.C. 1571) and inserting the following:

``SEC. 401. JUDICIAL REVIEW.

``(a) In General.--A person that is aggrieved by final agency 
action in adopting a major rule that is subject to section 202 is 
entitled to judicial review of whether the agency complied with section 
202(b), 202(c)(1), or 205 with respect to the rule.
``(b) Scope of Review.--Chapter 7 of title 5, United States Code, 
shall govern the scope of judicial review under subsection (a).
``(c) 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 subsection (a).
``(d) Relief Available.--In granting relief in an action under this 
section, a court shall order the agency that promulgated the major rule 
that is under review to take remedial action consistent with chapter 7 
of title 5, United States Code.''.

SEC. 9. APPLYING SUBSTANTIVE POINT OF ORDER TO PRIVATE SECTOR MANDATES.

Section 425(a)(2) of the Congressional Budget Act of 1974 (2 U.S.C. 
658d(a)(2)) is amended, in the matter preceding subparagraph (A)--
(1) by striking ``Federal intergovernmental mandates'' and 
inserting ``Federal mandates''; and
(2) by striking ``section 424(a)(1)'' and inserting 
``subsection (a)(1) or (b)(1) of section 424''.

SEC. 10. EFFECTIVE DATE.

Sections 2, 3, 4, and 6 of this Act and the amendments made by 
those sections shall take effect on the date that is 120 days after the 
date of enactment of this Act.
<all>