[House Report 119-446]
[From the U.S. Government Publishing Office]


119th Congress }                                        { Rept. 119-446
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                        {    Part 1

=======================================================================



 
     UNFUNDED MANDATES ACCOUNTABILITY AND TRANSPARENCY ACT OF 2025

                           ----------------
                                
January 13, 2026.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                           ----------------
                                
   Mr. Comer, from the Committee on Oversight and Government Reform, 
                        submitted the following


                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 580]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 580) to amend the Unfunded Mandates 
Reform Act of 1995 to provide for regulatory impact analyses 
for certain rules, and for other purposes, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Summary and Purpose of Legislation...............................     6
Background and Need for Legislation..............................     6
Section-by-Section Analysis......................................    11
Legislative History..............................................    12
Committee Consideration..........................................    12
Roll Call Votes..................................................    12
Explanation of Amendments........................................    24
List of Related Committee Hearings...............................    24
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    25
Statement of General Performance Goals and Objectives............    25
Application of Law to the Legislative Branch.....................    25
Duplication of Federal Programs..................................    25
Federal Advisory Committee Act Statement.........................    25
Unfunded Mandates Reform Act Statement...........................    25
Earmark Identification...........................................    25
Committee Cost Estimate..........................................    26
New Budget Authority and Congressional Budget Office Cost 
  Estimate.......................................................    26
Changes in Existing Law Made by the Bill, as Reported............    30
Minority Views...................................................    47

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

        This Act may be cited as the ``Unfunded Mandates Accountability 
        and Transparency Act of 2025''.

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 the 
                following:

``SEC. 202. 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, provided that 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 
                statement or analysis if the other statement or 
                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 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 these consultations. 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; and
                  ``(B) solicit ideas about alternative methods of 
                compliance and potential flexibilities, and input on 
                whether the Federal regulation will harmonize with and 
                not duplicate similar laws in other levels of 
                government.
          ``(5) Consultations 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.

  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 related to 
                constitutional or civil rights, provided that 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, 
                provided that 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.''.

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) are consistent with the principles and requirements of 
        this title, as well as other applicable laws; and
          ``(2) and do not conflict with the policies or actions of 
        another agency.
  ``(b) Notification.--If the Administrator determines that the major 
rules of an agency for which a regulatory impact analysis is required 
under section 202 do not comply with the principles and requirements of 
this title, are not consistent with other applicable laws, or conflict 
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 concerned.
  ``(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 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. 1548) 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 
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--
          (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 3, 4, 5, and 7 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.

                   Summary and Purpose of Legislation

    H.R. 580 amends the Unfunded Mandates Reform Act of 1995 
(UMRA) to lower the burdens imposed by federal regulatory 
mandates upon states, local governments, tribal governments, 
and the private sector; increase public participation in, and 
the accountability and transparency of, the federal regulatory 
process; and enhance congressional tools to check against the 
imposition of excessively burdensome regulatory mandates upon 
the private sector. The bill requires federal agencies to 
prepare, take public comment on, and publish regulatory impact 
analyses--including analyses of costs, benefits, alternatives, 
disproportionate impacts, and effects on jobs--for major rules 
that mandate economic impacts of $100 million or more, present 
major increases in costs or prices, or have significant adverse 
effects on competition, employment, or markets. Initial 
assessments must be published in the Federal Register for 
public comment when agencies issue notices of proposed 
rulemaking; final analyses must accompany notices of final 
rulemaking. The bill also requires earlier and enhanced public 
participation in major rulemakings; generally requires final 
major rules to lower costs by maximizing net benefits; exposes 
to substantive points of order under the Congressional Budget 
Act of 1974 legislation that would impose private sector 
mandates; and brings independent agencies under UMRA's 
requirements.

                  Background and Need for Legislation

    The current estimated burden of federal regulation--i.e., 
unfunded federal regulatory mandates--exceeds $2 trillion, as 
calculated conservatively by the Competitive Enterprise 
Institute (CEI).\1\ As CEI has observed, ``if it were a 
country, U.S. regulation would be the world's eighth-largest 
economy (not counting the United States itself), ranking behind 
the Russian Federation and ahead of Canada.''\2\
---------------------------------------------------------------------------
    \1\Clyde Wayne Crews Jr, Ten Thousand Commandments: An Annual 
Snapshot of the Federal Regulatory State, Competitive Enterprise Inst., 
at 6 (2025), available at https://cei.org/wp-content/uploads/2025/04/
10K_2025_v5.pdf.
    \2\Id. at 7.
---------------------------------------------------------------------------
    A substantial portion of this burden falls upon state, 
local and tribal governments; most of it falls on private 
sector entities.In the end, these burdens fall upon taxpayers 
and consumers, to whom these crushing costs ultimately are 
passed. They amount to a stunning figure for each U.S. 
household. CEI estimates that ``U.S. households pay on average 
$16,016 annually in a hidden regulatory tax, which consumes 16 
percent of income and 21 percent of household expenses.''\3\
---------------------------------------------------------------------------
    \3\Id. at 6.
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    For several terms of Congress, reform to lower these 
burdens and improve the accountability and transparency of the 
federal rulemaking process has been pursued through legislation 
introduced by Representative Virginia Foxx (R-NC) to strengthen 
the Unfunded Mandates Reform Act of 1995. The original act was 
enacted to curb the federal government from imposing costly 
unfunded mandates on states, localities and tribal governments 
and was later amended to protect the private sector from costly 
new federal mandates.\4\ Bills to strengthen the original act 
began with the Unfunded Mandates Information and Transparency 
Act, first introduced during the 110th Congress, and have 
continued through the successive iterations of that bill and, 
later, the Unfunded Mandates Accountability and Transparency 
Act, first introduced during the 116th Congress.\5\ The 
Committee incorporates by reference its prior reports regarding 
these bills and the need for them.\6\
---------------------------------------------------------------------------
    \4\Pub. L. 104-4, codified at 2 U.S.C. sec. 1501, et seq.
    \5\See H.R. 6964 (110th Congress); H.R. 2255 (111th Congress); H.R. 
373 (112th Congress); H.R. 899 (113th Congress); H.R. 50 (114th 
Congress); H.R. 50 (115th Congress); H.R. 300 (116th Congress); H.R. 
7332 (116th Congress); H.R. 701 (117th Congress); H.R. 3230 (118th 
Congress); and the instant legislation, H.R. 580 (119th Congress).
    \6\H. Rept. 112-483 (May 16, 2012); H. Rept. 113-352 (Feb. 14, 
2014); H. Rept. 114-011 (Feb. 2, 2015); H. Rept. 115-798 (June 29, 
2018); and H. Rpt. 118-906 (Dec. 18, 2024).
---------------------------------------------------------------------------
    Despite the necessity of this legislation in preceding 
years, the Biden Administration's aggressive regulatory 
approach demonstrated that this legislation is increasingly 
necessary. Upon assuming office on January 20, 2021, the Biden 
Administration pursued a ``whole-of-government'' regulatory 
blowout, substantially implemented through the mandates of 
several key Executive Orders (E.O.), such as E.O. 13990 and 
E.O. 14008 focused on climate, E.O. 14025 focused on 
unionization, and E.O. 14036 focused on competition.\7\ 
Agencies across the government created new, costly, unfunded 
mandates through new regulations, particularly major 
regulations.\8\
---------------------------------------------------------------------------
    \7\86 Fed. Reg. 7037 (Jan. 20, 2021); 86 Fed. Reg. 22829 (Apr. 29, 
2021); and 86 Fed. Reg. 36987 (July 14, 2021).
    \8\H.R. 580 defines a major regulation as one 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.''
---------------------------------------------------------------------------
    According to the Foundation for Government Accountability 
(FGA), President Biden's administration approved more than $200 
billion in new regulatory costs during its first year in 
office, more than four times what President Obama's approved 
during the same period.\9\ For comparison, estimated new 
regulatory costs for Fiscal Year (FY) 2021 exceeded the FY 2021 
congressional discretionary budget by about $400 billion.\10\ 
According to the American Action Forum (AAF), the regulatory 
burdens the Biden Administration imposed in its first two years 
vastly exceeded those imposed by the two previous 
administrations, with ``$318 billion in total costs and more 
than 218 million hours of paperwork'' from just those rules for 
which cost or paperwork estimates were prepared, as can be seen 
in the following table compiled by AAF:\11\
---------------------------------------------------------------------------
    \9\FGA, See for Yourself: Biden's Regulatory Spree is Out of 
Control, The Found. For Gov't Accountability (May 2, 2023), available 
at https://thefga.org/one-pagers/see-for-yourself-bidens-regulatory-
spree-is-out-of-control.
    \10\Id.
    \11\Dan Goldbeck, Tracking the Regulatory Record of Recent 
Administrations at the Halfway Point, American Action Forum (Feb. 7, 
2023), available at https://www.americanactionforum.org/insight/
tracking-the-regulatory-record-of-recent-administrations-at-the-
halfway-point.

----------------------------------------------------------------------------------------------------------------
                   Adminstration                       Rules       Costs ($ Billions)       Paperwork (hours)
----------------------------------------------------------------------------------------------------------------
Biden..............................................        517                    318.4              218,052,445
Trump..............................................        564                     -2.0               18,600,331
Obama..............................................        740                    208.7              131,258,750
----------------------------------------------------------------------------------------------------------------

    AAF estimated that the costs of all new federal regulations 
promulgated between 2021 and November 1, 2024, as the Biden 
Administration was drawing to a close, totaled a staggering 
$1.8 trillion, as reflected in the following table:\12\
---------------------------------------------------------------------------
    \12\Tracking the Administrations 11.1.24, American Action Forum 
(last accessed June 25, 2025), available at https://
www.americanactionforum.org/week-in-regulation/an-active-end-to-
october/tracking-the-administrations-1-11-24/.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    By the end of 2024, the Biden Administration had pushed the 
total up even further, to $1.9 trillion.\13\
---------------------------------------------------------------------------
    \13\Regulation Rodeo: Explore the Data, American Action Forum (last 
accessed June 25, 2025), available at https://regrodeo.com/.
---------------------------------------------------------------------------
    This rapid growth in power, authority, and regulatory costs 
from the Executive Branch has significant impacts, not only for 
those upon whom unfunded regulatory mandates are imposed 
directly, but for consumers everywhere. The most impacted are 
low-income communities (e.g., through increased electricity and 
vehicle costs), retirees, and investors (e.g., through the 
Biden Administration's climate disclosure and Environmental, 
Social, and Governance (ESG) rules impacting returns).
    The increase in unfunded regulatory mandates under the 
Biden Administration occurred on top of the massive, cumulative 
federal regulatory burdens already imposed over preceding 
decades. Those burdens are portrayed in the following graph 
provided to the Committee on the Budget in Congressional 
testimony from AAF:\14\
---------------------------------------------------------------------------
    \14\Douglas Holtz-Eakin, Testimony on: Regulatory Burdens and 
Economic Growth, American Action Forum (May 24, 2023), available at 
https://www.americanactionforum.org/testimony/testimony-on-regulatory-
burdens-and-economic-growth/.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    Small businesses--the backbone of American communities and 
job creation--have borne much of both this cumulative burden 
and the brunt of the Biden Administration's regulatory 
overreach. Protection of small businesses from regulatory 
overreach is especially important. A study performed in 2014, 
for example, showed that small manufacturers already bear more 
than three times the average regulatory burden per employee 
than does the average U.S. business.\15\
---------------------------------------------------------------------------
    \15\W. Mark Crain and Nicole V. Crain, The Cost of Regulation to 
the U.S. Economy, Manufacturing, and Small Business: a Report to the 
National Association of Manufacturers at 2-3 (2014).
---------------------------------------------------------------------------
    The level of Biden Administration overreach was harmful 
enough but adding to the problem were the numerous major 
``transformative'' regulations the Administration pursued under 
President Biden's climate and other ``whole-of-government'' 
executive orders. These rules represented nationwide industrial 
policymaking of the kind rarely seen since the New Deal. 
Leading the way on this front were major new environmental 
rules from the U.S. Environmental Protection Agency (EPA), 
including, for example, the following sectors:
           Transportation--forcing by 2032 a massive 
        shift of light-, medium-, and heavy-duty vehicles from 
        use of internal combustion engines to fully electric 
        battery power;\16\
---------------------------------------------------------------------------
    \16\Multi-Pollutant Emissions Standards for Model Years 2027 and 
Later Light-Duty and Medium-Duty Vehicles, 89 Fed. Reg. 50234 (June 13, 
2024).
---------------------------------------------------------------------------
           Manufacturing--revising National Ambient Air 
        Quality Standards for particulate matter (e.g., soot) 
        down to levels that could force 40 percent of the U.S. 
        population into Clean Air Act non-attainment areas, 
        meaning development for new manufacturing and other 
        purposes that generate emissions in those areas would 
        be severely restrained;\17\
---------------------------------------------------------------------------
    \17\Reconsideration of the National Ambient Air Quality Act 
Standards for Particulate Matter, 89 Fed. Reg. 6202 (Mar. 6, 2024).
---------------------------------------------------------------------------
           Water and Land Use--redefining ``navigable 
        waters''' under the Clean Water Act to vastly extend 
        EPA permitting requirements to lands throughout the 
        country;\18\ and
---------------------------------------------------------------------------
    \18\Revised Definition of ``Waters of the United States,'' 88 Fed. 
Reg. 3004 (Jan. 18, 2023).
---------------------------------------------------------------------------
           Power Generation--clamping down on emissions 
        from fossil-fuel-fired power plants to force out of the 
        market electricity generation from fossil fuels.\19\
---------------------------------------------------------------------------
    \19\New Source Performance Standards for Greenhouse Gas Emissions 
from New, Modified, and Reconstructed Fossil Fuel-Fired Electric 
Generating Units; Emission Guidelines for Greenhouse Gas Emissions from 
Existing Fossil Fuel-Fired Electric Generating Unites; and Repeal of 
the Affordable Clean Energy Rule, 89 Fed, Reg. 39798 (May 9, 2024).
---------------------------------------------------------------------------
    The Biden EPA was not the only agency pursuing such 
transformational rules. The Securities and Exchange Commission 
(SEC) and the Federal Acquisition Regulatory (FAR) Council 
during the Biden Administration pursued greenhouse gas emission 
disclosure rules to force ESG climate-action agendas across 
publicly traded companies and federal contractors.\20\ The 
Biden Department of Energy (DOE) pursued a host of restrictive 
energy efficiency standards for gas-fired home appliances as 
part of its contribution to the Administration's whole-of-
government offensive against fossil fuels.\21\ And the Biden 
Administration pursued regulations in the federal contracting 
system, not only to push ESG climate-disclosure rules into the 
economy, but to put a massive thumb on the scale to 
discriminate in favor of union labor through a rule to require 
union labor on major federal and federally-funded construction 
projects.\22\
---------------------------------------------------------------------------
    \20\See Federal Acquisition Regulation: Disclosure of Greenhouse 
Gas Emissions and Climate-Related Financial Risk, 87 Fed. Reg. 68312 
(Nov. 14, 2022); see also The Enhancement and Standardization of 
Climate-Related Disclosures for Investors, 87 Fed. Reg. 21334 (April 
11, 2022).
    \21\See, e.g., Energy Conservation Program: Energy Conservation 
Standards for Consumer Conventional Cooking Products, 88 Fed. Reg. 6818 
(Feb. 1, 2023).
    \22\Federal Acquisition Regulation: Use of Project Labor Agreements 
for Federal Construction Projects, 88 Fed. Reg. 88708 (Dec. 23, 2023).
---------------------------------------------------------------------------
    Testimony received by the Committee indicates that, in just 
its first two years, the Biden Administration's new regulations 
imposed approximately $10,000 per U.S. household in new 
regulatory burdens.\23\ Still more alarming, the Biden 
Administration was predicted to be on a pace that could have, 
if the Administration had been given two full terms, resulted 
in approximately $60,000 per household in new regulatory 
costs.\24\ At the same time, witnesses before the Committee 
confirmed that the instant legislation, if enacted, could stem 
this regulatory tide by strengthening the Unfunded Mandates 
Reform Act of 1995, such as by improving agency analysis of the 
costs of proposed new regulatory mandates and strengthening 
judicial review.\25\ It has never been more important than now 
to pass the reforms contained in H.R. 580 to prevent the 
Executive Branch's unreasonable imposition of unfunded 
regulatory mandates.
---------------------------------------------------------------------------
    \23\Statement of Prof. Casey Mulligan, Univ. of Chicago, H. Comm. 
on Oversight and Accountability, Hearing on ``Death by a Thousand 
Regulations: The Biden Administration's Campaign to Bury America in Red 
Tape,'' at 4 (June 14, 2023).
    \24\Id.
    \25\Transcript, H. Comm. on Oversight and Accountability, Hearing 
on ``Death by a Thousand Regulations: The Biden Administration's 
Campaign to Bury America in Red Tape,'' at 39-41 (June 14, 2023); see 
also Statement of Adam J. White, Senior Fellow, American Enterprise 
Institute, and Co-Executive Director, Antonin Scalia Law School's C. 
Boyden Gray Center for Study of the Administrative State, H. Comm. on 
Oversight and Accountability, Hearing on ``Death by a Thousand 
Regulations: The Biden Administration's Campaign to Bury America in Red 
Tape,'' at 20 (June 14, 2023).
---------------------------------------------------------------------------

                      Section-by-Section Analysis


Section 1. Short title

    The short title is the ``Unfunded Mandates Accountability 
and Transparency Act of 2025''.

Section 2. Regulatory analyses for certain rules

    Requires initial and final Regulatory Impact Analyses 
(RIAs) for new major rules. RIAs must address costs, benefits, 
alternatives, disproportionate impacts on states, localities 
and tribal governments, and jobs impacts. Defines major rules 
consistently with 5 U.S.C. sec. 804 (Congressional Review Act), 
adding a five-year inflation adjuster.

Section 3. Enhanced stakeholder consultation

    Requires early stakeholder consultation (i.e., before 
issuance of notices of proposed rulemaking) on regulatory 
proposals containing significant federal mandates to states, 
localities, tribal governments or the private sector. 
Consultations must include representatives of states, 
localities, tribal governments, and the private sector, be 
informed by estimates of costs, benefits and risks, continue 
throughout the rulemaking process, and include consideration of 
alternative methods of compliance, cumulative regulatory 
impacts on affected entities, and whether federal regulation 
would harmonize with and not duplicate similar laws at other 
levels of government.

Section 4. Maximize net benefits or provide explanation

    For major rules, generally requires agencies to adopt the 
regulatory alternative that maximizes net benefits (i.e., 
achieves the greatest benefits at the lowest costs), 
considering only the costs and benefits within the scope of the 
statutory provision authorizing the rulemaking (i.e., excluding 
consideration of collateral benefits). Allows for exceptions, 
subject to the approval of the Administrator of the Office of 
Information and Regulatory Affairs, to account for costs or 
benefits that cannot be quantified (e.g., constitutional or 
civil rights) or to achieve additional benefits that can be 
cost-justified.

Section 5. New authorities and responsibilities for Office of 
        Information and Regulatory Affairs

    Requires the Office of Information and Regulatory Affairs 
(OIRA) to oversee whether major rules are consistent with the 
Act and other laws and do not conflict with other agencies' 
policies or actions. Requires OIRA to notify the agency and 
request compliance before a major rule is finalized if it 
determines the agency has not met these requirements. Requires 
OIRA to submit an annual report to Congress detailing agency 
compliance with sections 202 and 204 of the Unfunded Mandates 
Reform Act of 1995.

Section 6. Initiation of rulemaking

    Requires agencies to issue notices of initiation of 
rulemaking and take early public comment on alternatives that 
could accomplish agency goals when agencies determine to take 
action that may require major rules. Requires notices of 
initiation to be issued at least 90 days before any subsequent 
notices of proposed rulemaking. Requires establishment of 
electronic dockets for covered rulemakings.

Section 7. Inclusion of independent agencies

    Extends application of the Unfunded Mandates Reform Act of 
1995 to independent agencies. Exempts rules that concern 
monetary policy proposed or implemented by the Board of 
Governors of the Federal Reserve System or the Federal Open 
Market Committee.

Section 8. Judicial review

    Amends Title IV of UMRA (2 U.S.C. 1571) by replacing 
section 401 (Judicial Review) with a new section authorizing 
judicial review of agency compliance with the bill's 
requirements to analyze costs, benefits, and regulatory 
alternatives and choose the alternative that maximizes net 
benefits. Permits courts to order remedial action consistent 
with chapter 7 of title 5.

Section 9. Applying substantive point of order to private sector 
        mandates

    Amends sec. 425(a)(2) of the Congressional Budget Act of 
1974 to expose to substantive points of order legislation that 
would impose private sector mandates.

Section 10. Effective date

    Provides that sections 3, 4, 5, and 7 of the Act and the 
amendments made by those sections shall take effect on the date 
that is 120 days after the date of the Act's enactment.

                          Legislative History

    H.R. 580, the Unfunded Mandates Accountability and 
Transparency Act was introduced on January 21, 2025, by 
Representative Virginia Foxx (R-NC). The bill was referred to 
the Committee on Oversight and Government Reform, with the 
Committee on Rules, the Committee on the Budget, and the 
Committee on the Judiciary receiving secondary referrals. The 
following Representatives are cosponsors of the bill: Henry 
Cuellar (D-TX), Jared Golden (D-ME), Ashley Hinson (R-IA), and 
Pete Sessions (R-TX). The Committee on Oversight and Government 
Reform held hearings on February 5, February 26, April 1, April 
29, and May 20, 2025, used to develop or consider the bill. The 
Committee considered H.R. 580 at a business meeting on May 21, 
2025, and ordered the bill as amended favorably reported by a 
recorded vote.

                        Committee Consideration

    On May 21, 2025, the Committee met in open session and 
ordered the bill, H.R. 580, favorably reported with an 
amendment in the nature of a substitute, by a roll call vote of 
23-19, a quorum being present.

                            Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following roll call vote 
occurred during the Committee's consideration of H.R. 580:
    The roll call vote was on final passage of H.R. 580. The 
bill was agreed to in a recorded vote of 23-19.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                       Explanation of Amendments

    During Committee consideration of the bill, Representative 
James Comer (R-KY), Chairman of the Committee, offered an 
amendment in the nature of a substitute that made a certain 
technical change to the bill. The amendment in the nature of a 
substitute passed by voice vote.

                   List of Related Committee Hearings

    In accordance with House rule XIII, clause 3(c)(6), (1) the 
following hearing was used to develop or consider H.R. 580:
    On February 5, 2025, the Committee held a hearing titled 
``Rightsizing Government'' with the Hon. Kim Reynolds, 
Governor, State of Iowa; Mr. Thomas A. Schatz, President, 
Citizens Against Government Waste; and Prof. William G. Resh, 
Ph.D., Sol Price School of Public Policy and Management, 
University of Southern California.
    (2) The following related hearing was held:
    On February 26, 2025, the Committee held a hearing titled 
``Leading the Charge: Opportunities to Strengthen America's 
Energy Reliability'' with Mr. Alex Epstein, President and 
Founder, Center for Industrial Progress; Ms. Mandy Gunasekara, 
former Chief of Staff, U.S. Environmental Protection Agency; 
Mr. Alex Herrgott, Chief Executive Officer and President, the 
Permitting Institute; Dr. Rachel Cleetus, Policy Director, 
Climate and Energy Program, Union of Concerned Scientists.
    (3) The following related hearing was held:
    On April 1, 2025, the Committee held a hearing titled 
``America's AI Moonshot: The Economics of AI, Data Centers, and 
Power Consumption'' with Mr. Neil Chilson, Head of AI Policy, 
the Abundance Institute; Mr. Josh Levi, President, Data Center 
Coalition; Mr. Mark P. Mills, Executive Director, National 
Center for Energy Analytics; and Mr. Tyson Slocum, Energy 
Program Director, Public Citizen.
    (4) The following related hearing was held:
    On April 29, 2025, the Committee held a hearing titled 
``Made in the USA: Igniting the Industrial Renaissance of the 
United States'' with Mr. Kevin Czinger, Founder and Executive 
Chairman, Divergent 3D; Mr. Chris Power, Founder and Chief 
Executive Officer, Hadrian; Mr. Austin Bishop, Chief Executive 
Officer, New American Industrial Alliance; and Dr. Adm S. 
Hersh, Ph.D., Senior Economist, Economic Policy Institute.
    (5) The following related hearing was held:
    On May 20, 2025, the Committee held a hearing titled 
``Mandates, Meddling, and Mismanagement: The IRA's Threat to 
Energy and Medicine'' with Mr. Ben Lieberman, Senior Fellow, 
Competitive Enterprise Institute; Dr. Erin Trish, Ph.D., Co-
Director, USC Schaeffer Center and Associate Professor, 
Department of Pharmaceutical and Health Economics, USC Mann 
School of Pharmacy; Dr. William McBride, Ph.D., Chief Economist 
and Stephen J. Entin Fellow in Economics, Tax Foundation; and 
Dr. Emily Gee, Senior Vice President for Inclusive Growth, 
Center for American Progress.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the Background and Need for 
Legislation section above.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals or objectives of this bill are to lower the burdens 
imposed by federal regulatory mandates upon states, local 
governments, tribal governments, and the private sector; 
increase public participation in, and the accountability and 
transparency of, the federal regulatory process; and enhance 
congressional tools to check against the imposition of 
excessively burdensome regulatory mandates upon the private 
sector, and for other purposes.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill does not relate to employment or access to public 
services and accommodations in the legislative branch.

                    Duplication of Federal Programs

    In accordance with clause 3(c)(5) of rule XIII no provision 
of this bill establishes or reauthorizes a program of the 
Federal Government known to be duplicative of another Federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                Federal Advisory Committee Act Statement

    Pursuant to section 5(b) of Public Law 92-463 (5 U.S.C. 
1004(b)), the Federal Advisory Committee Act, the Committee 
finds that this Committee Print does not direct the 
establishment of an advisory committee.

                 Unfunded Mandates Reform Act Statement

    Pursuant to section 423 of the Congressional Budget Act of 
1974, the Committee has included a letter received from the 
Congressional Budget Office below.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the House of Representatives.

                        Committee Cost Estimate

    Pursuant to clause 3(d) of rule XIII, the Committee adopts 
as its own the cost estimate prepared by the Director of the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

   New Budget Authority and Congressional Budget Office Cost Estimate

    Pursuant to clause 3(d)(1) of House rule XIII, the cost 
estimate prepared by the Director of the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974 is as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    The bill would:
           Require agencies that promulgate any rule 
        with an annual economic effect of $100 million or more 
        to publish a regulatory impact analysis for that rule
           Require agencies that promulgate such rules 
        to undertake and report on cost-benefit analyses, 
        consultations with interested parties, and assessments 
        of alternatives to those rules
           Impose mandates on private-sector entities
    Estimated budgetary effects would mainly stem from:
           Increased analysis and reporting 
        requirements for which agencies would need additional 
        staff
           Increases in direct spending and decreases 
        in revenues for several fee-funded, independent 
        agencies and the Federal Reserve System to carry out 
        provisions of the bill
           Increases in costs for agencies that are 
        funded through annual appropriations to carry out the 
        provisions of the bill
    Areas of significant uncertainty include:
           Determining whether rules that are affected 
        because of the bill's requirements would have a net 
        cost or savings for the federal government
    Bill summary: H.R. 580 would require agencies that 
promulgate major rules--those with an annual economic effect of 
$100 million or more--to prepare and publish regulatory impact 
analyses that would accompany the notice of proposed rulemaking 
and the final rule. Additionally, the bill would limit some of 
the discretion agencies have over selecting an approach to that 
regulatory analysis. H.R. 580 also would codify some policies 
that are common practice or required under executive orders 
related to regulatory impact analyses.
    In addition, H.R. 580 would expand the role of the Office 
of Information and Regulatory Affairs (OIRA), within the Office 
of Management and Budget, and authorize OIRA to review and 
approve rules proposed by certain independent federal agencies. 
Under current law, most independent regulatory agencies are not 
required to submit regulatory impact analyses to OIRA.
    The bill would amend an existing Congressional rule to make 
legislation out of order if the private-sector mandate costs 
are in excess of a specific threshold. That rule is not 
automatically enforced; a Member of Congress must raise a point 
of order to enforce it. (A point of order is an objection 
raised by a Member on the floor of the House or Senate that 
questions an action being taken as contrary to the rules of 
that body.) If a point of order is raised in the House or 
Senate, each chamber resolves the issue according to its 
established rules and procedures. Under current rules, only 
legislation with intergovernmental mandates above a specific 
threshold is subject to a point of order.
    Estimated Federal cost: CBO expects that enacting H.R. 580 
could affect the issuance of some rules but because of the 
large number and variety of federal rules issued each year, CBO 
cannot determine whether those effects would have costs or 
result in savings for the federal government.
    Although CBO has no basis on which to estimate the overall 
budgetary effects of enacting H.R. 580, we expect that the 
reporting requirements in the bill would increase 
administrative costs for many federal agencies. Under the bill, 
agencies that promulgate major rules would need to enhance 
their research and reporting efforts in the areas of cost-
benefit analyses, consultations with interested parties, and 
assessments of alternatives to the rules.
    The estimated costs for agencies to implement those 
requirements are shown in Table 1 and fall within multiple 
budget functions.

                                             TABLE 1.--ESTIMATED ADMINISTRATIVE COSTS TO IMPLEMENT H.R. 580
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                        By fiscal year, millions of dollars--
                                                           ---------------------------------------------------------------------------------------------
                                                             2026   2027   2028   2029    2030    2031   2032   2033   2034   2035  2026-2030  2026-2035
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Estimated Budget Authority................................      2      2      3      3        3      3      3      3      3      3        13         28
Estimated Outlays.........................................      2      2      3      3        3      3      3      3      3      3        13         28
 
                                                                  Decreases in Revenues
 
Estimated Revenues........................................      *      *      *      *      -12     -3     -3     -3     -3     -3       -12        -27
 
                                                     Increases in Spending Subject to Appropriation
 
Estimated Authorization...................................     11     11     11     12       12   n.e.   n.e.   n.e.   n.e.   n.e.        57       n.e.
Estimated Outlays.........................................      9     11     11     12       12   n.e.   n.e.   n.e.   n.e.   n.e.        55       n.e.
--------------------------------------------------------------------------------------------------------------------------------------------------------
n.e. = not estimated; * = between -$500,000 and zero.
CBO has no basis on which to estimate the overall budgetary effects of enacting H.R. 580 but we expect that the reporting requirements in the bill would
  increase administrative costs for many federal agencies.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
580 will be enacted before the end of 2025.
    Direct spending: CBO cannot determine the bill's overall 
effect on direct spending, but we expect that enacting the bill 
would increase direct spending for the administrative costs of 
the Federal Deposit Insurance Corporation (FDIC), the National 
Credit Union Administration (NCUA), and the Office of the 
Comptroller of the Currency (OCC); that spending is not subject 
to the availability of appropriated funds. The NCUA and the OCC 
collect fees from financial institutions to offset their 
operating costs; those fees are treated as reductions in direct 
spending. Using information from the FDIC, CBO estimates that 
the increased administrative workload under H.R. 580 to prepare 
additional analyses and reports would increase spending for 
that agency by $28 million over the 2026-2035 period.
    Under current law, the Consumer Financial Protection Bureau 
(CFPB) is permanently authorized to spend amounts transferred 
from the combined earnings of the Federal Reserve in an amount 
necessary to carry out its responsibilities, subject to a 
statutory cap that was lowered by the 2025 reconciliation act. 
CBO expects that the CFPB will spend all the transferred funds 
up to its cap in each year over the 2026-2035 period. Thus, CBO 
treats any costs for the CFPB to implement H.R. 580 as 
contingent on future appropriations and discusses those costs 
below under the heading, ``Spending Subject to Appropriation.''
    Revenues: CBO cannot determine the bill's overall effect on 
revenues, but we expect that enacting H.R. 580 also would 
affect revenues by changing the cost of operations for the 
Federal Reserve System, which remits its net earnings to the 
Treasury. Those remittances are classified as revenues in the 
federal budget. Based on the cost of similar activities, CBO 
estimates that the increased costs under the bill would reduce 
remittances to the Treasury by $27 million over the 2026-2035 
period. The bill would not subject the Federal Reserve to the 
additional reporting requirements for any major rules proposed 
for monetary policy by the Federal Reserve Board of Governors 
or the Federal Open Market Committee.
    Changes in costs for the Federal Reserve banks have 
historically resulted in changes to remittances during the same 
year. However, since fiscal year 2023, the central bank has 
recorded a deferred asset to account for accrued net losses 
from expenses in excess of income. As a result, remittances 
largely have been suspended. In CBO's projections, remittances 
from the Federal Reserve will generally be suspended until 
2030, and until they resume, most changes in costs incurred by 
the system will not be recorded as changes in remittances.\1\
---------------------------------------------------------------------------
    \1\For more information, see Congressional Budget Office, ``Recent 
Changes to CBO's Projections of Remittances From the Federal Reserve'' 
(presentation, February 2023), www.cbo.gov/publication/58913.
---------------------------------------------------------------------------
    Spending subject to appropriation: CBO cannot determine the 
bill's overall effect on spending subject to appropriation, but 
we expect that implementing H.R. 580 would increase spending 
for agencies whose administrative funding is provided in annual 
appropriation acts. CBO estimates that agencies which tend to 
produce large numbers of major rules would need more personnel 
to produce the additional analyses and perform other 
administrative tasks under H.R. 580. CBO expects that the 
agencies that promulgate the most major rules, and thus would 
be the most affected by this bill, include the Departments of 
Agriculture, Education, Health and Human Services, Homeland 
Security, Labor, and Transportation, along with the CFPB, the 
Environmental Protection Agency, the Securities and Exchange 
Commission (SEC), and the Small Business Administration. Based 
on the costs of similar activities, CBO estimates that the 
administrative costs to implement H.R. 580 would total $55 
million over the 2026-2030 period; that spending would be 
subject to the availability of appropriated funds.
    Under current law, the SEC is authorized to collect fees 
sufficient to offset its annual appropriation; therefore, CBO 
estimates that the net budgetary effect of the SEC's activities 
to implement H.R. 580 would not be significant, assuming 
appropriation actions consistent with the commission's 
authorities.
    Uncertainty: CBO expects that enacting H.R. 580 could 
affect the issuance of some federal rules. Because of the large 
number and variety of rules issued each year, CBO cannot 
determine whether those effects would result in costs or 
savings for the federal government.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. Pay-as-you-go procedures apply to H.R. 580 because 
enacting the legislation would affect direct spending and 
revenues. However, CBO cannot determine the magnitude or 
direction of all of those effects.
    Increase in long-term net direct spending and deficits: CBO 
cannot determine the magnitude or direction of the budgetary 
effects of H.R. 580. As a result, we cannot determine whether 
the legislation would increase net direct spending by more than 
$2.5 billion or on-budget deficits by more than $5 billion in 
any of the four consecutive 10-year periods beginning in 2036.
    Mandates: If federal financial regulators increased fees to 
offset the costs of implementing the bill, H.R. 580 would 
increase the cost of an existing mandate on private-sector 
entities required to pay those assessments. CBO estimates that 
the incremental cost of the mandate would be well below the 
threshold for private-sector mandates as defined in the 
Unfunded Mandates Reform Act ($206 million in 2025, adjusted 
annually for inflation).
    The bill contains no intergovernmental mandates.
    Estimate prepared by: Federal Costs: Julia Aman (for the 
Federal Deposit Insurance Corporation, the National Credit 
Union Administration, and the Office of the Comptroller of the 
Currency), David Hughes (for regulatory agencies whose spending 
is subject to appropriation); Revenues: Nathaniel Frentz; 
Mandates: Andrew Laughlin.
    Estimate reviewed by: Justin Humphrey, Chief, Finance, 
Housing, and Education Cost Estimates Unit; Joshua Shakin, 
Chief, Revenue Projections Unit; Kathleen FitzGerald, Chief, 
Public and Private Mandates Unit; H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.
    Estimate approved by: Phillip L. Swagel, Director, 
Congressional Budget Office.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                  UNFUNDED MANDATES REFORM ACT OF 1995


SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Unfunded Mandates Reform Act 
of 1995''.

SEC. 2. PURPOSES.

  The purposes of this Act are--
          (1) to strengthen the partnership between the Federal 
        Government and State, local, and [tribal] Tribal 
        governments;
          (2) to end the imposition, in the absence of full 
        consideration by Congress, of Federal mandates on 
        State, local, and [tribal] Tribal governments without 
        adequate Federal funding, in a manner that may displace 
        other essential State, local, and [tribal] Tribal 
        governmental priorities;
          (3) to assist Congress in its consideration of 
        proposed legislation establishing or revising Federal 
        programs containing Federal mandates affecting State, 
        local, and [tribal] Tribal governments, and the private 
        sector by--
                  (A) providing for the development of 
                information about the nature and size of 
                mandates in proposed legislation;and
                  (B) establishing a mechanism to bring such 
                information to the attention of the Senate and 
                the House of Representatives before the Senate 
                and the House of Representatives vote on 
                proposed legislation;
          (4) to promote informed and deliberate decisions by 
        Congress on the appropriateness of Federal mandates in 
        any particular instance;
          (5) to require that Congress consider whether to 
        provide funding to assist State, local, and [tribal] 
        Tribal governments in complying with Federal mandates, 
        to require analyses of the impact of private sector 
        mandates, and through the dissemination of that 
        information provide informed and deliberate decisions 
        by Congress and Federal agencies and retain competitive 
        balance between the public and private sectors;
          (6) to establish a point-of-order vote on the 
        consideration in the Senate and House of 
        Representatives of legislation containing significant 
        Federal intergovernmental mandates without providing 
        adequate funding to comply with such mandates;
          (7) to assist Federal agencies in their consideration 
        of proposed regulations affecting State, local, and 
        [tribal] Tribal governments,by--
                  (A) requiring that Federal agencies develop a 
                process to enable the elected and other 
                officials of State, local, and [tribal] Tribal 
                governments to provide input when Federal 
                agencies are developing regulations; and
                  (B) requiring that Federal agencies prepare 
                and consider estimates of the budgetary impact 
                of regulations containing Federal mandates upon 
                State, local, and [tribal] Tribal governments 
                and the private sector before adopting such 
                regulations, and ensuring that small 
                governments are given special consideration in 
                that process; and
          (8) to begin consideration of the effect of 
        previously imposed Federal mandates, including the 
        impact on State, local, and [tribal] Tribal governments 
        of Federal court interpretations of Federal statutes 
        and regulations that impose Federal intergovernmental 
        mandates.

SEC. 3. DEFINITIONS.

  For the purposes of this Act--
          (1) except as provided in section 305 of this Act, 
        the terms defined under section 421 of the 
        Congressional Budget and Impoundment Control Act of 
        1974 (as added by section 101 of this Act) shall have 
        the meanings as so defined; [and]
          (2) the term ``Director'' means the Director of the 
        Congressional Budget Office[.]; and
          (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.

SEC. 4. EXCLUSIONS.

  This Act shall not apply to any provision in a bill, joint 
resolution, amendment, motion, or conference report before 
Congress and any provision in a proposed or final Federal 
regulation that--
          (1) enforces constitutional rights of individuals;
          (2) establishes or enforces any statutory rights that 
        prohibit discrimination on the basis of race, color, 
        religion, sex, nationalorigin, age, handicap, or 
        disability;
          (3) requires compliance with accounting and auditing 
        procedures with respect to grants or other money or 
        property provided by the Federal Government;
          (4) provides for emergency assistance or relief at 
        the request of any State, local, or [tribal] Tribal 
        government or any official of a State, local, or 
        [tribal] Tribal government;
          (5) is necessary for the national security or the 
        ratification or implementation of international treaty 
        obligations;
          (6) the President designates as emergency legislation 
        and that the Congress so designates in statute; or
          (7) relates to the old-age, survivors, and disability 
        insurance program under title II of the Social Security 
        Act (including taxes imposed by sections 3101(a) and 
        3111(a) of the Internal Revenue Code of 1986 (relating 
        to old-age, survivors, and disability insurance)).

           *       *       *       *       *       *       *

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.

            TITLE I--LEGISLATIVE ACCOUNTABILITY AND REFORM

           *       *       *       *       *       *       *

SEC. 105. CONSIDERATION FOR FEDERAL FUNDING.

  Nothing in this Act shall preclude a State, local, or 
[tribal] Tribal government that already complies with all or 
part of the Federal intergovernmental mandates included in the 
bill, joint resolution, amendment, motion, or conference report 
from consideration for Federal funding under section 425(a)(2) 
of the Congressional Budget and Impoundment Control Act of 1974 
(as added by section 101 of this Act) for the cost of the 
mandate, including the costs the State, local, or [tribal] 
Tribal government is currently paying and any additional costs 
necessary to meet the mandate.

           *       *       *       *       *       *       *

            TITLE II--REGULATORY ACCOUNTABILITY AND REFORM

SEC. 201. REGULATORY PROCESS.

  Each agency shall, unless otherwise prohibited by law, assess 
the effects of Federal regulatory actions on State, local, and 
[tribal] Tribal governments, and the private sector (other than 
to the extent that such regulations incorporate requirements 
specifically set forth in law).

SEC. 202. [STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY ACTIONS.]  
               REGULATORY IMPACT ANALYSES FOR CERTAIN RULES.

  [(a) In General.--Unless otherwise prohibited by law, before 
promulgating any general notice of proposed rulemaking that is 
likely to result in promulgation of any rule that includes any 
Federal mandate that may result in the expenditure by State, 
local, and tribal governments, in the aggregate, or by the 
private sector, of $100,000,000 or more (adjusted annually for 
inflation) in any 1 year, and before promulgating any final 
rule for which a general notice of proposed rulemaking was 
published, the agency shall prepare a written statement 
containing--
          [(1) an identification of the provision of Federal 
        law under which the rule is being promulgated;
          [(2) a qualitative and quantitative assessment of the 
        anticipated costs and benefits of the Federal mandate, 
        including the costs and benefits to State, local, and 
        tribal governments or the private sector, as well as 
        the effect of the Federal mandate on health, safety, 
        and the natural environment and such an assessment 
        shall include--
                  [(A) an analysis of the extent to which such 
                costs to State, local, and tribal governments 
                may be paid with Federal financial assistance 
                (or otherwise paid for by the Federal 
                Government); and
                  [(B) the extent to which there are available 
                Federal resources to carry out the 
                intergovernmental mandate;
          [(3) estimates by the agency, if and to the extent 
        that the agency determines that accurate estimates are 
        reasonably feasible, of--
                  [(A) the future compliance costs of the 
                Federal mandate; and
                  [(B) any disproportionate budgetary effects 
                of the Federal mandate upon any particular 
                regions of the nation or particular State, 
                local, or tribal governments, urban or rural or 
                other types of communities, or particular 
                segments of the private sector;
          [(4) estimates by the agency of the effect on the 
        national economy, such as the effect on productivity, 
        economic growth, full employment, creation of 
        productive jobs, and international competitiveness of 
        United States goods and services, if and to the extent 
        that the agency in its sole discretion determines that 
        accurate estimates are reasonably feasible and that 
        such effect is relevant and material; and
          [(5)(A) a description of the extent of the agency's 
        prior consultation with elected representatives (under 
        section 204) of the affected State, local, and tribal 
        governments;
          [(B) a summary of the comments and concerns that were 
        presented by State, local, or tribal governments either 
        orally or in writing to the agency; and
          [(C) a summary of the agency's evaluation of those 
        comments and concerns.]
  (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).
  [(b)] (d) Promulgation.--In promulgating a general notice of 
proposed rulemaking or a final rule for which [a statement 
under subsection (a) is required, the agency shall include in 
the promulgation a summary of the information contained in the 
statement] 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.
  [(c)] (e) Preparation in Conjunction With Other Statement.--
Any agency may prepare [any statement required under subsection 
(a) in conjunction with or as a part of any other statement or 
analysis, provided that the statement or analysis satisfies the 
provisions of subsection (a)] any analysis required under 
subsection (b) in conjunction with, or as a part of, any other 
statement or analysis if the other statement or analysis 
satisfies the requirements of subsections (b) and (c).

           *       *       *       *       *       *       *

SEC. 204. STATE, LOCAL, AND TRIBAL GOVERNMENT  AND PRIVATE SECTOR 
            INPUT.

  (a) In General.--Each agency shall, to the extent permitted 
in law, develop an effective process to permit elected officers 
of State, local, and [tribal] Tribal governments (or their 
designated employees with authority to act on their behalf), 
and impacted parties within the private sector (including small 
businesses), to provide meaningful and timely input in the 
development of regulatory proposals containing significant 
[Federal intergovernmental mandates] Federal mandates.
  (b) Meetings Between State, Local, Tribal and Federal 
Officers.--Chapter 10 of title 5, United States Code, shall not 
apply to actions in support of intergovernmental communications 
where--
          (1) meetings are held exclusively between Federal 
        officials and elected officers of State, local, and 
        [tribal] Tribal governments (or their designated 
        employees with authority to act on their behalf) acting 
        in their official capacities; and
          (2) such meetings are solely for the purposes of 
        exchanging views, information, or advice relating to 
        the management or implementation of Federal programs 
        established pursuant to public law that explicitly or 
        inherently share intergovernmental responsibilities or 
        administration.
  [(c) Implementing Guidelines.--No later than 6 months after 
the date of enactment of this Act, the President shall issue 
guidelines and instructions to Federal agencies for appropriate 
implementation of subsections (a) and (b) consistent with 
applicable laws and regulations.]
  (c) Guidelines.--For appropriate implementation of 
subsections (a) and (b) consistent with applicable laws and 
regulations, the following guidelines shall be followed:
          (1) Consultations 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 these consultations. 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; and
                  (B) solicit ideas about alternative methods 
                of compliance and potential flexibilities, and 
                input on whether the Federal regulation will 
                harmonize with and not duplicate similar laws 
                in other levels of government.
          (5) Consultations 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. 205. LEAST BURDENSOME OPTION OR EXPLANATION REQUIRED.

  [(a) In General.--Except as provided in subsection (b), 
before promulgating any rule for which a written statement is 
required under section 202, the agency shall identify and 
consider a reasonable number of regulatory alternatives and 
from those alternatives select the least costly, most cost-
effective or least burdensome alternative that achieves the 
objectives of the rule, for--
          [(1) State, local, and tribal governments, in the 
        case of a rule containing a Federal intergovernmental 
        mandate; and
          [(2) the private sector, in the case of a rule 
        containing a Federal private sector mandate.
  [(b) Exception.--The provisions of subsection (a) shall apply 
unless--
          [(1) the head of the affected agency publishes with 
        the final rule an explanation of why the least costly, 
        most cost-effective or least burdensome method of 
        achieving the objectives of the rule was not adopted; 
        or
          [(2) the provisions are inconsistent with law.
  [(c) OMB Certification.--No later than 1 year after the date 
of the enactment of this Act, the Director of the Office of 
Management and Budget shall certify to Congress, with a written 
explanation, agency compliance with this section and include in 
that certification agencies and rulemakings that fail to 
adequately comply with this section.]

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 
                related to constitutional or civil rights, 
                provided that 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, provided that 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.

           *       *       *       *       *       *       *

[SEC. 208. ANNUAL STATEMENTS TO CONGRESS ON AGENCY COMPLIANCE.

  [No later than 1 year after the effective date of this title 
and annually thereafter, the Director of the Office of 
Management and Budget shall submit to the Congress, including 
the Committee on Governmental Affairs of the Senate and the 
Committee on Government Reform and Oversight of the House of 
Representatives, a written report detailing compliance by each 
agency during the preceding reporting period with the 
requirements of this title.]

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) are consistent with the principles and 
        requirements of this title, as well as other applicable 
        laws; and
          (2) and do not conflict with the policies or actions 
        of another agency.
  (b) Notification.--If the Administrator determines that the 
major rules of an agency for which a regulatory impact analysis 
is required under section 202 do not comply with the principles 
and requirements of this title, are not consistent with other 
applicable laws, or conflict 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 concerned.
  (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 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. 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. [209.]  210. EFFECTIVE DATE.

  This title and the amendments made by this title shall take 
effect on the date of the enactment of this Act.

           *       *       *       *       *       *       *

                 TITLE III--REVIEW OF FEDERAL MANDATES

           *       *       *       *       *       *       *


SEC. 304. ANNUAL REPORT TO CONGRESS REGARDING FEDERAL COURT RULINGS.

  No later than 4 months after the date of enactment of this 
Act, and no later than March 15 of each year thereafter, the 
Advisory Commission on Intergovernmental Relations shall submit 
to the Congress, including the Committee on Government Reform 
and Oversight of the House of Representatives and the Committee 
on Governmental Affairs of the Senate, and to the President a 
report describing any Federal court case to which a State, 
local, or [tribal] Tribal government was a party in the 
preceding calendar year that required such State, local, or 
[tribal] Tribal government to undertake responsibilities or 
activities, beyond those such government would otherwise have 
undertaken, to comply with Federal statutes and regulations.

SEC. 305. DEFINITION.

  Notwithstanding section 3 of this Act, for purposes of this 
title the term ``Federal mandate'' means any provision in 
statute or regulation or any Federal court ruling that imposes 
an enforceable duty upon State, local, or [tribal] Tribal 
governments including a condition of Federal assistance or a 
duty arising from participation in a voluntary Federal program.

           *       *       *       *       *       *       *

                       TITLE IV--JUDICIAL REVIEW

[SEC. 401. JUDICIAL REVIEW.

  [(a) Agency Statements on Significant Regulatory Actions.--
          [(1) In general.--Compliance or noncompliance by any 
        agency with the provisions of sections 202 and 203(a) 
        (1) and (2) shall be subject to judicial review only in 
        accordance with this section.
          [(2) Limited review of agency compliance or 
        noncompliance.--(A) Agency compliance or noncompliance 
        with the provisions of sections 202 and 203(a) (1) and 
        (2) shall be subject to judicial review only under 
        section 706(1) of title 5, United States Code, and only 
        as provided under subparagraph (B).
          [(B) If an agency fails to prepare the written 
        statement (including the preparation of the estimates, 
        analyses, statements, or descriptions) under section 
        202 or the written plan under section 203(a) (1) and 
        (2), a court may compel the agency to prepare such 
        written statement.
          [(3) Review of agency rules.--In any judicial review 
        under any other Federal law of an agency rule for which 
        a written statement or plan is required under sections 
        202 and 203(a) (1) and (2), the inadequacy or failure 
        to prepare such statement (including the inadequacy or 
        failure to prepare any estimate, analysis, statement or 
        description) or written plan shall not be used as a 
        basis for staying, enjoining, invalidating or otherwise 
        affecting such agency rule.
          [(4) Certain information as part of record.--Any 
        information generated under sections 202 and 203(a) (1) 
        and (2) that is part of the rulemaking record for 
        judicial review under the provisions of any other 
        Federal law may be considered as part of the record for 
        judicial review conducted under such other provisions 
        of Federal law.
          [(5) Application of other federal law.--For any 
        petition under paragraph (2) the provisions of such 
        other Federal law shall control all other matters, such 
        as exhaustion of administrative remedies, the time for 
        and manner of seeking review and venue, except that if 
        such other Federal law does not provide a limitation on 
        the time for filing a petition for judicial review that 
        is less than 180 days, such limitation shall be 180 
        days after a final rule is promulgated by the 
        appropriate agency.
          [(6) Effective date.--This subsection shall take 
        effect on October 1, 1995, and shall apply only to any 
        agency rule for which a general notice of proposed 
        rulemaking is promulgated on or after such date.
  [(b) Judicial Review and Rule of Construction.--Except as 
provided in subsection (a)--
          [(1) any estimate, analysis, statement, description 
        or report prepared under this Act, and any compliance 
        or noncompliance with the provisions of this Act, and 
        any determination concerning the applicability of the 
        provisions of this Act shall not be subject to judicial 
        review; and
          [(2) no provision of this Act shall be construed to 
        create any right or benefit, substantive or procedural, 
        enforceable by any person in any administrative or 
        judicial action.]

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.
                              ----------                              


                    CONGRESSIONAL BUDGET ACT OF 1974

           *       *       *       *       *       *       *

              TITLE IV--ADDITIONAL PROVISIONS TO IMPROVE 
                            FISCAL PROCEDURES

           *       *       *       *       *       *       *

                        Part B--Federal Mandates

SEC. 421. DEFINITIONS.

   For purposes of this part:
          (1) Agency.--The term ``agency'' has the same meaning 
        as defined in section 551(1) of title 5, United States 
        Code[, but does not include independent regulatory 
        agencies].
          (2) Amount.--The term ``amount'', with respect to an 
        authorization of appropriations for Federal financial 
        assistance, means the amount of budget authority for 
        any Federal grant assistance program or any Federal 
        program providing loan guarantees or direct loans.
          (3) Direct costs.--The term ``direct costs''--
                  (A)(i) in the case of a Federal 
                intergovernmental mandate, means the aggregate 
                estimated amounts that all State, local, and 
                tribal governments would be required to spend 
                or would be prohibited from raising in revenues 
                in order to comply with the Federal 
                intergovernmental mandate; or
                  (ii) in the case of a provision referred to 
                in paragraph (5)(A)(ii), means the amount of 
                Federal financial assistance eliminated or 
                reduced;
                  (B) in the case of a Federal private sector 
                mandate, means the aggregate estimated amounts 
                that the private sector will be required to 
                spend in order to comply with the Federal 
                private sector mandate;
                  (C) shall be determined on the assumption 
                that--
                          (i) State, local, and tribal 
                        governments, and the private sector 
                        will take all reasonable steps 
                        necessary to mitigate the costs 
                        resulting from the Federal mandate, and 
                        will comply with applicable standards 
                        of practice and conduct established by 
                        recognized professional or trade 
                        associations; and
                          (ii) reasonable steps to mitigate the 
                        costs shall not include increases in 
                        State, local, or tribal taxes or fees; 
                        and
                  (D) shall not include--
                          (i) estimated amounts that the State, 
                        local, and tribal governments (in the 
                        case of a Federal intergovernmental 
                        mandate) or the private sector (in the 
                        case of a Federal private sector 
                        mandate) would spend--
                                  (I) to comply with or carry 
                                out all applicable Federal, 
                                State, local, and tribal laws 
                                and regulations in effect at 
                                the time of the adoption of the 
                                Federal mandate for the same 
                                activity as is affected by that 
                                Federal mandate; or
                                  (II) to comply with or carry 
                                out State, local, and tribal 
                                governmental programs, or 
                                private-sector business or 
                                other activities in effect at 
                                the time of the adoption of the 
                                Federal mandate for the same 
                                activity as is affected by that 
                                mandate; or
                          (ii) expenditures to the extent that 
                        such expenditures will be offset by any 
                        direct savings to the State, local, and 
                        tribal governments, or by the private 
                        sector, as a result of--
                                  (I) compliance with the 
                                Federal mandate; or
                                  (II) other changes in Federal 
                                law or regulation that are 
                                enacted or adopted in the same 
                                bill or joint resolution or 
                                proposed or final Federal 
                                regulation and that govern the 
                                same activity as is affected by 
                                the Federal mandate.
          (4) Direct savings.--The term ``direct savings'', 
        when used with respect to the result of compliance with 
        the Federal mandate--
                  (A) in the case of a Federal 
                intergovernmental mandate, means the aggregate 
                estimated reduction in costs to any State, 
                local, or tribal government as a result of 
                compliance with the Federal intergovernmental 
                mandate; and
                  (B) in the case of a Federal private sector 
                mandate, means the aggregate estimated 
                reduction in costs to the private sector as a 
                result of compliance with the Federal private 
                sector mandate.
          (5) Federal intergovernmental mandate.--The term 
        ``Federal intergovernmental mandate'' means--
                  (A) any provision in legislation, statute, or 
                regulation that--
                          (i) would impose an enforceable duty 
                        upon State, local, or tribal 
                        governments, except--
                                  (I) a condition of Federal 
                                assistance; or
                                  (II) a duty arising from 
                                participation in a voluntary 
                                Federal program, except as 
                                provided in subparagraph (B); 
                                or
                          (ii) would reduce or eliminate the 
                        amount of authorization of 
                        appropriations for--
                                  (I) Federal financial 
                                assistance that would be 
                                provided to State, local, or 
                                tribal governments for the 
                                purpose of complying with any 
                                such previously imposed duty 
                                unless such duty is reduced or 
                                eliminated by a corresponding 
                                amount; or
                                  (II) the control of borders 
                                by the Federal Government; or 
                                reimbursement to State, local, 
                                or tribal governments for the 
                                net cost associated with 
                                illegal, deportable, and 
                                excludable aliens, including 
                                court-mandated expenses related 
                                to emergency health care, 
                                education or criminal justice; 
                                when such a reduction or 
                                elimination would result in 
                                increased net costs to State, 
                                local, or tribal governments in 
                                providing education or 
                                emergency health care to, or 
                                incarceration of, illegal 
                                aliens; except that this 
                                subclause shall not be in 
                                effect with respect to a State, 
                                local, or tribal government, to 
                                the extent that such government 
                                has not fully cooperated in the 
                                efforts of the Federal 
                                Government to locate, 
                                apprehend, and deport illegal 
                                aliens;
                  (B) any provision in legislation, statute, or 
                regulation that relates to a then-existing 
                Federal program under which $500,000,000 or 
                more is provided annually to State, local, and 
                tribal governments under entitlement authority, 
                if the provision--
                          (i)(I) would increase the stringency 
                        of conditions of assistance to State, 
                        local, or tribal governments under the 
                        program; or
                          (II) would place caps upon, or 
                        otherwise decrease, the Federal 
                        Government's responsibility to provide 
                        funding to State, local, or tribal 
                        governments under the program; and
                          (ii) the State, local, or tribal 
                        governments that participate in the 
                        Federal program lack authority under 
                        that program to amend their financial 
                        or programmatic responsibilities to 
                        continue providing required services 
                        that are affected by the legislation, 
                        statute, or regulation.
          (6) Federal mandate.--The term ``Federal mandate'' 
        means a Federal intergovernmental mandate or a Federal 
        private sector mandate, as defined in paragraphs (5) 
        and (7).
          (7) Federal private sector mandate.--The term 
        ``Federal private sector mandate'' means any provision 
        in legislation, statute, or regulation that--
                  (A) would impose an enforceable duty upon the 
                private sector except--
                          (i) a condition of Federal 
                        assistance; or
                          (ii) a duty arising from 
                        participation in a voluntary Federal 
                        program; or
                  (B) would reduce or eliminate the amount of 
                authorization of appropriations for Federal 
                financial assistance that will be provided to 
                the private sector for the purposes of ensuring 
                compliance with such duty.
          (8) Local government.--The term ``local government'' 
        has the same meaning as defined in section 6501(6) of 
        title 31, United States Code.
          (9) Private sector.--The term ``private sector'' 
        means all persons or entities in the United States, 
        including individuals, partnerships, associations, 
        corporations, and educational and nonprofit 
        institutions, but shall not include State, local, or 
        tribal governments.
          (10) Regulation; rule.--The term ``regulation'' or 
        ``rule'' (except with respect to a rule of either House 
        of the Congress) has the meaning of ``rule'' as defined 
        in section 601(2) of title 5, United States Code.
          (11) Small government.--The term ``small government'' 
        means any small governmental jurisdictions defined in 
        section 601(5) of title 5, United States Code, and any 
        tribal government.
          (12) State.--The term ``State'' has the same meaning 
        as defined in section 6501(9) of title 31, United 
        States Code.
          (13) Tribal government.--The term ``tribal 
        government'' means any Indian tribe, band, nation, or 
        other organized group or community, including any 
        Alaska Native village or regional or village 
        corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act (85 Stat. 688; 
        43 U.S.C. 1601 et seq.) which is recognized as eligible 
        for the special programs and services provided by the 
        United States to Indians because of their special 
        status as Indians.

           *       *       *       *       *       *       *

SEC. 425. LEGISLATION SUBJECT TO POINT OF ORDER.

  (a) In General.--It shall not be in order in the Senate or 
the House of Representatives to consider--
          (1) any bill or joint resolution that is reported by 
        a committee unless the committee has published a 
        statement of the Director on the direct costs of 
        Federal mandates in accordance with section 423(f) 
        before such consideration, except this paragraph shall 
        not apply to any supplemental statement prepared by the 
        Director under section 424(d); and
          (2) any bill, joint resolution, amendment, motion, or 
        conference report that would increase the direct costs 
        of [Federal intergovernmental mandates] Federal 
        mandates by an amount that causes the thresholds 
        specified in [section 424(a)(1)] subsection (a)(1) or 
        (b)(1) of section 424 to be exceeded, unless--
                  (A) the bill, joint resolution, amendment, 
                motion, or conference report provides new 
                budget authority or new entitlement authority 
                in the House of Representatives or direct 
                spending authority in the Senate for each 
                fiscal year for such mandates included in the 
                bill, joint resolution, amendment, motion, or 
                conference report in an amount equal to or 
                exceeding the direct costs of such mandate; or
                  (B) the bill, joint resolution, amendment, 
                motion, or conference report includes an 
                authorization for appropriations in an amount 
                equal to or exceeding the direct costs of such 
                mandate, and--
                          (i) identifies a specific dollar 
                        amount of the direct costs of such 
                        mandate for each year up to 10 years 
                        during which such mandate shall be in 
                        effect under the bill, joint 
                        resolution, amendment, motion or 
                        conference report, and such estimate is 
                        consistent with the estimate determined 
                        under subsection (e) for each fiscal 
                        year;
                          (ii) identifies any appropriation 
                        bill that is expected to provide for 
                        Federal funding of the direct cost 
                        referred to under clause (i); and
                          (iii)(I) provides that for any fiscal 
                        year the responsible Federal agency 
                        shall determine whether there are 
                        insufficient appropriations for that 
                        fiscal year to provide for the direct 
                        costs under clause (i) of such mandate, 
                        and shall (no later than 30 days after 
                        the beginning of the fiscal year) 
                        notify the appropriate authorizing 
                        committees of Congress of the 
                        determination and submit either--
                                  (aa) a statement that the 
                                agency has determined, based on 
                                a re-estimate of the direct 
                                costs of such mandate, after 
                                consultation with State, local, 
                                and tribal governments, that 
                                the amount appropriated is 
                                sufficient to pay for the 
                                direct costs of such mandate; 
                                or
                                  (bb) legislative 
                                recommendations for either 
                                implementing a less costly 
                                mandate or making such mandate 
                                ineffective for the fiscal 
                                year;
                          (II) provides for expedited 
                        procedures for the consideration of the 
                        statement or legislative 
                        recommendations referred to in 
                        subclause (I) by Congress no later than 
                        30 days after the statement or 
                        recommendations are submitted to 
                        Congress; and
                          (III) provides that such mandate 
                        shall--
                                  (aa) in the case of a 
                                statement referred to in 
                                subclause (I)(aa), cease to be 
                                effective 60 days after the 
                                statement is submitted unless 
                                Congress has approved the 
                                agency's determination by joint 
                                resolution during the 60-day 
                                period;
                                  (bb) cease to be effective 60 
                                days after the date the 
                                legislative recommendations of 
                                the responsible Federal agency 
                                are submitted to Congress under 
                                subclause (I)(bb) unless 
                                Congress provides otherwise by 
                                law; or
                                  (cc) in the case that such 
                                mandate that has not yet taken 
                                effect, continue not to be 
                                effective unless Congress 
                                provides otherwise by law.
  (b) Rule of Construction.--The provisions of subsection 
(a)(2)(B)(iii) shall not be construed to prohibit or otherwise 
restrict a State, local, or tribal government from voluntarily 
electing to remain subject to the original Federal 
intergovernmental mandate, complying with the programmatic or 
financial responsibilities of the original Federal 
intergovernmental mandate and providing the funding necessary 
consistent with the costs of Federal agency assistance, 
monitoring, and enforcement.
  (c) Committee on Appropriations.--
          (1) Application.--The provisions of subsection (a)--
                  (A) shall not apply to any bill or resolution 
                reported by the Committee on Appropriations of 
                the Senate or the House of Representatives; 
                except
                  (B) shall apply to--
                          (i) any legislative provision 
                        increasing direct costs of a Federal 
                        intergovernmental mandate contained in 
                        any bill or resolution reported by the 
                        Committee on Appropriations of the 
                        Senate or House of Representatives;
                          (ii) any legislative provision 
                        increasing direct costs of a Federal 
                        intergovernmental mandate contained in 
                        any amendment offered to a bill or 
                        resolution reported by the Committee on 
                        Appropriations of the Senate or House 
                        of Representatives;
                          (iii) any legislative provision 
                        increasing direct costs of a Federal 
                        intergovernmental mandate in a 
                        conference report accompanying a bill 
                        or resolution reported by the Committee 
                        on Appropriations of the Senate or 
                        House of Representatives; and
                          (iv) any legislative provision 
                        increasing direct costs of a Federal 
                        intergovernmental mandate contained in 
                        any amendments in disagreement between 
                        the two Houses to any bill or 
                        resolution reported by the Committee on 
                        Appropriations of the Senate or House 
                        of Representatives.
          (2) Certain provisions stricken in senate.--Upon a 
        point of order being made by any Senator against any 
        provision listed in paragraph (1)(B), and the point of 
        order being sustained by the Chair, such specific 
        provision shall be deemed stricken from the bill, 
        resolution, amendment, amendment in disagreement, or 
        conference report and may not be offered as an 
        amendment from the floor.
  (d) Determinations of Applicability to Pending Legislation.--
For purposes of this section, in the Senate, the presiding 
officer of the Senate shall consult with the Committee on 
Governmental Affairs, to the extent practicable, on questions 
concerning the applicability of this part to a pending bill, 
joint resolution, amendment, motion, or conference report.
  (e) Determinations of Federal Mandate Levels.--For purposes 
of this section, in the Senate, the levels of Federal mandates 
for a fiscal year shall be determined based on the estimates 
made by the Committee on the Budget.

           *       *       *       *       *       *       *

                             MINORITY VIEWS

    Regulations have been a straw man for Republicans to attack 
government agencies for years. Yet the majority of Americans 
support government regulation across a range of industries. 
Regulations are what enable us to feel confident that the food 
we eat and the water we drink are safe for consumption. 
Regulations prevent fraudulent advertising and targeting 
children with products like tobacco and alcohol. They help 
protect the quality of the very air we breathe.
    Regulations have a profound effect on every aspect of our 
lives. They help keep our nation safe, healthy, and prosperous. 
Democrats support improving transparency and public 
participation in the regulatory process. But that is not what 
this bill does.
    H.R. 580 will make the already complex regulatory process 
more burdensome and give industry, which already has 
significant input in the regulatory process, even more say. In 
contrast, the Biden Administration worked to modernize the 
regulatory process, strengthening democracy by further 
advancing the transparency, inclusivity, and effectiveness of 
federal regulations.
    The Biden Administration's modernization plans promoted 
both efficiency and fairness with the purpose of ensuring that 
well-funded and well-connected corporations no longer have 
outsized influence on federal regulations simply because they 
have the time, resources, and lobbyists to bombard federal 
officials with input.
    The changes implemented by the Biden Administration require 
federal officials to proactively seek out the voices of those 
who are underrepresented in--but still critically affected by--
the rulemaking process, including people with disabilities and 
people living in rural areas, as well as minority groups.
    This bill would overwhelm those underrepresented voices by 
giving special interests a megaphone in the regulatory process. 
This is not the way to increase public participation and reduce 
the opacity of the regulatory process--it is in fact a way to 
increase the influence of special interests.
    The bill would also expand the definition of ``major rule'' 
to include any rule with an annual financial effect of $100 
million or more. The definition would further be expanded to 
include the vague qualification of any regulation with 
significant adverse effects on competition, employment, 
investment, productivity, innovation, public health and safety, 
or the ability of U.S.-based enterprises to compete with 
foreign-based enterprises in domestic and export markets.
    H.R. 580 would also require federal agencies to prepare and 
publish a burdensome analysis of the impacts of the regulation 
prior to promulgating any proposed or final major rule. The 
analysis would be required to include a cost-benefit analysis 
of the rule and possible regulatory alternatives, among other 
details.
    The bill would also expand judicial review of federal 
regulations making it easier for entities to go to court to 
block regulatory actions. It would also create a point of order 
preventing consideration in both the House and Senate of any 
legislation, joint resolution, amendment, motion, or conference 
report that has private sector costs of $100 million or more in 
a given fiscal year. Previously, this point of order only 
applied to federal intergovernmental mandates.
    Regulations are a tool in our democracy that serve the 
public good. Unfortunately, this bill would hinder, not improve 
the ability of the public to be heard and represented. For 
these reasons, Democrats strongly oppose this legislation.

                                             Robert Garcia,
                                                    Ranking Member.

                                  [all]