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

<DOC>






119th CONGRESS
  1st Session
                                H. R. 3279

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2025

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

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. REGULATORY BUDGETING.

    (a) Limit for the Amount of Additional Unfunded Regulatory Costs 
That May Be Imposed Each Fiscal Year.--
            (1) Establishment.--
                    (A) Omb limit.--On or before September 30 of each 
                fiscal year, the Director shall establish--
                            (i) a limit on the amount of additional 
                        unfunded regulatory costs that may be imposed 
                        collectively by the heads of all agencies in 
                        the next fiscal year; and
                            (ii) as part of the limit established under 
                        clause (i), a limit on the amount of additional 
                        unfunded regulatory costs that may be imposed 
                        individually by the head of each agency in the 
                        next fiscal year.
                    (B) Proposed agency limits.--Not later than 90 days 
                before the date on which the Director establishes a 
                limit for the head of an agency under subparagraph 
                (A)(ii), the head of each agency shall submit to the 
                Director--
                            (i) a proposed limit on the amount of 
                        additional unfunded regulatory costs that may 
                        be imposed by the head of that agency in the 
                        next fiscal year; and
                            (ii) detailed information that describes 
                        the bases and reasoning for the proposed limit 
                        (including any costs described under subsection 
                        (b)(1)(B)(ii)).
                    (C) Additional matters related to limit.--The 
                Director may require as part of a limit under 
                subparagraph (A) that cumulative unfunded regulatory 
                costs be reduced, including for the purpose of 
                offsetting any additional unfunded regulatory costs 
                that may be imposed by the heads of agencies during the 
                fiscal year for which the limit is established.
                    (D) Congressional approval; implementation of 
                default limit pending required congressional 
                approval.--
                            (i) In general.--The Director may not 
                        implement a limit established under 
                        subparagraph (A) that allows the head of an 
                        agency to impose a net increase in additional 
                        unfunded regulatory costs during the fiscal 
                        year to which the limit applies unless and 
                        until Congress approves such limit by joint 
                        resolution.
                            (ii) Limit to be implemented before 
                        congressional approval.--Following the 
                        Director's submission to Congress under 
                        paragraph (2) of a limit described in clause 
                        (i), and until Congress approves such limit, 
                        the Director shall implement in lieu of such 
                        limit a limit that allows no net increase in 
                        additional unfunded regulatory costs to be 
                        imposed during the applicable fiscal year.
            (2) Reports.--
                    (A) Agency-wide limit.--Not later than 7 days after 
                establishing a limit under paragraph (1)(A)(i), the 
                Director shall--
                            (i) submit to the appropriate congressional 
                        committees a report that identifies the limit 
                        established and contains a reasoned statement 
                        of the basis and purpose of establishing such 
                        limit (including an identification of any cost 
                        taken into account in establishing the limit 
                        pursuant to subsection (b)(1)(B)(i)); and
                            (ii) publish the report on the website 
                        designated under subparagraph (D).
                    (B) Agency-specific limit.--Not later than 7 days 
                after establishing a limit under paragraph (1)(A)(ii) 
                with respect to an agency, the Director shall--
                            (i) submit a report that identifies the 
                        limit established and contains a reasoned 
                        statement of the basis and purpose of 
                        establishing such limit (including an 
                        identification of any cost taken into account 
                        in establishing the limit pursuant to 
                        subsection (b)(1)(B)(i)) to--
                                    (I) the appropriate congressional 
                                committees; and
                                    (II) each standing committee with 
                                jurisdiction under the rules of the 
                                House of Representatives or the Senate 
                                to report a bill to amend the 
                                provisions of law under which the head 
                                of the agency is authorized to 
                                promulgate rules; and
                            (ii) publish the report on the website 
                        designated under subparagraph (D).
                    (C) Prohibition on promulgating certain rules until 
                submission of report to appropriate congressional 
                committees.--
                            (i) In general.--The head of an agency may 
                        not finalize a rule that imposes an additional 
                        unfunded regulatory cost until the Director 
                        submits to the appropriate congressional 
                        committees the reports required by subparagraph 
                        (A)(i) and subparagraph (B)(i) for the fiscal 
                        year in which the rule would be finalized.
                            (ii) Exception.--The prohibition under 
                        clause (i) shall not apply to any rule with 
                        respect to which the President issues an 
                        Executive Order stating that the rule should 
                        take effect because the rule is--
                                    (I) necessary--
                                            (aa) because of an 
                                        emergency, including an 
                                        imminent threat to health or 
                                        safety;
                                            (bb) for the enforcement of 
                                        criminal laws; or
                                            (cc) for national security; 
                                        or
                                    (II) being issued pursuant to a law 
                                implementing an international trade 
                                agreement.
                    (D) Designation of website.--Not later than 90 days 
                after the date of the enactment of this subsection, the 
                Director shall designate a website through which the 
                Director will publish reports in accordance with 
                subparagraphs (A) and (B).
    (b) Rules Resulting in Limit Being Exceeded.--
            (1) Congressional approval.--
                    (A) Prohibition on rule taking effect.--If the 
                promulgation of any individual rule would result in a 
                limit established under subsection (a)(1)(A) being 
                exceeded, notwithstanding any requirement established 
                by the Director pursuant to subsection (a)(1)(C), the 
                rule may not go into effect during the fiscal year in 
                which the rule is promulgated unless and until Congress 
                approves such rule during such fiscal year by joint 
                resolution.
                    (B) Accounting for certain costs imposed under 
                rules promulgated but not approved.--In the case that a 
                rule is prohibited from going into effect during the 
                fiscal year in which the rule is promulgated because 
                Congress does not approve such rule under subparagraph 
                (A), such rule may go into effect during any proceeding 
                fiscal year if--
                            (i) the head of the agency identifies under 
                        subsection (a)(1)(B)(ii) the amount of 
                        additional unfunded regulatory costs that would 
                        be imposed in such fiscal year if such rule 
                        takes effect in that fiscal year;
                            (ii) the Director takes into account any 
                        such costs in establishing the limits for that 
                        fiscal year under subsection (a)(1)(A); and
                            (iii) in the case that such limits allow 
                        for the head of an agency to impose a net 
                        increase in additional unfunded regulatory 
                        costs during the fiscal year to which the limit 
                        applies, Congress approves such limits under 
                        subsection (a)(1)(D).
            (2) Notification.--In the case that the head of an agency 
        determines that finalizing a rule may result in the amount of 
        additional unfunded regulatory costs imposed by the head of the 
        agency during that fiscal year to exceed a limit established 
        under subsection (a)(1)(A), notwithstanding any requirement 
        established by the Director pursuant to subsection (a)(1)(C), 
        the head of the agency--
                    (A) shall submit, before promulgating a general 
                notice of a final rule with respect to such rule, a 
                notification to the Director that includes--
                            (i) a justification for exceeding such 
                        limit as a result of such rule;
                            (ii) by how much the limit will be exceeded 
                        as a result of such rule;
                            (iii) an identification of any requirement 
                        established by the Director pursuant to 
                        subsection (a)(1)(C) to avoid exceeding such 
                        limit as a result of such rule; and
                            (iv) whether the head of the agency 
                        identified or considered any alternatives to 
                        such rule, or the establishment of additional 
                        requirements by the Director pursuant to 
                        subsection (a)(1)(C), that would have resulted 
                        in the imposition of a lesser amount of 
                        additional unfunded regulatory costs, and if 
                        so, how much less such amount would have been; 
                        and
                    (B) may not promulgate such rule until the head of 
                the agency receives from the Director a notification 
                under paragraph (3)(C) with respect to such rule.
            (3) Determination by director.--After receiving a 
        notification under paragraph (2), the Director shall--
                    (A) determine whether finalizing such rule during 
                that fiscal year will result in a limit established 
                under subsection (a)(1)(A) being exceeded, 
                notwithstanding any requirement established by the 
                Director pursuant to subsection (a)(1)(C);
                    (B) determine whether the Director agrees with the 
                determination of the head of the agency that such rule 
                should be finalized notwithstanding such limit; and
                    (C) submit a written notification to the head of 
                the agency on the determinations made under 
                subparagraphs (A) and (B) of this paragraph.
            (4) Report to congress.--In the case that the Director 
        determines under paragraph (3)(B) that the Director agrees with 
        a determination by the head of an agency to finalize a rule 
        that will result, notwithstanding any requirement established 
        by the Director pursuant to subsection (a)(1)(C), in a limit 
        established under subsection (a)(1)(A) being exceeded, not 
        later than 7 days after the Director submits a notification to 
        the head of an agency under paragraph (3)(C) of this subsection 
        with respect to such determination, the Director shall submit 
        to the appropriate congressional committees, each standing 
        committee with jurisdiction under the rules of the House of 
        Representatives or the Senate to report a bill to amend the 
        provision of law under which the rule is to be promulgated, and 
        the Comptroller General, a notification regarding such 
        determination by the Director that includes--
                    (A) the information provided by the head of the 
                agency to the Director under paragraph (2)(A) with 
                respect to such rule; and
                    (B) a reasoned statement of the basis and purpose 
                of such determination.
    (c) Statement Regarding Additional Unfunded Regulatory Costs.--In 
publishing a general notice of a final rule, the head of an agency 
shall include in such notice a statement that includes--
            (1) whether the rule will result in the amount of 
        additional unfunded regulatory costs imposed by the agency 
        during the fiscal year in which the rule is finalized to exceed 
        a limit established under subsection (a)(1)(A), notwithstanding 
        any requirement established by the Director pursuant to 
        subsection (a)(1)(C); and
            (2) in the case that the rule will result in the amount of 
        additional unfunded regulatory costs imposed by the agency 
        during the fiscal year in which the rule is finalized to exceed 
        a limit established under subsection (a)(1)(A), notwithstanding 
        any requirement established by the Director pursuant to 
        subsection (a)(1)(C)--
                    (A) by how much the limit will be exceeded as a 
                result of the rule;
                    (B) a justification for exceeding such limit as a 
                result of the rule;
                    (C) an identification of any requirement 
                established by the Director pursuant to subsection 
                (a)(1)(C) to avoid exceeding such limit as a result of 
                such rule;
                    (D) whether the agency identified or considered any 
                alternatives to the rule, or any requirement 
                established by the Director pursuant to subsection 
                (a)(1)(C) that would have resulted in the imposition of 
                a lesser amount of additional unfunded regulatory 
                costs, and if so, how much less such amount would have 
                been;
                    (E) that the head of the agency submitted a 
                notification to the Director under subsection (b)(2); 
                and
                    (F) the determinations made by the Director under 
                subsection (b)(3) with respect to such rule.
    (d) Judicial Review.--
            (1) In general.--A person that is aggrieved by agency 
        action regarding a rule that is prohibited under the provisions 
        of this section from being finalized or taking effect is 
        entitled to judicial review of whether the agency complied with 
        this section.
            (2) Scope of review.--Chapter 7 of title 5, United States 
        Code, shall govern the scope of judicial review under paragraph 
        (1).
            (3) Jurisdiction.--Each court that has jurisdiction to 
        review a rule for compliance with section 553 of title 5, 
        United States Code, or under any other provision of law, shall 
        have jurisdiction to review a claim brought under paragraph 
        (1).
            (4) Relief available.--In granting relief in an action 
        under this section, a court shall order the agency that 
        finalized or treated as in effect the rule that is under review 
        to take remedial action consistent with chapter 7 of title 5, 
        United States Code.
    (e) Associate Administrator for Regulatory Budgeting.--
            (1) Establishment of position.--Section 3503 of title 44, 
        United States Code, is amended by adding at the end the 
        following new subsection:
    ``(c) Associate Administrator for Regulatory Budgeting.--
            ``(1) Establishment.--There is established an Associate 
        Administrator for Regulatory Budgeting within the Office of 
        Information and Regulatory Affairs of the Office of Management 
        and Budget, who is responsible for the oversight and 
        coordination of the implementation of section 2 of the REG 
        Budgeting Act of 2025.
            ``(2) Appointment and pay.--The position of Associate 
        Administrator established under paragraph (1) shall be 
        appointed by the President, shall be a position in the excepted 
        service, and shall be compensated at the rate of basic pay for 
        level IV of the Executive Schedule (section 5315 of title 
        5).''.
            (2) First appointment of associate administrator for 
        regulatory budgeting.--Not later than 30 days after the date of 
        the enactment of thi