What This Bill Does
This bill creates a new federal regulatory budget system. It requires Congress to set spending limits on the costs that federal regulations impose on businesses, states, and local governments. The bill also requires better tracking and reporting of these regulatory costs.
##
Who It Affects
- Private businesses and corporations
- State and local governments
- Small businesses and organizations
- Federal agencies that create regulations
- Congress and budget committees
- The Congressional Budget Office
- The Office of Management and Budget
##
Key Provisions
- The President must submit projections of federal regulatory costs to Congress each year, starting at least 120 days after the law passes (Sec. 2)
- Congress must set an annual limit on total federal regulatory costs in its budget, similar to how it sets spending limits (Sec. 322(a))
- The Congressional Budget Office must estimate how much a new bill or regulation will cost businesses to comply with, for the first year and the next four years (Sec. 323(a))
- Federal agencies cannot issue major guidance documents without public notice and comment periods (Sec. 4(b))
- The Office of Management and Budget must block enforcement of any regulation that would exceed the regulatory cost limit Congress sets (Sec. 324(d))
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What Changes
If this becomes law, Congress will have to decide on a maximum total amount of regulatory costs allowed each year. Federal agencies will have to stop enforcing new regulations that would push costs above that limit. Agencies will also have to provide more detailed cost information when they create new rules. Congress and the public will receive regular reports measuring actual regulatory costs compared to estimated costs.
##
Important Definitions
- **Federal regulatory cost**: All money that private businesses, states, and local governments must spend to follow federal regulations and laws. This does NOT include any benefits from those regulations (Sec. 321(4))
- **Federal regulation, rule, or statement**: Any official agency guidance, including documents issued after public comment periods (Sec. 321(3))
- **Direct cost of Federal regulation**: All money the federal government itself spends to write and enforce federal regulations (Sec. 321(2))
- **Guidance document**: An agency statement that explains a policy or interprets a law, but is not an official rule (Sec. 4(a)(2))
- **Significant guidance document**: A guidance document that will cost at least $100,000,000 per year or seriously harm the economy, jobs, or competition (Sec. 4(a)(3))
- **Regulatory baseline**: A prediction of future federal regulatory costs, adjusted for economic growth (Sec. 321(7))
##
Effective Date
The regulatory cost projection and budget requirements take effect the first fiscal year beginning at least 120 days after the law is passed. Not specified in bill text for other provisions.
I
118TH CONGRESS
1ST SESSION
H. R. 261
To amend the Congressional Budget Act of 1974 to establish a Federal
regulatory budget and to impose cost controls on that budget, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 10, 2023
Mr. GOOD of Virginia (for himself, Ms. MACE, Mrs. MILLER of Illinois, and
Mr. MOORE of Alabama) introduced the following bill; which was referred
to the Committee on the Budget, and in addition to the Committees on
Rules, the Judiciary, Oversight and Accountability, and Small Business,
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 amend the Congressional Budget Act of 1974 to establish
a Federal regulatory budget and to impose cost controls
on that budget, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Article I Regulatory
4
Budget Act’’.
5
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•HR 261 IH
SEC. 2. PRESIDENT’S ANNUAL BUDGET SUBMISSIONS.
1
Section 1105(a) of title 31, United States Code, is
2
amended by adding at the end the following:
3
‘‘(40)(A) for the first fiscal year that begins at
4
least 120 days after the date of enactment of this
5
paragraph, and every fiscal year thereafter until the
6
fifth fiscal year that begins after the date of enact-
7
ment of this paragraph, a projection of the Federal
8
regulatory cost of any proposed Federal regulation,
9
rule, or statement (as such terms are defined in sec-
10
tion 321 of the Congressional Budget Act of 1974)
11
for the fiscal year and at least each of the 4 ensuing
12
fiscal years, which shall include—
13
‘‘(i) the projection of the Federal regu-
14
latory cost by agency and program; and
15
‘‘(ii) any changes in a Federal regulation,
16
rule, or statement in the Unified Agenda of
17
Federal Regulatory and Deregulatory Actions,
18
compiled by the Regulatory Information Service
19
Center of the General Services Administration;
20
and
21
‘‘(B) for the fifth fiscal year that begins after
22
the date of enactment of this paragraph, and every
23
fiscal year thereafter, a regulatory authority budget
24
analysis of the Federal regulatory cost of complying
25
with all current and proposed Federal regulations,
26
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•HR 261 IH
rules, and statements and proposals (as such terms
1
are defined in section 321 of the Congressional
2
Budget Act of 1974) for complying with section 322
3
of the Congressional Budget Act of 1974 for the fis-
4
cal year for which the budget is submitted and the
5
4 fiscal years after that year, which shall include a
6
regulatory authority budget analysis of the Federal
7
regulatory cost by agency and program.’’.
8
SEC. 3. ESTIMATION AND DISCLOSURE OF COSTS OF FED-
9
ERAL REGULATION.
10
(a) COSTS TO PRIVATE SECTOR OF NEW FEDERAL
11
REGULATIONS.—Chapter 6 of title 5, United States Code,
12
popularly known as the ‘‘Regulatory Flexibility Act’’, is
13
amended—
14
(1) in section 603—
15
(A) in subsection (a), in the second sen-
16
tence, by inserting before the period the fol-
17
lowing: ‘‘and shall discuss in detail whether the
18
cost to businesses of complying with the pro-
19
posed rule will vary depending on the size of the
20
business and, if so, to what extent the cost will
21
vary and what factors contribute to the vari-
22
ation’’;
23
(B) in subsection (c)—
24
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•HR 261 IH
(i) by redesignating paragraphs (1),
1
(2), (3), and (4) as subparagraphs (A),
2
(B), (C), and (D), respectively, and adjust-
3
ing the margin accordingly;
4
(ii) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
5
(iii) by striking ‘‘Consistent with the’’
6
and inserting the following:
7
‘‘(2) The analysis of significant alternatives to the
8
proposed rule shall include a detailed analysis of the costs
9
and benefits of the proposed rule and each alternative,
10
which shall separately address the costs and benefits for
11
each industry.
12
‘‘(3) Consistent with the’’; and
13
(C) by adding at the end the following:
14
‘‘(e) Each initial regulatory flexibility analysis shall
15
also contain a description of the nature and amount of
16
monetary costs that will be incurred by small entities,
17
other businesses, and individuals in complying with the
18
proposed rule.’’;
19
(2) in section 604(a)—
20
(A) in the first paragraph designated as
21
paragraph (6) (relating to minimization of sig-
22
nificant economic impacts), by striking ‘‘and’’
23
at the end;
24
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•HR 261 IH
(B) by redesignating the second paragraph
1
(6) (relating to covered agencies), as paragraph
2
(8); and
3
(C) by inserting after paragraph (6) the
4
following:
5
‘‘(7) a statement of the nature and amount of
6
monetary costs that will be incurred by small enti-
7
ties, other businesses, and individuals in complying
8
with the rule; and’’; and
9
(3) in section 607, by inserting before the pe-
10
riod the following: ‘‘, except that estimates of mone-
11
tary costs under sections 603(d) and 604(a)(7) shall
12
only be in the form of a numerical description’’.
13
(b) AGENCY REPORTS.—Each agency that prepares
14
an initial regulatory flexibility analysis under chapter 6
15
of title 5, United States Code, shall, at the same time sub-
16
mit to each House of Congress, the Congressional Budget
17
Office, and the Office of Management and Budget a cost
18
estimate and cost benefit analysis of any new proposed
19
regulations, rules, or statements that would have a Fed-
20
eral regulatory cost (as defined in section 321 of the Con-
21
gressional Budget Act of 1974, as added by this Act) of
22
at least $100,000,000 for any fiscal year.
23
SEC. 4. GUIDANCE DOCUMENTS.
24
(a) DEFINITIONS.—In this section—
25
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•HR 261 IH
(1) the terms ‘‘agency’’ and ‘‘rule’’ have the
1
meanings given such terms in section 551 of title 5,
2
United States Code;
3
(2) the term ‘‘guidance document’’ means an
4
agency statement of general applicability and future
5
effect, other than a rule, that sets forth a policy on
6
a statutory, regulatory, or technical issue or an in-
7
terpretation of a statutory or regulatory issue; and
8
(3) the term ‘‘significant guidance document’’—
9
(A) means a guidance document that the
10
Office of Management and Budget determines
11
will be disseminated to regulated entities or the
12
general public and may reasonably be antici-
13
pated to—
14
(i) lead to an annual effect of not less
15
than $100,000,000 on, or adversely affect
16
in a material way, the economy, a sector of
17
the economy, productivity, competition,
18
jobs, the environment, public health or
19
safety, or State, local, or tribal govern-
20
ments or communities;
21
(ii) create a serious inconsistency or
22
otherwise interfere with an action taken or
23
planned by an agency other than the agen-
24
cy issuing the guidance document;
25
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•HR 261 IH
(iii) materially alter the budgetary im-
1
pact of entitlements, grants, user fees, or
2
loan programs or the rights or obligations
3
of recipients thereof; or
4
(iv) raise novel legal or policy issues
5
arising out of legal mandates, the priorities
6
of the President, or the principles set forth
7
in Executive Order 12866 (5 U.S.C. 601
8
note; relating to regulatory planning and
9
review); and
10
(B) does not include a guidance document
11
that the Office of Management and Budget de-
12
termines—
13
(i) relates to regulations issued in ac-
14
cordance with the formal rulemaking provi-
15
sions of sections 556 and 557 of title 5,
16
United States Code;
17
(ii) pertains to a military or foreign
18
affairs function of the United States, other
19
than procurement regulations and regula-
20
tions involving the import or export of non-
21
defense articles and services;
22
(iii) relates to regulations that are
23
limited to agency organization, manage-
24
ment, or personnel matters; or
25
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•HR 261 IH
(iv) is within a category of guidance
1
documents exempted by the Administrator
2
of the Office of Information and Regu-
3
latory Affairs.
4
(b) LIMITATION
ON GUIDANCE DOCUMENTS.—An
5
agency may not issue a significant guidance document un-
6
less the agency issues the significant guidance document
7
after notice and an opportunity for comment in accord-
8
ance with the requirements for the promulgation of a rule
9
under chapter 5 of title 5, United States Code.
10
(c) PRIVATE RIGHT OF ACTION.—Any person ag-
11
grieved of an action taken or failed to be taken under a
12
guidance document that was not issued in accordance with
13
subsection (b) may bring a civil action in an appropriate
14
district court of the United States alleging that the guid-
15
ance document should have been treated as a significant
16
guidance document.
17
SEC. 5. AMENDMENTS TO THE CONGRESSIONAL BUDGET
18
ACT OF 1974.
19
(a) FEDERAL REGULATORY BUDGET COST CONTROL
20
SYSTEM.—Title III of the Congressional Budget Act of
21
1974 is amended—
22
(1) by inserting before section 300 the fol-
23
lowing:
24
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•HR 261 IH
‘‘PART A—GENERAL PROVISIONS’’;
1
and
2
(2) by adding at the end the following:
3
‘‘PART B—FEDERAL REGULATORY BUDGET COST
4
CONTROL
5
‘‘SEC. 321. DEFINITIONS.
6
‘‘In this part—
7
‘‘(1) the term ‘CBO’ means the Congressional
8
Budget Office;
9
‘‘(2) the term ‘direct cost of Federal regulation’
10
means all costs incurred by, and expenditures re-
11
quired of, the Federal Government in issuing and
12
enforcing Federal regulations, rules, and statements
13
and Federal statutes;
14
‘‘(3) the term ‘Federal regulation, rule, or
15
statement’—
16
‘‘(A) includes any guidance document
17
issued after notice and an opportunity for com-
18
ment in accordance with the requirements for
19
the promulgation of a rule under chapter 5 of
20
title 5, United States Code; and
21
‘‘(B) does not include—
22
‘‘(i) a Federal regulation, rule, or
23
statement applying to—
24
‘‘(I) the military; or
25
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•HR 261 IH
‘‘(II) agency organization, man-
1
agement, or personnel; or
2
‘‘(ii) a Federal regulation, rule, or
3
statement designated by the President as
4
being—
5
‘‘(I) necessary because of an im-
6
minent threat to health or safety or
7
other emergency;
8
‘‘(II) necessary for the enforce-
9
ment of criminal laws; or
10
‘‘(III) necessary for national se-
11
curity;
12
‘‘(4) the term ‘Federal regulatory cost’—
13
‘‘(A) means all costs incurred by, and ex-
14
penditures required of, the private sector,
15
States, or local governments in complying with
16
any Federal regulation, rule, or statement or
17
any Federal statute; and
18
‘‘(B) does not include the value of any ben-
19
efit under the Federal regulation, rule, or state-
20
ment or the Federal statute;
21
‘‘(5) the term ‘gross domestic product’ means
22
the gross domestic product of the United States dur-
23
ing a fiscal year, consistent with Department of
24
Commerce definitions;
25
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•HR 261 IH
‘‘(6) the term ‘OMB’ means the Office of Man-
1
agement and Budget; and
2
‘‘(7) the term ‘regulatory baseline’ means the
3
projection described in section 326(a) of the Federal
4
regulatory cost for the fiscal year after the date of
5
the projection and the outyears.
6
‘‘SEC. 322. ESTABLISHMENT OF LEVEL AND ALLOCATIONS.
7
‘‘(a) ESTABLISHMENT OF LEVEL.—
8
‘‘(1) IN GENERAL.—In addition to the require-
9
ments under section 301, a concurrent resolution on
10
the budget for a fiscal year shall set forth the appro-
11
priate level for the Federal regulatory cost for the
12
fiscal year and for at least each of the 4 ensuing fis-
13
cal years.
14
‘‘(2) TRANSITION PERIOD.—
15
‘‘(A) IN
GENERAL.—For the first fiscal
16
year that begins at least 120 days after the
17
date of enactment of this section, and each fis-
18
cal year thereafter until the fiscal year de-
19
scribed in section 326(a), the Committee on the
20
Budget of the Senate and the Committee on the
21
Budget of the House of Representatives shall
22
include in the concurrent resolution on the
23
budget for the fiscal year as the appropriate
24
level for the Federal regulatory cost for the fis-
25
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•HR 261 IH
cal year and any other fiscal year covered by
1
the resolution the proposed levels submitted by
2
the President under section 1105(a)(40) of title
3
31, United States Code.
4
‘‘(B) AMENDMENTS.—
5
‘‘(i) IN GENERAL.—In the Senate and
6
the House of Representatives, it shall not
7
be in order to consider an amendment to
8
a concurrent resolution on the budget that,
9
if agreed to, would result in a net increase
10
in a level included pursuant to subpara-
11
graph (A).
12
‘‘(ii) WAIVER AND APPEAL.—A point
13
of order under clause (i) may only be
14
waived by the affirmative vote of three-
15
fifths of the Members, duly chosen and
16
sworn. An affirmative vote of three-fifths
17
of Members, duly chosen and sworn, shall
18
be required to sustain an appeal of the rul-
19
ing of the Chair on a point of order raised
20
under clause (i).
21
‘‘(3) DEFAULT TOTAL.—If there is not a level
22
for the Federal regulatory cost that is in effect for
23
a fiscal year under a concurrent resolution on the
24
budget—
25
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