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119-hr-3279119th CongressWALLET

REG Budgeting Act of 2025

Sponsored By: Representative Fallon, Pat [R-TX-4]

Introduced

Summary

Caps on new unfunded regulatory costs. This bill would create a regulatory budget inside the Office of Management and Budget that limits total and agency-specific unfunded costs from federal rules and ties rulemaking to reporting and congressional approval when limits would be exceeded.

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  • Federal agencies would have to submit a proposed agency limit 90 days before the OMB Director sets that limit and may not finalize rules that add unfunded regulatory costs until the Director’s required reports are published. Agencies face a default no-net-increase limit unless Congress approves a net increase.
  • The OMB Director would set a collective and agency-specific cap by Sept. 30 each fiscal year and must explain the basis within 7 days; the bill also creates an Associate Administrator for Regulatory Budgeting in OMB’s Office of Information and Regulatory Affairs to coordinate implementation.
  • Rules that would push costs past the caps cannot take effect without a congressional joint resolution, and courts can review agency compliance under Chapter 7 of title 5 U.S.C.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

Limits on agency rule costs

If enacted, the OMB Director would set, by September 30 each year, a cap on new unfunded regulatory costs for all agencies and for each agency. The Director could require agencies to cut prior cumulative costs to stay within the cap. A higher cap that allows any net increase for an agency would need a joint resolution of Congress; until then, a no‑net‑increase cap would apply. Agencies could not finalize cost‑adding rules until the required limit reports are sent to Congress, unless the President fast‑tracks a rule for an emergency, criminal law enforcement, or national security, or it implements a trade agreement. If a single rule would push an agency over its cap, it could not take effect that year unless Congress approves that rule. If an agency thinks a rule may exceed its cap, it would have to notify the OMB Director with the amount and justification and wait for written determinations. A blocked rule could take effect in a later year if its costs are counted in that year’s limits and, if that year allows a net increase, Congress approves those limits.

Federal Reserve monetary policy exempt

If enacted, Federal Reserve rules on monetary policy would not be subject to these cost caps or reports. Actions by the Board of Governors and the FOMC on monetary policy would be excluded.

Court review of rule budgets

If enacted, a person harmed by agency action under these rule‑budget limits could go to court. Courts that review rules under the Administrative Procedure Act could hear these cases. Courts would check agency compliance under Chapter 7 of title 5 and order remedies allowed by that chapter.

Public reports on rule limits

If enacted, the OMB Director would publish each overall and agency limit within 7 days of setting them, with reasons. The Director would choose a public website within 90 days after enactment. Each year by October 30, the Director would report which agencies met or exceeded limits, which rules caused exceedances, and why. When the Director agrees a rule should proceed despite a limit, Congress and the Comptroller General would be notified within 7 days.

New rule budget lead and methods

If enacted, a new Associate Administrator for Regulatory Budgeting at OIRA would oversee this system. The President would appoint the first official within 30 days, and guidelines would be issued within 90 days. The bill would define how costs are measured, including using methods from OMB Circular A‑4, and define what counts as additional unfunded costs. Agencies would have to send their proposed cost limits and detailed justifications to OMB at least 90 days before OMB sets the final limits.

Sponsors & CoSponsors

Sponsor

Fallon, Pat [R-TX-4]

TX • R

Cosponsors

  • Rep. Comer, James [R-KY-1]

    KY • R

    Sponsored 5/8/2025

  • Rep. Foxx, Virginia [R-NC-5]

    NC • R

    Sponsored 5/8/2025

Roll Call Votes

No roll call votes available for this bill.

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