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119-hr-849119th Congress

No Regulation Through Litigation Act of 2025

Sponsored By: Representative Cloud, Michael [R-TX-27]

Introduced

Summary

Limits on regulation through settlements and consent decrees. This bill would restrict federal agencies from using settlement agreements or consent decrees to produce regulations or guidance and would bar fee awards tied to those outcomes.

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  • Federal agencies: Agency heads would be barred from entering consent decrees that exceed the issuing court's authority. This aims to keep major policy changes inside formal rulemaking channels.
  • Plaintiffs and defendants in litigation: The bill would prohibit including payment of attorneys' fees or litigation costs in any settlement or consent decree that results in a regulation or guidance document. That reduces financial incentives to seek regulatory changes through suits.
  • Rule clarity and scope: The bill defines what counts as a "Guidance document" and a "Regulation" with examples like memoranda, notices, and rulemaking under sections 553, 556, and 557. That narrows when the prohibitions apply.
  • Exemptions and limits: The Office of Information and Regulatory Affairs' Administrator could exempt certain categories, including military and foreign affairs and narrow organizational rules.

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Bill Overview

Analyzed Economic Effects

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

Clear lines between guidance and rules

If enacted, this bill would define what counts as a nonbinding guidance document and what counts as a binding regulation. Guidance would include memos, notices, letters, blog posts, advisories, and similar items. Regulations would be binding rules made through formal or informal rulemaking. Some areas, like military or personnel rules, would be excluded.

Limits on agency consent decrees

If enacted, agency heads would be barred from entering consent decrees that require more than a court is allowed to order. Agencies could still settle cases, but only within the court’s legal power.

No attorney fees in rulemaking settlements

If enacted, federal agencies would not be able to pay attorneys’ fees or litigation costs in settlements or consent decrees that lead to a regulation or guidance document. This would apply only when a federal agency is a party to the deal. Private parties and their lawyers could not collect those fees from the agency in those cases.

Sponsors & CoSponsors

Sponsor

Cloud, Michael [R-TX-27]

TX • R

Cosponsors

  • Rep. Ogles, Andrew [R-TN-5]

    TN • R

    Sponsored 1/31/2025

  • Rep. Higgins, Clay [R-LA-3]

    LA • R

    Sponsored 1/31/2025

  • Rep. Crane, Elijah [R-AZ-2]

    AZ • R

    Sponsored 1/31/2025

  • Rep. Tiffany, Thomas P. [R-WI-7]

    WI • R

    Sponsored 1/31/2025

  • Rep. Perry, Scott [R-PA-10]

    PA • R

    Sponsored 1/31/2025

  • Rep. Palmer, Gary J. [R-AL-6]

    AL • R

    Sponsored 2/14/2025

  • Rep. Harris, Mark [R-NC-8]

    NC • R

    Sponsored 8/26/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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