REG Budgeting Act of 2024

Title II of the Unfunded Mandates Reform Act of 1995 (Public Law 104–4; 15 U.S.C. 1531 et seq.) is amended by adding at the end the following:

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.

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.

The Director may not establish a limit under subparagraph (A) that allows the head of an agency to impose an additional unfunded regulatory cost unless Congress approves such limit.

Not later than 7 days after establishing a limit under paragraph (1)(A)(i), 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, to the appropriate congressional committees; and

(ii) publish the report on the website designated under subparagraph (D).

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, 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).

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.

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.

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).

If the promulgation of any individual rule would result in a limit established under subsection (a)(1)(A) being exceeded, 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.

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), 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; and

(iii) whether the head of the agency identified or considered any alternatives to such rule that would have imposed 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.

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;

(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).

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 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) 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.

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); 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)—

(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) whether the agency identified or considered any alternatives to the rule that would have imposed a lesser amount of additional unfunded regulatory costs, and if so, how much less such amount would have been;

(D) that the head of the agency submitted a notification to the Director under subsection (b)(2); and

(E) the determinations made by the Director under subsection (b)(3) with respect to such rule.

On or before October 30 of each fiscal year, the Director shall submit to the appropriate congressional committees a report on the administration by the Director of the limits established under subsection (a)(1)(A) for the prior fiscal year, including—

(1) whether the total amount of additional unfunded regulatory costs imposed by all agencies in the prior fiscal year met or exceeded the limit established under clause (i) of such subsection;

(2) whether the total amount of additional unfunded regulatory costs imposed by the head of each agency in the prior fiscal year met or exceeded the limit established for such costs under clause (ii) of such subsection;

(3) a detailed statement that—

(A) identifies by how much, and as a result of finalizing which rule or rules, any such limit was exceeded; and

(B) includes a justification for exceeding any such limit as a result of finalizing such rule or rules; and

(4) a list of each rule with respect to which the Director determined under subsection (b)(3)(B) that the Director agreed with a determination by the head of an agency to finalize the rule notwithstanding a limit established under subsection (a)(1)(A).

In this section:

The term additional unfunded regulatory cost means an unfunded regulatory cost that had not been required to be incurred by a State, local, or Tribal government, or the private sector, as a result of a Federal mandate in a rule during any preceding fiscal year.

The term appropriate congressional committees means—

(A) the Committee on Oversight and Accountability of the House of Representatives; and

(B) the Committee on Homeland Security and Governmental Affairs of the Senate.

The term cost means—

(A) a direct cost; or

(B) a quantifiable cost that can be estimated using the methods and concepts described in Office of Management and Budget Circular A–4 issued on September 17, 2003.

The term cumulative unfunded regulatory costs means all costs required to be incurred by a State, local, or Tribal government, or by the private sector as a result of all Federal mandates included in rules during all preceding fiscal years.

The term Director means the Director of the Office of Management and Budget.

The term unfunded regulatory cost means a cost required to be incurred by a State, local, or Tribal government, or by the private sector, as a result of a Federal mandate included in a rule.

Section 202 of the Unfunded Mandates Reform Act of 1995 (Public Law 104–4; 2 U.S.C. 1532) is amended—

(1) in subsection (a)—

(A) in paragraph (4), by striking; and inserting a semicolon;

(B) in paragraph (5), by striking the period at the end and inserting; and; and

(C) by adding at the end the following:

(6) an analysis of whether the proposed rule or final rule, as applicable, may or will result in the total amount of additional unfunded regulatory costs (as that term is defined in section 210) imposed by the head of the agency during the fiscal year in which the rule is issued exceeding a limit established under section 210(a)(1)(A)(ii) for the agency.

(C) ; and

(2) in subsection (c), by striking subsection (a) each place such term appears and inserting paragraphs (1) through (5) of subsection (a).

Notwithstanding section 209 of the Unfunded Mandates Reform Act of 1995 (Public Law 104–4; 15 U.S.C. 1531 note), the amendments made by this Act shall take effect on the date of the enactment of this Act.