H.R.3279 - Renewing Efficiency in Government by Budgeting Act of 2025; REG Budgeting Act of 2025 (119th Congress)
Summary
H.R.3279, the Renewing Efficiency in Government by Budgeting Act of 2025, aims to establish a regulatory budgeting process. It requires the Director of the Office of Management and Budget (OMB) to set limits on the total amount of additional unfunded regulatory costs that agencies can impose in a fiscal year. The bill mandates that agencies propose their regulatory cost limits to the OMB Director, who then establishes the final limits, subject to Congressional approval.
Expected Effects
The bill seeks to control the financial impact of federal regulations by imposing a budget-like constraint on regulatory costs. This could lead to a reduction in the number or scope of new regulations, as agencies would need to operate within the established cost limits. The establishment of an Associate Administrator for Regulatory Budgeting within OMB would further institutionalize this regulatory oversight.
Potential Benefits
- Increased Fiscal Accountability: By requiring agencies to operate within a regulatory budget, the bill promotes greater fiscal discipline and accountability in the regulatory process.
- Reduced Regulatory Burden: Setting limits on unfunded regulatory costs could lead to a reduction in the overall regulatory burden on businesses and individuals.
- Enhanced Congressional Oversight: The bill strengthens congressional oversight by requiring congressional approval of regulatory cost limits and mandating reports on regulatory costs.
- Greater Transparency: The bill promotes transparency by requiring the Director of OMB to publish reports on regulatory cost limits and agency compliance.
- Focus on Cost-Effective Regulations: Agencies may be incentivized to prioritize regulations that achieve policy goals in the most cost-effective manner.
Potential Disadvantages
- Potential for Regulatory Gridlock: The requirement for congressional approval of regulatory cost limits could lead to political gridlock and delay the implementation of necessary regulations.
- Reduced Agency Flexibility: The regulatory budgeting process could limit agency flexibility and responsiveness to emerging problems or unforeseen circumstances.
- Difficulty in Quantifying Regulatory Costs: Accurately quantifying the costs of regulations can be challenging, potentially leading to arbitrary or inaccurate cost limits.
- Shifted Costs: Agencies might shift costs to other areas not covered by the regulatory budget, leading to unintended consequences.
- Exemption Loopholes: The exemption for monetary policy could create loopholes, allowing significant regulatory actions to bypass the budgeting process.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on fiscal responsibility and congressional oversight aligns with the Constitution's emphasis on the power of the purse vested in Congress (Article I, Section 9). The requirement for congressional approval of regulatory cost limits reinforces the principle of legislative control over executive branch actions. However, the bill does not appear to infringe upon any specific constitutional rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).