Federal Regulatory Cost Control: Establishing a Budget for Agency Rules
This Act establishes a new budgeting system to limit the financial burden imposed by federal regulations on businesses and citizens. It requires government agencies to accurately estimate and disclose the monetary costs of compliance, especially for small businesses, before new rules take effect. If new regulations exceed the regulatory cost limit set by Congress, their enforcement may be prohibited by the OMB, protecting the private sector from excessive burdens.
Key points
Creation of a "Regulatory Budget" that sets an annual financial cap on the costs new federal rules can impose on the private sector, states, and local governments.
Increased Transparency: Agencies must provide detailed, numerical estimates of compliance costs for individuals and businesses, including variations based on business size.
Control over Policy: Significant policy statements (guidance documents) with a major economic impact ($100 million+) must undergo public notice and comment, similar to formal rules.
New Enforcement Mechanism: The OMB can block the enforcement of new regulations if they cause the total regulatory cost limit set by Congress to be exceeded.
Expired
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