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Agencies Must Offset Costs of New Rules (Administrative PAYGO)

This bill requires federal agencies to find equivalent savings whenever they propose a new discretionary rule that increases mandatory government spending (direct spending). The goal is to enforce fiscal discipline, ensuring that new administrative costs are not added without being offset by cuts elsewhere, thereby protecting taxpayers from unchecked spending growth. These requirements are temporary and expire at the end of 2024.
Key points
Federal agencies must propose offsetting cuts to mandatory spending before finalizing any new rule that increases such spending.
The Office of Management and Budget (OMB) reviews and must approve the proposed offsets to ensure they cover the new costs.
The requirements can be waived by the OMB Director if necessary for essential services or effective program delivery.
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Additional Information
Print number: 118_S_4376
Sponsor: Sen. Braun, Mike [R-IN]
Process start date: 2024-05-21