IB 

Union Calendar No. 736 

118TH CONGRESS 

2D SESSION H. R. 7867 

[Report No. 118–901, Part I] 

To amend the Unfunded Mandates Reform Act of 1995 to require the Director of the Office of Management and Budget to establish a limit for 

the total amount of additional unfunded regulatory costs that may be 

imposed in a fiscal year, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 5, 2024 

Mr. FALLON (for himself, Mr. COMER, and Ms. FOXX) introduced the following bill; which was referred to the Committee on Oversight and Accountability, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

DECEMBER 18, 2024 

Reported from the Committee on Oversight and Accountability with an 

amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

DECEMBER 18, 2024 

Committee on the Judiciary discharged; committed to the Committee of the 

Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on April 5, 2024] 


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A BILL 

To amend the Unfunded Mandates Reform Act of 1995 

to require the Director of the Office of Management 

and Budget to establish a limit for the total amount 

of additional unfunded regulatory costs that may be imposed in a fiscal year, and for other purposes. 


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•HR 7867 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Renewing Efficiency in 

5 Government by Budgeting Act of 2024’’ or the ‘‘REG Budg6 eting Act of 2024’’. 

7 SEC. 2. REGULATORY BUDGETING. 

8 (a) REGULATORY BUDGETING.—Title II of the Un9 funded Mandates Reform Act of 1995 (Public Law 104– 

10 4; 15 U.S.C. 1531 et seq.) is amended by adding at the 

11 end the following: 

12 ‘‘SEC. 210. REGULATORY BUDGETING. 

13 ‘‘(a) LIMIT FOR THE AMOUNT OF ADDITIONAL UN14 FUNDED REGULATORY COSTS THAT MAY BE IMPOSED

15 EACH FISCAL YEAR.— 

16 ‘‘(1) ESTABLISHMENT.— 

17 ‘‘(A) IN GENERAL.—On or before September 

18 30 of each fiscal year, the Director shall estab19 lish— 

20 ‘‘(i) a limit on the amount of addi21 tional unfunded regulatory costs that may 

22 be imposed collectively by the heads of all 

23 agencies in the next fiscal year; and 

24 ‘‘(ii) as part of the limit established 

25 under clause (i), a limit on the amount of 


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1 additional unfunded regulatory costs that 

2 may be imposed individually by the head of 

3 each agency in the next fiscal year. 

4 ‘‘(B) ADDITIONAL MATTERS RELATED TO

5 LIMIT.—The Director may require as part of a 

6 limit under subparagraph (A), that cumulative 

7 unfunded regulatory costs be reduced, including 

8 for the purpose of offsetting any additional un9 funded regulatory costs that may be imposed by 

10 the heads of agencies during the fiscal year for 

11 which the limit is established. 

12 ‘‘(C) CONGRESSIONAL APPROVAL.—The Di13 rector may not establish a limit under subpara14 graph (A) that allows the head of an agency to 

15 impose an additional unfunded regulatory cost 

16 unless Congress approves such limit. 

17 ‘‘(2) REPORTS.— 

18 ‘‘(A) AGENCY-WIDE LIMIT.—Not later than 

19 7 days after establishing a limit under para20 graph (1)(A)(i), the Director shall— 

21 ‘‘(i) submit a report that identifies the 

22 limit established, and contains a reasoned 

23 statement of the basis and purpose of estab24 lishing such limit, to the appropriate con25 gressional committees; and 


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1 ‘‘(ii) publish the report on the website 

2 designated under subparagraph (D). 

3 ‘‘(B) AGENCY-SPECIFIC LIMIT.—Not later 

4 than 7 days after establishing a limit under 

5 paragraph (1)(A)(ii) with respect to an agency, 

6 the Director shall— 

7 ‘‘(i) submit a report that identifies the 

8 limit established, and contains a reasoned 

9 statement of the basis and purpose of estab10 lishing such limit, to— 

11 ‘‘(I) the appropriate congressional 

12 committees; and 

13 ‘‘(II) each standing committee 

14 with jurisdiction under the rules of the 

15 House of Representatives or the Senate 

16 to report a bill to amend the provisions 

17 of law under which the head of the 

18 agency is authorized to promulgate 

19 rules; and 

20 ‘‘(ii) publish the report on the website 

21 designated under subparagraph (D). 

22 ‘‘(C) PROHIBITION ON PROMULGATING CER23 TAIN RULES UNTIL SUBMISSION OF REPORT TO

24 APPROPRIATE CONGRESSIONAL COMMITTEES.— 


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1 ‘‘(i) IN GENERAL.—The head of an 

2 agency may not finalize a rule that imposes 

3 an additional unfunded regulatory cost 

4 until the Director submits to the appro5 priate congressional committees the reports 

6 required by subparagraph (A)(i) and sub7 paragraph (B)(i) for the fiscal year in 

8 which the rule would be finalized. 

9 ‘‘(ii) EXCEPTION.—The prohibition 

10 under clause (i) shall not apply to any rule 

11 with respect to which the President issues 

12 an Executive Order stating that the rule 

13 should take effect because the rule is— 

14 ‘‘(I) necessary— 

15 ‘‘(aa) because of an emer16 gency, including an imminent 

17 threat to health or safety; 

18 ‘‘(bb) for the enforcement of 

19 criminal laws; or 

20 ‘‘(cc) for national security; or 

21 ‘‘(II) being issued pursuant to a 

22 law implementing an international 

23 trade agreement. 

24 ‘‘(D) DESIGNATION OF WEBSITE.—Not later 

25 than 90 days after the date of the enactment of 


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1 this subsection, the Director shall designate a 

2 website through which the Director will publish 

3 reports in accordance with subparagraphs (A) 

4 and (B). 

5 ‘‘(b) RULES RESULTING IN LIMIT BEING EXCEED6 ED.— 

7 ‘‘(1) CONGRESSIONAL APPROVAL.—If the promul8 gation of any individual rule would result in a limit 

9 established under subsection (a)(1)(A) being exceeded, 

10 the rule may not go into effect during the fiscal year 

11 in which the rule is promulgated unless and until 

12 Congress approves such rule during such fiscal year. 

13 ‘‘(2) NOTIFICATION.—In the case that the head of 

14 an agency determines that finalizing a rule may re15 sult in the amount of additional unfunded regulatory 

16 costs imposed by the head of the agency during that 

17 fiscal year to exceed a limit established under sub18 section (a)(1)(A), the head of the agency— 

19 ‘‘(A) shall submit, before promulgating a 

20 general notice of a final rule with respect to such 

21 rule, a notification to the Director that in22 cludes— 

23 ‘‘(i) a justification for exceeding such 

24 limit as a result of such rule; 


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1 ‘‘(ii) by how much the limit will be ex2 ceeded as a result of such rule; and 

3 ‘‘(iii) whether the head of the agency 

4 identified or considered any alternatives to 

5 such rule that would have imposed a lesser 

6 amount of additional unfunded regulatory 

7 costs, and if so, how much less such amount 

8 would have been; and 

9 ‘‘(B) may not promulgate such rule until 

10 the head of the agency receives from the Director 

11 a notification under paragraph (3)(C) with re12 spect to such rule. 

13 ‘‘(3) DETERMINATION BY DIRECTOR.—After re14 ceiving a notification under paragraph (2), the Direc15 tor shall— 

16 ‘‘(A) determine whether finalizing such rule 

17 during that fiscal year will result in a limit es18 tablished under subsection (a)(1)(A) being ex19 ceeded; 

20 ‘‘(B) determine whether the Director agrees 

21 with the determination of the head of the agency 

22 that such rule should be finalized notwith23 standing such limit; and 


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1 ‘‘(C) submit a written notification to the 

2 head of the agency on the determinations made 

3 under subparagraphs (A) and (B). 

4 ‘‘(4) REPORT TO CONGRESS.—In the case that 

5 the Director determines under paragraph (3)(B) that 

6 the Director agrees with a determination by the head 

7 of an agency to finalize a rule that will result in a 

8 limit established under subsection (a)(1)(A) being ex9 ceeded, not later than 7 days after the Director sub10 mits a notification to the head of an agency under 

11 paragraph (3)(C) with respect to such determination, 

12 the Director shall submit to the appropriate congres13 sional committees, each standing committee with ju14 risdiction under the rules of the House of Representa15 tives or the Senate to report a bill to amend the pro16 vision of law under which the rule is to be promul17 gated, and the Comptroller General, a notification re18 garding such determination by the Director that in19 cludes— 

20 ‘‘(A) the information provided by the head 

21 of the agency to the Director under paragraph 

22 (2)(A) with respect to such rule; and 

23 ‘‘(B) a reasoned statement of the basis and 

24 purpose of such determination. 


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1 ‘‘(c) STATEMENT REGARDING ADDITIONAL UNFUNDED

2 REGULATORY COSTS.—In publishing a general notice of a 

3 final rule, the head of an agency shall include in such notice 

4 a statement that includes— 

5 ‘‘(1) whether the rule will result in the amount 

6 of additional unfunded regulatory costs imposed by 

7 the agency during the fiscal year in which the rule is 

8 finalized to exceed a limit established under sub9 section (a)(1)(A); and 

10 ‘‘(2) in the case that the rule will result in the 

11 amount of additional unfunded regulatory costs im12 posed by the agency during the fiscal year in which 

13 the rule is finalized to exceed a limit established 

14 under subsection (a)(1)(A)— 

15 ‘‘(A) by how much the limit will be exceeded 

16 as a result of the rule; 

17 ‘‘(B) a justification for exceeding such limit 

18 as a result of the rule; 

19 ‘‘(C) whether the agency identified or con20 sidered any alternatives to the rule that would 

21 have imposed a lesser amount of additional un22 funded regulatory costs, and if so, how much less 

23 such amount would have been; 


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1 ‘‘(D) that the head of the agency submitted 

2 a notification to the Director under subsection 

3 (b)(2); and 

4 ‘‘(E) the determinations made by the Direc5 tor under subsection (b)(3) with respect to such 

6 rule. 

7 ‘‘(d) ANNUAL REPORT.—On or before October 30 of 

8 each fiscal year, the Director shall submit to the appro9 priate congressional committees a report on the administra10 tion by the Director of the limits established under sub11 section (a)(1)(A) for the prior fiscal year, including— 

12 ‘‘(1) whether the total amount of additional un13 funded regulatory costs imposed by all agencies in the 

14 prior fiscal year met or exceeded the limit established 

15 under clause (i) of such subsection; 

16 ‘‘(2) whether the total amount of additional un17 funded regulatory costs imposed by the head of each 

18 agency in the prior fiscal year met or exceeded the 

19 limit established for such costs under clause (ii) of 

20 such subsection; 

21 ‘‘(3) a detailed statement that— 

22 ‘‘(A) identifies by how much, and as a re23 sult of finalizing which rule or rules, any such 

24 limit was exceeded; and 


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1 ‘‘(B) includes a justification for exceeding 

2 any such limit as a result of finalizing such rule 

3 or rules; and 

4 ‘‘(4) a list of each rule with respect to which the 

5 Director determined under subsection (b)(3)(B) that 

6 the Director agreed with a determination by the head 

7 of an agency to finalize the rule notwithstanding a 

8 limit established under subsection (a)(1)(A). 

9 ‘‘(e) DEFINITIONS.—In this section: 

10 ‘‘(1) ADDITIONAL UNFUNDED REGULATORY

11 COST.—The term ‘additional unfunded regulatory 

12 cost’ means an unfunded regulatory cost that had not 

13 been required to be incurred by a State, local, or 

14 Tribal government, or the private sector, as a result 

15 of a Federal mandate in a rule during any preceding 

16 fiscal year. 

17 ‘‘(2) APPROPRIATE CONGRESSIONAL COMMIT18 TEES.—The term ‘appropriate congressional commit19 tees’ means— 

20 ‘‘(A) the Committee on Oversight and Ac21 countability of the House of Representatives; and 

22 ‘‘(B) the Committee on Homeland Security 

23 and Governmental Affairs of the Senate. 

24 ‘‘(3) COST.—The term ‘cost’ means— 

25 ‘‘(A) a direct cost; or 


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1 ‘‘(B) a quantifiable cost that can be esti2 mated using the methods and concepts described 

3 in Office of Management and Budget Circular 

4 A–4 issued on September 17, 2003. 

5 ‘‘(4) CUMULATIVE UNFUNDED REGULATORY

6 COSTS.—The term ‘cumulative unfunded regulatory 

7 costs’ means all costs required to be incurred by a 

8 State, local, or Tribal government, or by the private 

9 sector as a result of all Federal mandates included in 

10 rules during all preceding fiscal years. 

11 ‘‘(5) DIRECTOR.—The term ‘Director’ means the 

12 Director of the Office of Management and Budget. 

13 ‘‘(6) UNFUNDED REGULATORY COST.—The term 

14 ‘unfunded regulatory cost’ means a cost required to be 

15 incurred by a State, local, or Tribal government, or 

16 by the private sector, as a result of a Federal man17 date included in a rule.’’. 

18 (b) ANALYSIS OF WHETHER RULE EXCEEDS BUDG19 ET.—Section 202 of the Unfunded Mandates Reform Act 

20 of 1995 (Public Law 104–4; 2 U.S.C. 1532) is amended— 

21 (1) in subsection (a)— 

22 (A) in paragraph (4), by striking ‘‘; and’’ 

23 inserting a semicolon; 

24 (B) in paragraph (5), by striking the period 

25 at the end and inserting ‘‘; and’’; and 


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1 (C) by adding at the end the following: 

2 ‘‘(6) an analysis of whether the proposed rule or 

3 final rule, as applicable, may or will result in the 

4 total amount of additional unfunded regulatory costs 

5 (as that term is defined in section 210) imposed by 

6 the head of the agency during the fiscal year in which 

7 the rule is issued exceeding a limit established under 

8 section 210(a)(1)(A)(ii) for the agency.’’; and 

9 (2) in subsection (c), by striking ‘‘subsection (a)’’ 

10 each place such term appears and inserting ‘‘para11 graphs (1) through (5) of subsection (a)’’. 

12 (c) EFFECTIVE DATE.—Notwithstanding section 209 

13 of the Unfunded Mandates Reform Act of 1995 (Public Law 

14 104–4; 15 U.S.C. 1531 note), the amendments made by this 

15 Act shall take effect on the date of the enactment of this 

16 Act. 


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Union Calendar No. 736 

118TH CONGRESS 

2D SESSION H. R. 7867 

[Report No. 118–901, Part I] 

A BILL 

To amend the Unfunded Mandates Reform Act of 

and for other purposes. latory costs that may be imposed in a fiscal year, the total amount of additional unfunded reguManagement and Budget to establish a limit for 1995 to require the Director of the Office of 

DECEMBER 18, 2024 

Reported from the Committee on Oversight and 

Accountability with an amendment 

DECEMBER 18, 2024 

Committee on the Judiciary discharged; committed to the 

Union and ordered to be printed Committee of the Whole House on the State of the 


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