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 Direc-
tor 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 fol-
lowing bill; which was referred to the Committee on Oversight and Ac-
countability, and in addition to the Committee on the Judiciary, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee 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 im-
posed in a fiscal year, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Renewing Efficiency in 
Government by Budgeting Act of 2024’’ or the ‘‘REG Budg-
eting Act of 2024’’. 
SEC. 2. REGULATORY BUDGETING. 
(a) REGULATORY BUDGETING.—Title II of the Un-
funded 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: 
‘‘SEC. 210. REGULATORY BUDGETING. 
‘‘(a) LIMIT FOR THE AMOUNT OF ADDITIONAL UN-
FUNDED REGULATORY COSTS THAT MAY BE IMPOSED 
EACH FISCAL YEAR.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN GENERAL.—On or before September 
30 of each fiscal year, the Director shall estab-
lish— 
‘‘(i) a limit on the amount of addi-
tional 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 
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additional unfunded regulatory costs that 
may be imposed individually by the head of 
each agency in the next fiscal year. 
‘‘(B) ADDITIONAL
MATTERS
RELATED
TO 
LIMIT.—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 un-
funded regulatory costs that may be imposed by 
the heads of agencies during the fiscal year for 
which the limit is established. 
‘‘(C) CONGRESSIONAL APPROVAL.—The Di-
rector may not establish a limit under subpara-
graph (A) that allows the head of an agency to 
impose an additional unfunded regulatory cost 
unless Congress approves such limit. 
‘‘(2) REPORTS.— 
‘‘(A) AGENCY-WIDE LIMIT.—Not later than 
7 days after establishing a limit under para-
graph (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 estab-
lishing such limit, to the appropriate con-
gressional committees; and 
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‘‘(ii) publish the report on the website 
designated under subparagraph (D). 
‘‘(B) AGENCY-SPECIFIC
LIMIT.—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 estab-
lishing 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). 
‘‘(C) PROHIBITION ON PROMULGATING CER-
TAIN RULES UNTIL SUBMISSION OF REPORT TO 
APPROPRIATE CONGRESSIONAL COMMITTEES.— 
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‘‘(i) IN
GENERAL.—The head of an 
agency may not finalize a rule that imposes 
an additional unfunded regulatory cost 
until the Director submits to the appro-
priate congressional committees the reports 
required by subparagraph (A)(i) and sub-
paragraph (B)(i) for the fiscal year in 
which the rule would be finalized. 
‘‘(ii) 
EXCEPTION.—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 emer-
gency, 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. 
‘‘(D) DESIGNATION OF WEBSITE.—Not later 
than 90 days after the date of the enactment of 
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this subsection, the Director shall designate a 
website through which the Director will publish 
reports in accordance with subparagraphs (A) 
and (B). 
‘‘(b) RULES RESULTING IN LIMIT BEING EXCEED-
ED.— 
‘‘(1) CONGRESSIONAL APPROVAL.—If the promul-
gation 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. 
‘‘(2) NOTIFICATION.—In the case that the head of 
an agency determines that finalizing a rule may re-
sult 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 sub-
section (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 in-
cludes— 
‘‘(i) a justification for exceeding such 
limit as a result of such rule; 
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‘‘(ii) by how much the limit will be ex-
ceeded 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 re-
spect to such rule. 
‘‘(3) DETERMINATION BY DIRECTOR.—After re-
ceiving a notification under paragraph (2), the Direc-
tor shall— 
‘‘(A) determine whether finalizing such rule 
during that fiscal year will result in a limit es-
tablished under subsection (a)(1)(A) being ex-
ceeded; 
‘‘(B) determine whether the Director agrees 
with the determination of the head of the agency 
that such rule should be finalized notwith-
standing such limit; and 
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‘‘(C) submit a written notification to the 
head of the agency on the determinations made 
under subparagraphs (A) and (B). 
‘‘(4) REPORT TO CONGRESS.—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 ex-
ceeded, not later than 7 days after the Director sub-
mits a notification to the head of an agency under 
paragraph (3)(C) with respect to such determination, 
the Director shall submit to the appropriate congres-
sional committees, each standing committee with ju-
risdiction under the rules of the House of Representa-
tives or the Senate to report a bill to amend the pro-
vision of law under which the rule is to be promul-
gated, and the Comptroller General, a notification re-
garding such determination by the Director that in-
cludes— 
‘‘(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. 
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‘‘(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). 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) 
ADDITIONAL
UNFUNDED
REGULATORY 
COST.—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. 
‘‘(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional commit-
tees’ means— 
‘‘(A) the Committee on Oversight and Ac-
countability of the House of Representatives; and 
‘‘(B) the Committee on Homeland Security 
and Governmental Affairs of the Senate. 
‘‘(3) COST.—The term ‘cost’ means— 
‘‘(A) a direct cost; or 
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‘‘(B) a quantifiable cost that can be esti-
mated using the methods and concepts described 
in Office of Management and Budget Circular 
A–4 issued on September 17, 2003. 
‘‘(4) 
CUMULATIVE
UNFUNDED
REGULATORY 
COSTS.—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. 
‘‘(5) DIRECTOR.—The term ‘Director’ means the 
Director of the Office of Management and Budget. 
‘‘(6) UNFUNDED REGULATORY COST.—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 man-
date included in a rule.’’. 
(b) ANALYSIS OF WHETHER RULE EXCEEDS BUDG-
ET.—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 
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(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.’’; and 
(2) in subsection (c), by striking ‘‘subsection (a)’’ 
each place such term appears and inserting ‘‘para-
graphs (1) through (5) of subsection (a)’’. 
(c) EFFECTIVE DATE.—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. 
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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 
1995 to require the Director of the Office of 
Management and Budget to establish a limit for 
the total amount of additional unfunded regu-
latory costs that may be imposed in a fiscal year, 
and for other purposes. 
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 
Committee of the Whole House on the State of the 
Union and ordered to be printed 
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