I 
119TH CONGRESS 
1ST SESSION H. R. 3279 
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 
MAY 8, 2025 
Mr. FALLON (for himself, Mr. COMER, and Ms. FOXX) introduced the fol-
lowing bill; which was referred to the Committee on Oversight and Gov-
ernment Reform, 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 com-
mittee concerned 
A BILL 
To require the Director of the Office of Management and 
Budget to establish a limit for the total amount of addi-
tional unfunded regulatory costs that may be imposed 
in a fiscal year, and for other purposes. 
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 2025’’ or the ‘‘REG 
Budgeting Act of 2025’’. 
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SEC. 2. REGULATORY BUDGETING. 
(a) LIMIT FOR THE AMOUNT OF ADDITIONAL UN-
FUNDED REGULATORY COSTS THAT MAY BE IMPOSED 
EACH FISCAL YEAR.— 
(1) ESTABLISHMENT.— 
(A) OMB LIMIT.—On or before September 
30 of each fiscal year, the Director shall estab-
lish— 
(i) a limit on the amount of additional 
unfunded regulatory costs that may be im-
posed collectively by the heads of all agen-
cies in the next fiscal year; and 
(ii) as part of the limit established 
under clause (i), a limit on the amount of 
additional unfunded regulatory costs that 
may be imposed individually by the head of 
each agency in the next fiscal year. 
(B) PROPOSED AGENCY LIMITS.—Not later 
than 90 days before the date on which the Di-
rector establishes a limit for the head of an 
agency under subparagraph (A)(ii), the head of 
each agency shall submit to the Director— 
(i) a proposed limit on the amount of 
additional unfunded regulatory costs that 
may be imposed by the head of that agency 
in the next fiscal year; and 
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lowing the Director’s submission to Con-
gress under paragraph (2) of a limit de-
scribed in clause (i), and until Congress 
approves such limit, the Director shall im-
plement in lieu of such limit a limit that 
allows no net increase in additional un-
funded regulatory costs to be imposed dur-
ing the applicable fiscal year. 
(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 to the appropriate congres-
sional committees a report that identifies 
the limit established and contains a rea-
soned statement of the basis and purpose 
of establishing such limit (including an 
identification of any cost taken into ac-
count in establishing the limit pursuant to 
subsection (b)(1)(B)(i)); and 
(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 
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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 es-
tablishing such limit (including an identi-
fication of any cost taken into account in 
establishing the limit pursuant to sub-
section (b)(1)(B)(i)) 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.— 
(i) IN
GENERAL.—The head of an 
agency may not finalize a rule that im-
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poses an additional unfunded regulatory 
cost until the Director submits to the ap-
propriate congressional committees the re-
ports required by subparagraph (A)(i) and 
subparagraph (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 enact-
ment of this subsection, the Director shall des-
ignate a website through which the Director will 
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publish reports in accordance with subpara-
graphs (A) and (B). 
(b) RULES RESULTING IN LIMIT BEING EXCEED-
ED.— 
(1) CONGRESSIONAL APPROVAL.— 
(A) PROHIBITION
ON
RULE
TAKING
EF-
FECT.—If the promulgation of any individual 
rule would result in a limit established under 
subsection (a)(1)(A) being exceeded, notwith-
standing any requirement established by the Di-
rector pursuant to subsection (a)(1)(C), 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 by joint resolution. 
(B) ACCOUNTING FOR CERTAIN COSTS IM-
POSED UNDER RULES PROMULGATED BUT NOT 
APPROVED.—In the case that a rule is prohib-
ited from going into effect during the fiscal 
year in which the rule is promulgated because 
Congress does not approve such rule under sub-
paragraph (A), such rule may go into effect 
during any proceeding fiscal year if— 
(i) the head of the agency identifies 
under subsection (a)(1)(B)(ii) the amount 
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of additional unfunded regulatory costs 
that would be imposed in such fiscal year 
if such rule takes effect in that fiscal year; 
(ii) the Director takes into account 
any such costs in establishing the limits for 
that fiscal year under subsection (a)(1)(A); 
and 
(iii) in the case that such limits allow 
for the head of an agency to impose a net 
increase in additional unfunded regulatory 
costs during the fiscal year to which the 
limit applies, Congress approves such lim-
its under subsection (a)(1)(D). 
(2) NOTIFICATION.—In the case that the head 
of an agency determines that finalizing a rule may 
result in the amount of additional unfunded regu-
latory costs imposed by the head of the agency dur-
ing that fiscal year to exceed a limit established 
under subsection (a)(1)(A), notwithstanding any re-
quirement established by the Director pursuant to 
subsection (a)(1)(C), 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— 
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(i) a justification for exceeding such 
limit as a result of such rule; 
(ii) by how much the limit will be ex-
ceeded as a result of such rule; 
(iii) an identification of any require-
ment established by the Director pursuant 
to subsection (a)(1)(C) to avoid exceeding 
such limit as a result of such rule; and 
(iv) whether the head of the agency 
identified or considered any alternatives to 
such rule, or the establishment of addi-
tional requirements by the Director pursu-
ant to subsection (a)(1)(C), that would 
have resulted in the imposition of 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 Direc-
tor a notification under paragraph (3)(C) with 
respect to such rule. 
(3) DETERMINATION BY DIRECTOR.—After re-
ceiving a notification under paragraph (2), the Di-
rector shall— 
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(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, notwithstanding any requirement estab-
lished by the Director pursuant to subsection 
(a)(1)(C); 
(B) determine whether the Director agrees 
with the determination of the head of the agen-
cy that such rule should be finalized notwith-
standing such limit; and 
(C) submit a written notification to the 
head of the agency on the determinations made 
under subparagraphs (A) and (B) of this para-
graph. 
(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, 
notwithstanding any requirement established by the 
Director pursuant to subsection (a)(1)(C), in a limit 
established under subsection (a)(1)(A) being exceed-
ed, not later than 7 days after the Director submits 
a notification to the head of an agency under para-
graph (3)(C) of this subsection with respect to such 
determination, the Director shall submit to the ap-
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propriate congressional committees, each standing 
committee with jurisdiction under the rules of the 
House of Representatives or the Senate to report a 
bill to amend the provision of law under which the 
rule is to be promulgated, and the Comptroller Gen-
eral, a notification regarding such determination by 
the Director that includes— 
(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. 
(c) STATEMENT
REGARDING
ADDITIONAL
UN-
FUNDED REGULATORY COSTS.—In publishing a general 
notice of a final rule, the head of an agency shall include 
in such notice a statement that includes— 
(1) whether the rule will result in the amount 
of additional unfunded regulatory costs imposed by 
the agency during the fiscal year in which the rule 
is finalized to exceed a limit established under sub-
section (a)(1)(A), notwithstanding any requirement 
established by the Director pursuant to subsection 
(a)(1)(C); and 
(2) in the case that the rule will result in the 
amount of additional unfunded regulatory costs im-
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posed by the agency during the fiscal year in which 
the rule is finalized to exceed a limit established 
under subsection (a)(1)(A), notwithstanding any re-
quirement established by the Director pursuant to 
subsection (a)(1)(C)— 
(A) by how much the limit will be exceeded 
as a result of the rule; 
(B) a justification for exceeding such limit 
as a result of the rule; 
(C) an identification of any requirement 
established by the Director pursuant to sub-
section (a)(1)(C) to avoid exceeding such limit 
as a result of such rule; 
(D) whether the agency identified or con-
sidered any alternatives to the rule, or any re-
quirement established by the Director pursuant 
to subsection (a)(1)(C) that would have resulted 
in the imposition of a lesser amount of addi-
tional unfunded regulatory costs, and if so, how 
much less such amount would have been; 
(E) that the head of the agency submitted 
a notification to the Director under subsection 
(b)(2); and 
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(F) the determinations made by the Direc-
tor under subsection (b)(3) with respect to such 
rule. 
(d) JUDICIAL REVIEW.— 
(1) IN GENERAL.—A person that is aggrieved 
by agency action regarding a rule that is prohibited 
under the provisions of this section from being final-
ized or taking effect is entitled to judicial review of 
whether the agency complied with this section. 
(2) SCOPE OF REVIEW.—Chapter 7 of title 5, 
United States Code, shall govern the scope of judi-
cial review under paragraph (1). 
(3) JURISDICTION.—Each court that has juris-
diction to review a rule for compliance with section 
553 of title 5, United States Code, or under any 
other provision of law, shall have jurisdiction to re-
view a claim brought under paragraph (1). 
(4) RELIEF AVAILABLE.—In granting relief in 
an action under this section, a court shall order the 
agency that finalized or treated as in effect the rule 
that is under review to take remedial action con-
sistent with chapter 7 of title 5, United States Code. 
(e) ASSOCIATE ADMINISTRATOR FOR REGULATORY 
BUDGETING.— 
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(1) ESTABLISHMENT
OF
POSITION.—Section 
3503 of title 44, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(c) ASSOCIATE ADMINISTRATOR FOR REGULATORY 
BUDGETING.— 
‘‘(1) ESTABLISHMENT.—There is established an 
Associate Administrator for Regulatory Budgeting 
within the Office of Information and Regulatory Af-
fairs of the Office of Management and Budget, who 
is responsible for the oversight and coordination of 
the implementation of section 2 of the REG Budg-
eting Act of 2025. 
‘‘(2) APPOINTMENT AND PAY.—The position of 
Associate Administrator established under para-
graph (1) shall be appointed by the President, shall 
be a position in the excepted service, and shall be 
compensated at the rate of basic pay for level IV of 
the Executive Schedule (section 5315 of title 5).’’. 
(2) FIRST APPOINTMENT OF ASSOCIATE ADMIN-
ISTRATOR FOR REGULATORY BUDGETING.—Not later 
than 30 days after the date of the enactment of this 
section, the President shall appoint the first Asso-
ciate Administrator for Regulatory Budgeting estab-
lished under section 3503(c) of title 44, United 
States Code, as added by paragraph (1). 
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(3) GUIDELINES.—Not later than 90 days after 
the date of the enactment of this section, the Asso-
ciate Administrator for Regulatory Budgeting shall 
issue guidelines for agencies to ensure agencies meet 
the requirements of this section in a consistent man-
ner. 
(f) ANNUAL REPORT.—On or before October 30 of 
each fiscal year, the Director shall submit to the appro-
priate congressional committees a report on the adminis-
tration by the Director of the limits established under sub-
section (a)(1)(A) for the prior fiscal year, including— 
(1) whether the total amount of additional un-
funded regulatory costs imposed by all agencies in 
the prior fiscal year met or exceeded the limit estab-
lished under clause (i) of such subsection; 
(2) whether the total amount of additional un-
funded regulatory costs imposed by the head of each 
agency in the prior fiscal year met or exceeded the 
limit established for such costs under clause (ii) of 
such subsection; 
(3) a detailed statement that— 
(A) identifies by how much, and as a result 
of finalizing which rule or rules, any such limit 
was exceeded; and 
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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 notwith-
standing a limit established under subsection 
(a)(1)(A). 
(g) EXEMPTION FOR MONETARY POLICY.—This sec-
tion shall not apply to a rule that concerns monetary pol-
icy proposed or implemented by the Board of Governors 
of the Federal Reserve System or the Federal Open Mar-
ket Committee. 
(h) 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 any individual 
or entity as a result of a Federal mandate imposed 
by rule on an individual or entity during any pre-
ceding fiscal year. 
(2) AGENCY.—The term ‘‘agency’’ has the 
meaning given that term in section 551(1) of title 5, 
United States Code. 
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(3) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives; and 
(B) the Committee on Homeland Security 
and Governmental Affairs of the Senate. 
(4) COST.—The term ‘‘cost’’ means— 
(A) a direct cost; or 
(B) a quantifiable cost that can be esti-
mated using the methods and concepts de-
scribed in Office of Management and Budget 
Circular A–4 issued on September 17, 2003. 
(5) CUMULATIVE
UNFUNDED
REGULATORY 
COSTS.—The term ‘‘cumulative unfunded regulatory 
costs’’ means the aggregate amount of all unfunded 
regulatory costs imposed during all preceding fiscal 
years. 
(6) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Office of Management and Budg-
et. 
(7) RULE.—The term ‘‘rule’’ has the meaning 
given such term in section 551 of title 5, United 
States Code. 
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(8) UNFUNDED REGULATORY COST.—The term 
‘‘unfunded regulatory cost’’ means a cost required to 
be incurred by an individual or entity as a result of 
a Federal mandate imposed by rule on an individual 
or entity. 
Æ 
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