(A) by inserting ‘‘, and impacted parties 
within the private sector (including small busi-
nesses),’’ after ‘‘on their behalf)’’; and 
(B) by striking ‘‘Federal intergovernmental 
mandates’’ and inserting ‘‘Federal mandates’’; 
and 
(3) by amending subsection (c) to read as fol-
lows: 
‘‘(c) GUIDELINES.—For appropriate implementation 
of subsections (a) and (b) consistent with applicable laws 
and regulations, the following guidelines shall be followed: 
‘‘(1) Consultations shall take place as early as 
possible, before issuance of a notice of proposed rule-
making, continue through the final rule stage, and be 
integrated explicitly into the rulemaking process. 
‘‘(2) Agencies shall consult with a wide variety 
of State, local, and Tribal officials and impacted par-
ties within the private sector (including small busi-
nesses). Geographic, political, and other factors that 
may differentiate varying points of view should be 
considered. 
‘‘(3) Agencies should estimate benefits and costs 
to assist with these consultations. The scope of the 
consultation should reflect the cost and significance of 
the Federal mandate being considered. 
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‘‘(4) Agencies shall, to the extent practicable— 
‘‘(A) seek out the views of State, local, and 
Tribal governments, and impacted parties with-
in the private sector (including small busi-
nesses), on costs, benefits, and risks; and 
‘‘(B) solicit ideas about alternative methods 
of compliance and potential flexibilities, and 
input on whether the Federal regulation will 
harmonize with and not duplicate similar laws 
in other levels of government. 
‘‘(5) Consultations shall address the cumulative 
impact of regulations on the affected entities. 
‘‘(6) Agencies may accept electronic submissions 
of comments by relevant parties but may not use 
those comments as the sole method of satisfying the 
guidelines in this subsection.’’. 
SEC. 4. MAXIMIZE NET BENEFITS OR PROVIDE EXPLA-
NATION. 
Title II of the Unfunded Mandates Reform Act of 1995 
(2 U.S.C. 1531 et seq.) is amended by striking section 205 
(2 U.S.C. 1535) and inserting the following: 
‘‘SEC. 205. MAXIMIZE NET BENEFITS. 
‘‘(a) DEFINITION OF COST.—In this section, the term 
‘cost’ has the meaning given the term in section 202(a). 
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‘‘(b) REQUIREMENT.—Before promulgating any pro-
posed or final major rule for which a regulatory impact 
analysis is required under section 202, an agency shall from 
the alternatives identified and considered under section 
202(c)(1)(B), select the alternative that maximizes net bene-
fits, taking into consideration only the costs and benefits 
that arise within the scope of the statutory provision that 
authorizes the rulemaking. 
‘‘(c) EXCEPTIONS.—An agency may adopt an alter-
native other than as required under subsection (b) only if— 
‘‘(1) the Administrator of the Office of Informa-
tion and Regulatory Affairs approves the adoption by 
the agency of the alternative; and 
‘‘(2) the alternative is adopted to— 
‘‘(A) account for costs or benefits that can-
not be quantified, including costs or benefits re-
lated to constitutional or civil rights, provided 
that the agency identifies all such costs and bene-
fits and explains why those costs and benefits 
justify the adoption of the alternative; or 
‘‘(B) achieve additional benefits or cost re-
ductions, provided that the agency— 
‘‘(i) identifies— 
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‘‘(I) all such additional benefits 
and the associated costs of those bene-
fits; and 
‘‘(II) all such cost reductions and 
the associated benefits of those cost re-
ductions; and 
‘‘(ii) explains why— 
‘‘(I) the additional benefits justify 
the additional costs; or 
‘‘(II) the additional cost reduc-
tions justify any benefits foregone.’’. 
SEC. 5. NEW AUTHORITIES AND RESPONSIBILITIES FOR OF-
FICE OF INFORMATION AND REGULATORY AF-
FAIRS. 
Section 208 of the Unfunded Mandates Reform Act of 
1995 (2 U.S.C. 1538) is amended to read as follows: 
‘‘SEC. 208. OFFICE OF INFORMATION AND REGULATORY AF-
FAIRS RESPONSIBILITIES. 
‘‘(a) IN GENERAL.—The Administrator of the Office 
of Information and Regulatory Affairs (in this section re-
ferred to as the ‘Administrator’) shall provide meaningful 
guidance and oversight so that the major rules of an agency 
for which a regulatory impact analysis is required under 
section 202— 
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‘‘(1) are consistent with the principles and re-
quirements of this title, as well as other applicable 
laws; and 
‘‘(2) and do not conflict with the policies or ac-
tions of another agency. 
‘‘(b) NOTIFICATION.—If the Administrator determines 
that the major rules of an agency for which a regulatory 
impact analysis is required under section 202 do not com-
ply with the principles and requirements of this title, are 
not consistent with other applicable laws, or conflict with 
the policies or actions of another agency, the Administrator 
shall— 
‘‘(1) identify areas of noncompliance; 
‘‘(2) notify the agency; and 
‘‘(3) request that the agency comply before the 
agency finalizes the major rule concerned. 
‘‘(c) ANNUAL STATEMENTS TO CONGRESS ON AGENCY 
COMPLIANCE.—The Administrator shall submit to Con-
gress, including the Committee on Homeland Security and 
Governmental Affairs of the Senate and the Committee on 
Oversight and Government Reform of the House of Rep-
resentatives, an annual written report that, for the 1-year 
period preceding the report— 
‘‘(1) details compliance by each agency with the 
requirements of this title that relate to major rules for 
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which a regulatory impact analysis is required by 
section 202, including activities undertaken at the re-
quest of the Administrator to improve compliance; 
and 
‘‘(2) contains an appendix detailing compliance 
by each agency with section 204.’’. 
SEC. 6. INITIATION OF RULEMAKING. 
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1501 et seq.) is amended— 
(1) by redesignating section 209 (2 U.S.C. 1531 
note) as section 210; and 
(2) by inserting after section 208 (2 U.S.C. 
1548) the following: 
‘‘SEC. 209. INITIATION OF RULEMAKING FOR MAJOR RULES. 
‘‘When an agency determines to initiate a rulemaking 
that may result in a major rule, the agency shall— 
‘‘(1) establish an electronic docket for that rule-
making, which may have a physical counterpart; and 
‘‘(2) publish a notice of initiation of rulemaking 
in the Federal Register, which shall— 
‘‘(A) briefly describe the subject and objec-
tives of, and the problem to be solved by, the 
major rule; 
‘‘(B) refer to the legal authority under 
which the major rule would be proposed, includ-
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ing the specific statutory provision that author-
izes the rulemaking; 
‘‘(C) invite interested persons to propose al-
ternatives and other ideas regarding how best to 
accomplish the objectives of the agency in the 
most effective manner; 
‘‘(D) indicate how interested persons may 
submit written material for the docket; and 
‘‘(E) appear in the Federal Register not 
later than 90 days before the date on which the 
agency publishes a notice of proposed rulemaking 
for the major rule.’’. 
SEC. 7. INCLUSION OF APPLICATION TO INDEPENDENT 
REGULATORY AGENCIES. 
(a) IN GENERAL.—Section 421(1) of the Congressional 
Budget Act of 1974 (2 U.S.C. 658(1)) is amended by strik-
ing ‘‘, but does not include independent regulatory agen-
cies’’. 
(b) EXEMPTION FOR MONETARY POLICY.—The Un-
funded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.) 
is amended by inserting after section 5 the following: 
‘‘SEC. 6. EXEMPTION FOR MONETARY POLICY. 
‘‘Nothing in title II, III, or IV shall apply to rules 
that concern monetary policy proposed or implemented by 
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the Board of Governors of the Federal Reserve System or 
the Federal Open Market Committee.’’. 
SEC. 8. JUDICIAL REVIEW. 
Title IV of the Unfunded Mandates Reform Act of 1995 
is amended by striking section 401 (2 U.S.C. 1571) and 
inserting the following: 
‘‘SEC. 401. JUDICIAL REVIEW. 
‘‘(a) IN GENERAL.—A person that is aggrieved by 
final agency action in adopting a major rule that is subject 
to section 202 is entitled to judicial review of whether the 
agency complied with section 202(b), 202(c)(1), or 205 with 
respect to the rule. 
‘‘(b) SCOPE OF REVIEW.—Chapter 7 of title 5, United 
States Code, shall govern the scope of judicial review under 
subsection (a). 
‘‘(c) JURISDICTION.—Each court that has jurisdiction 
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 review a claim brought under sub-
section (a). 
‘‘(d) RELIEF AVAILABLE.—In granting relief in an ac-
tion under this section, a court shall order the agency that 
promulgated the major rule that is under review to take 
remedial action consistent with chapter 7 of title 5, United 
States Code.’’. 
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SEC. 9. APPLYING SUBSTANTIVE POINT OF ORDER TO PRI-
VATE SECTOR MANDATES. 
Section 425(a)(2) of the Congressional Budget Act of 
1974 (2 U.S.C. 658d(a)(2)) is amended— 
(1) by striking ‘‘Federal intergovernmental man-
dates’’ and inserting ‘‘Federal mandates’’; and 
(2) by striking ‘‘section 424(a)(1)’’ and inserting 
‘‘subsection (a)(1) or (b)(1) of section 424’’. 
SEC. 10. EFFECTIVE DATE. 
Sections 3, 4, 5, and 7 of this Act and the amendments 
made by those sections shall take effect on the date that is 
120 days after the date of enactment of this Act. 
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Union Calendar No. 381 
119TH CONGRESS 
2D SESSION 
H. R. 580 
[Report No. 119–446, Part I] 
A BILL 
To amend the Unfunded Mandates Reform Act of 
1995 to provide for regulatory impact analyses 
for certain rules, and for other purposes. 
JANUARY 13, 2026 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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