I 
118TH CONGRESS 
2D SESSION 
H. R. 7867 
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 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Renewing Efficiency 
in Government by Budgeting Act’’ or the ‘‘REG Budg-
eting Act’’. 
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 Sep-
tember 30 of each fiscal year, the Director shall 
establish— 
‘‘(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 
additional unfunded regulatory costs that 
may be imposed individually by the head of 
each agency in the next fiscal year. 
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‘‘(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 
Director may not establish a limit under sub-
paragraph (A) that allows the head of an agen-
cy 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 es-
tablishing such limit, to the appropriate 
congressional committees; and 
‘‘(ii) publish the report on the website 
designated under subparagraph (D). 
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‘‘(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 es-
tablishing such limit, to— 
‘‘(I) the appropriate congres-
sional 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 
CERTAIN RULES UNTIL SUBMISSION OF REPORT 
TO
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.— 
‘‘(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-
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ignate a website through which the Director will 
publish reports in accordance with subpara-
graphs (A) and (B). 
‘‘(b) RULES RESULTING IN LIMIT BEING EXCEED-
ED.— 
‘‘(1) CONGRESSIONAL APPROVAL.—If the pro-
mulgation 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 
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), the head of the agen-
cy— 
‘‘(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 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— 
‘‘(A) determine whether finalizing such 
rule during that fiscal year will result in a limit 
established 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 
notwithstanding 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 exceeded, not later than 7 days after the Di-
rector submits a notification to the head of an agen-
cy under paragraph (3)(C) with respect to such de-
termination, the Director shall submit to the appro-
priate congressional committees, each standing com-
mittee 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 General, a 
notification regarding such determination by the Di-
rector 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. 
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‘‘(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); and 
‘‘(2) in the case that the rule will result in the 
amount of additional unfunded regulatory costs im-
posed by the agency during the fiscal year in which 
the rule is finalized to exceed a limit established 
under subsection (a)(1)(A)— 
‘‘(A) by how much the limit will be exceed-
ed as a result of the rule; 
‘‘(B) a justification for exceeding such 
limit as a result of the rule; 
‘‘(C) whether the agency identified or con-
sidered any alternatives to the rule that would 
have imposed a lesser amount of additional un-
funded regulatory costs, and if so, how much 
less such amount would have been; 
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‘‘(D) that the head of the agency sub-
mitted a notification to the Director under sub-
section (b)(2); and 
‘‘(E) the determinations made by the Di-
rector under subsection (b)(3) with respect to 
such rule. 
‘‘(d) 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 re-
sult of finalizing which rule or rules, any such 
limit was exceeded; and 
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