Unfunded Mandates Accountability and Transparency Act of 2025
Unfunded Mandates Accountability and Transparency Act of 2025 would overhaul how major federal rules are analyzed and governed under the Unfunded Mandates Reform Act of 1995. The bill requires comprehensive regulatory impact analyses (costs and benefits) for major rules, expands and formalizes stakeholder engagement—including private sector and small businesses—and obligates agencies to select rule alternatives that maximize net benefits. It then tightens oversight by the Office of Information and Regulatory Affairs (OIRA), creates new rulemaking initiation and transparency requirements, extends these requirements to independent regulatory agencies (with a monetary policy exemption for the Federal Reserve), and provides a new avenue for judicial review of compliance. Several provisions would take effect 120 days after enactment. Overall, the bill aims to increase transparency, accountability, and economic analysis in the federal rulemaking process, particularly for rules with significant economic impact.
Key Points
- 1Major rule definition and explicit regulatory impact analyses: Establishes a CPI-adjusted threshold (initially $100 million annual economy effect) to define “major rule,” and requires initial and final regulatory impact analyses detailing benefits, costs, feasible alternatives, distributional impacts, and compliance costs.
- 2Expanded stakeholder consultation, including private sector: Requires early and ongoing consultation with state/local/tribal governments and private-sector interests (including small businesses), with guidelines to estimate costs/benefits and consider cumulative impacts and flexibilities.
- 3Net benefits requirement and exceptions: Agencies must select the rule alternative that maximizes net benefits (within the statute’s scope) before finalizing a major rule; exceptions require OIRA approval and must justify any non-quantified costs/benefits or additional benefits/cost reductions.
- 4Enhanced OIRA oversight and reporting: The Administrator must guide and oversee major rules, notify agencies of noncompliance, and Congress would receive annual compliance reports detailing agency performance and an appendix on 204 consultative activities.
- 5Initiation of rulemaking and transparency: Creates a formal initiation process for major rules, including an electronic docket and a 90-day Federal Register timeline before proposing rulemaking; requires publication of initiation notices describing objectives, authority, and invites alternatives.