REG Budgeting Act of 2025
The REG Budgeting Act of 2025 would require the Director of the Office of Management and Budget (OMB) to set an annual cap on the amount of additional unfunded regulatory costs that federal agencies can impose in the next fiscal year, and to specify both a total (across all agencies) and per-agency limits. Agencies would submit proposed limits with justifications, and the Director could require reductions or offsets. If a proposed rule would push the limit over the cap, Congress must approve the rule by joint resolution; until such approval, a default limit would prevent net increases in unfunded regulatory costs. The bill also creates an Associate Administrator for Regulatory Budgeting within OMB, mandates regular reporting to Congress and the public, and establishes broad oversight and review processes for rules that would exceed the cap. An exemption applies to monetary policy rules. In short, the bill turns regulatory costs into a budgetary constraint with formal review, reporting, and potential congressional veto over new unfunded regulatory costs.
Key Points
- 1Establishes an annual regulatory budget (limits on additional unfunded regulatory costs), with a total cap and per-agency caps to be set by the Director of OMB each fiscal year.
- 2Requires agencies to propose agency-specific limits and provide detailed cost justifications; allows the Director to require cost offsets or reductions.
- 3Rules that would exceed the cap cannot take effect unless Congress approves them by joint resolution; if Congress does not approve, the default is no net increase in unfunded costs for that fiscal year.
- 4Mandates timely reporting and public disclosure: the Director must publish agency-wide and agency-specific limit reports, and agencies must notify the Director if a rule would exceed the limit, with a Director determination process and potential congressional notification.
- 5Creates an Associate Administrator for Regulatory Budgeting within OMB to oversee implementation, issue guidelines, and coordinate agency compliance.
- 6Requires an annual report to Congress (by Oct 30) detailing compliance with limits, any exceedances, and proposed actions; includes a public-facing website for reports.
- 7Exempts monetary policy rules from these provisions.
- 8Provides a process for judicial review if a rule is prohibited from finalizing or taking effect under these provisions.
- 9Defines key terms (e.g., additional unfunded regulatory cost, agency, costs, rule) and sets the framework for how costs are measured.