Regulation Reduction Act of 2025
The Regulation Reduction Act of 2025 would change how new federal rules are written by requiring agencies to repeal existing regulations before issuing any new one. For non-major rules, an agency must repeal at least three existing rules related to the new rule. For major rules, the agency must repeal at least three related rules and ensure the new major rule’s total cost is no greater than the cost of the repealed rules, with a formal cost certification by the Office of Management and Budget (OMB). The bill also requires publication of repealed rules, a post-enactment agency rule review, and a broad set of definitions to guide implementation. Overall, the measure is meant to reduce regulatory burden by forcing net reductions in regulation before new rules can take effect, but it could slow or constrain regulatory updates, especially for rules with substantial impacts on businesses, states, or local governments.
Key Points
- 1Before issuing any new rule, an agency may must repeal three or more existing rules that are, to the extent practicable, related to the new rule.
- 2For major rules, the repeal requirement applies as above and the new major rule’s cost must be less than or equal to the cost of the repealed rules; the cost must be certified by the OMB.
- 3Repealed rules must be published in the Federal Register.
- 4The act excludes internal agency policy or procurement rules, and excludes revisions that are intended to reduce burdens or lessen requirements.
- 5Within 90 days of enactment, agency heads must submit a report to Congress and the OMB reviewing all agency rules for cost, effectiveness, duplications, and outdated restrictions.