RED TAPE Act
- Bill Number
- H.R. 572
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-01-21: Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-06-11T23:26:42Z
AI-Generated Summary
Purpose of the Legislation
The "Regulations Evaluated to Determine The Anticipated Price and Effect Act" (RED TAPE Act) aims to ensure that federal agencies prioritize measurable financial benefits when analyzing proposed regulations. It seeks to limit regulatory decision-making to quantifiable economic factors, reducing the influence of subjective or hard-to-measure considerations, to minimize unnecessary costs and burdens on the public and private sectors.
Key Provisions
- Definitions Added: The bill amends the Regulatory Flexibility Act (Chapter 6 of Title 5, U.S. Code) to define "benefit-cost analysis" (a method to compare the economic benefits and costs of a regulation, as outlined in Office of Management and Budget (OMB) guidelines) and "regulatory impact analysis" (an evaluation of a rule's effects under various executive orders and OMB circulars).
- Prohibition on Non-Monetized Factors:
- Federal agencies are barred from using non-monetized (non-financial) or unquantified (not numerically measurable) factors in benefit-cost or regulatory impact analyses for proposed, final, or interim final rules.
- The OMB cannot approve, guide, or consider such factors in agency analyses.
- Transparency Requirements: Agencies must publish in the Federal Register (the official journal for federal regulations) summaries, full texts, methodologies, and rationales for all regulatory impact and benefit-cost analyses, including decision-making details.
- OMB Guidance: Within 90 days of enactment, the OMB Director must issue updated instructions to agencies to comply with these rules.
- Judicial Review:
- Affected parties can sue an agency in U.S. district court if a rule violates the prohibition.
- Courts must invalidate (declare invalid) any final or interim final rule found to rely on prohibited factors.
- This review applies to rules issued on or after November 9, 2023.
- Effective Date: Changes take effect 30 days after the bill becomes law.
Significant Changes to Existing Law
- New Restrictions on Analyses: Previously, agencies could incorporate qualitative factors (e.g., social or environmental benefits not easily assigned a dollar value) under executive orders like 12866, 13563, and 14094, and OMB Circulars A-4 and A-94. This bill adds a strict ban on such factors, mandating only monetized, quantifiable data.
- Enhanced Accountability: Introduces a new section (613) to the U.S. Code, requiring public disclosure of analysis details and creating a direct pathway for court challenges, which was not explicitly available before for these specific violations.
- Technical Updates: Expands definitions in the Regulatory Flexibility Act and updates the table of contents for consistency.
Potential Impacts
- On Government Agencies: Agencies like the Environmental Protection Agency or Department of Labor may face challenges in justifying rules addressing non-economic issues (e.g., public health or equity), potentially slowing rulemaking and increasing reliance on economic data. This could reduce regulatory output but streamline processes focused on costs.
- On Citizens and Businesses: Could lower compliance costs for individuals and companies by curbing overly broad regulations, but might weaken protections in areas like safety or the environment where benefits are hard to quantify financially. Small businesses, referenced in the bill's committee referral, may benefit from reduced burdens.
- On International Relations: No direct impacts mentioned; the bill focuses on domestic regulatory processes without addressing foreign policy or trade.
Main Stakeholders Affected
- Federal Agencies: Primary implementers, required to revise analysis methods and face potential lawsuits.
- Office of Management and Budget (OMB): Oversees compliance and must update guidance, limiting its flexibility in reviewing rules.
- Businesses and Industry Groups: Likely supporters, as the bill reduces regulatory hurdles and emphasizes cost minimization.
- Public and Advocacy Groups: Citizens, environmental organizations, or consumer advocates may oppose it if it limits rules protecting non-economic interests.
- Judiciary: Gains expanded role in reviewing and potentially invalidating regulations.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens challenges to regulations by allowing courts to strike down rules based on analysis flaws, potentially increasing litigation and altering how agencies defend their actions. The retroactive application to rules since November 2023 could reopen past decisions.
- Constitutional Implications: May raise questions about congressional limits on executive branch authority (under Article II), as it constrains how agencies exercise delegated rulemaking powers without violating separation of powers.
- Political Implications: Aligns with efforts to deregulate and prioritize economic efficiency, reflecting a congressional push to curb perceived overreach in agency analyses, but could spark debates over balancing quantifiable costs against broader societal benefits.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Hageman, Harriet M. [R-WY-At Large]
Recent Actions
- 2025-01-21: Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-01-21: Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-01-21: Introduced in House
- 2025-01-21: Introduced in House
Bill Versions
- Regulations Evaluated to Determine The Anticipated Price and Effect Act — issued 2025-01-21 — PDF (6 pages)