Unfunded Mandates Accountability and Transparency Act of 2025
- Bill Number
- H.R. 580
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-01-13: Placed on the Union Calendar, Calendar No. 381.
- Last Updated
- 2026-06-11T05:06:24Z
AI-Generated Summary
Purpose of the Legislation
The Unfunded Mandates Accountability and Transparency Act of 2025 aims to update the Unfunded Mandates Reform Act of 1995 (UMRA) by strengthening requirements for federal agencies to analyze the impacts of major regulations. It seeks to promote transparency, accountability, and cost-effective rulemaking by mandating detailed assessments of economic effects, broader stakeholder input, and selection of options that maximize overall benefits while minimizing burdens.
Key Provisions
- Definition of Major Rules: Expands the term "major rule" to include regulations likely to have an annual economic impact of $100 million or more (adjusted for inflation every five years), significant cost increases for consumers or governments, or adverse effects on competition, jobs, innovation, or U.S. businesses competing globally.
- Regulatory Impact Analyses (RIAs): Agencies must prepare and publish initial RIAs with proposed rules (open for public comment) and final RIAs with adopted rules. These analyses must:
- Quantify benefits and costs where possible, including compliance costs and indirect effects like lost revenue.
- Evaluate alternatives, such as market-based incentives, information disclosure, or flexible options.
- Assess funding availability for state, local, and Tribal governments; disproportionate effects on regions, communities, or industries; job impacts; and prior consultations with affected governments.
- Enhanced Stakeholder Consultations: Agencies must consult early and ongoing with state, local, Tribal officials, and private sector parties (including small businesses) on costs, benefits, alternatives, and harmonization with other laws. Consultations should address cumulative regulatory burdens and allow electronic input, but not rely solely on it.
- Maximizing Net Benefits: For major rules, agencies must choose the alternative that maximizes net benefits (benefits minus costs) within the law's scope. Exceptions require approval from the Office of Information and Regulatory Affairs (OIRA) and justification for unquantifiable factors (e.g., civil rights) or additional gains.
- OIRA Oversight and Reporting: OIRA must guide agencies to ensure compliance, notify non-compliant agencies, and submit annual reports to Congress on agency adherence, including consultation details.
- Rulemaking Initiation: For potential major rules, agencies must create an electronic docket and publish a Federal Register notice at least 90 days before proposing the rule, describing objectives, legal authority, and inviting public ideas.
- Application to Independent Agencies: Extends requirements to independent regulatory agencies (e.g., FCC, SEC), but exempts Federal Reserve monetary policy rules.
- Judicial Review: Allows courts to review agency compliance with RIA requirements, benefits-costs analysis, and net benefits selection under standard administrative law procedures (Chapter 7 of Title 5, U.S. Code). Courts can order remedial actions like rule revisions.
- Congressional Points of Order: Expands budget enforcement to challenge bills imposing unfunded mandates on the private sector, similar to existing intergovernmental protections.
Significant Changes to Existing Law
- Broadens Scope of UMRA: Shifts focus from primarily intergovernmental mandates to include private sector impacts, applying analyses and consultations more widely.
- Strengthens RIA Requirements: Replaces simpler statements with comprehensive initial and final analyses, including quantified job effects and alternatives emphasizing flexibility.
- Introduces Net Benefits Mandate: Adds a new requirement (replacing a prior section) to prioritize cost-benefit optimization, with OIRA approval for deviations—unlike the original UMRA, which had no such explicit maximization rule.
- Expands OIRA Role: Enhances OIRA's enforcement powers, including pre-finalization notifications and detailed annual congressional reports on compliance.
- Adds Judicial Enforceability: For the first time, allows direct court challenges to RIA compliance for major rules, previously limited; also extends points of order in Congress to private sector mandates.
- Minor Technical Updates: Capitalizes "Tribal" consistently and clarifies exemptions.
Potential Impacts
- On Government Agencies: Increases workload for federal agencies (including independents) through mandatory analyses, consultations, and OIRA reviews, potentially delaying rulemaking by months but leading to better-justified regulations and fewer legal challenges.
- On Citizens and Businesses: Private sector entities, especially small businesses, gain more input opportunities and protections against overly burdensome rules; citizens may benefit from regulations that consider job losses, innovation, and competitive effects, though some rules could face delays.
- On State, Local, and Tribal Governments: Enhances their voice in federal rulemaking, with assessments of funding availability and disproportionate burdens, potentially reducing unfunded costs but requiring more participation in consultations.
- On International Relations: Minimal direct impact, but provisions addressing effects on U.S. enterprises' global competitiveness could indirectly support trade and economic policies by discouraging rules that harm exports or domestic innovation.
Main Stakeholders Affected
- Federal Agencies: Bear primary compliance burdens, including rulemaking delays and OIRA oversight.
- State, Local, and Tribal Governments: Gain expanded consultation rights and protections against unfunded mandates.
- Private Sector (Businesses and Small Businesses): Newly included in consultations; benefit from impact analyses on costs, jobs, and competition.
- Congress: Receives annual OIRA reports and can enforce via points of order during bill debates.
- OIRA/Office of Management and Budget: Assumes greater oversight and reporting responsibilities.
- Courts and Litigants: Handle new judicial reviews of major rules, potentially increasing caseloads for affected parties (e.g., businesses challenging regulations).
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Introduces enforceable judicial review for RIA compliance, enabling "aggrieved" parties (e.g., businesses or governments) to seek rule revisions under arbitrary-and-capricious standards; this could lead to more litigation, similar to challenges under the Administrative Procedure Act, but focused on analytical rigor.
- Constitutional Implications: Reinforces federalism principles by mandating consultations with state and local entities (per the 10th Amendment's reservation of powers), ensuring federal rules consider subnational impacts without overriding them; also promotes due process through public input and transparent analyses.
- Political Implications: Enhances congressional and executive oversight of regulations, potentially shifting power dynamics by curbing agency discretion and allowing OIRA (under the President) to influence rule selection; may foster bipartisan support for reducing regulatory burdens but invite debates over enforcement stringency or exemptions. The 120-day delayed effective date for key sections allows preparation time.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Rep. Cuellar, Henry [D-TX-28], Rep. Golden, Jared F. [D-ME-2], Rep. Hinson, Ashley [R-IA-2], Rep. Sessions, Pete [R-TX-17]
Recent Actions
- 2026-01-13: Placed on the Union Calendar, Calendar No. 381.
- 2026-01-13: Committee on the Judiciary discharged.
- 2026-01-13: Committee on the Judiciary discharged.
- 2026-01-13: Committee on the Budget discharged.
- 2026-01-13: Committee on the Budget discharged.
- 2026-01-13: Committee on Rules discharged.
- 2026-01-13: Committee on Rules discharged.
- 2026-01-13: Reported (Amended) by the Committee on Oversight and Government Reform. H. Rept. 119-446, Part I.
- 2026-01-13: Reported (Amended) by the Committee on Oversight and Government Reform. H. Rept. 119-446, Part I.
- 2025-05-21: Ordered to be Reported by the Yeas and Nays: 23 - 19.
- 2025-05-21: Committee Consideration and Mark-up Session Held
- 2025-01-21: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Rules, the Budget, and the Judiciary, 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 Oversight and Government Reform, and in addition to the Committees on Rules, the Budget, and the Judiciary, 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 Oversight and Government Reform, and in addition to the Committees on Rules, the Budget, and the Judiciary, 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 Oversight and Government Reform, and in addition to the Committees on Rules, the Budget, and the Judiciary, 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.
Bill Versions
- Unfunded Mandates Accountability and Transparency Act of 2025 — issued 2025-01-21 — PDF (16 pages)
- Unfunded Mandates Accountability and Transparency Act of 2025 — issued 2026-01-13 — PDF (18 pages)