RED TAPE Act

Full Title:
RED TAPE Act

Summary#

This measure would change how federal agencies do economic reviews of rules. It bans agencies from using any non-monetized or unquantified factor when doing a regulatory impact analysis or a benefit-cost analysis for a proposed, final, or interim final rule. The Office of Management and Budget (OMB) would also be barred from authorizing or considering non-monetized or unquantified factors in those analyses. Agencies must publish in the Federal Register a summary and the full text of each regulatory impact analysis and benefit-cost analysis, including methods and rationale. The bill adds definitions that reference Executive Orders 12866, 13563, and 14094 and OMB Circulars A-4 and A-94. OMB must issue revised guidance within 90 days of enactment. Anyone affected by a rule that relied on non-monetized or unquantified factors may sue in district court; if the court finds such reliance, the court must declare the rule invalid. The provision applies to rules issued on or after November 9, 2023. The statute's amendments take effect 30 days after enactment.

What it means for you#

  • Agencies could only count monetary or quantified effects when they prepare official economic analyses of rules.
  • Agencies must post their full analyses, methods, and explanations with each rule in the Federal Register.
  • OMB must update its guidance to reflect the ban within 90 days of enactment.
  • A person or group affected by a rule can sue if the agency used non-monetized or unquantified factors. If a court agrees, the rule would be invalidated.
  • The rules covered include those issued on or after November 9, 2023, and the law’s changes take effect 30 days after the law is enacted.

Expenses#

No publicly available information.

Proponents' View#

The bill’s findings state that agencies should prioritize tangible, immediately quantifiable monetary benefits in decision making. The text frames the change as a way to ensure regulatory actions yield clear and measurable financial benefits and to minimize unnecessary regulatory costs or burdens.

Opponents' View#

No publicly available information.