H.R.1963 - Agency Accountability and Cost Transparency Act of 2025 (119th Congress)
Summary
H.R. 1963, the Agency Accountability and Cost Transparency Act of 2025, aims to increase agency accountability by requiring agencies to identify and offset the costs of major rules. Before issuing a major rule, agencies must estimate its cost, identify existing rules that can be repealed to offset the new rule's cost, and then repeal those rules. The bill defines 'budget neutral' as the cost of the new rule being equal to the cost savings from repealed rules.
Expected Effects
The primary effect of this bill would be to constrain agency rulemaking by imposing a 'budget neutral' requirement. This could lead to fewer new regulations, as agencies would need to find offsetting cost reductions by repealing existing rules. It could also incentivize agencies to carefully consider the costs and benefits of new regulations.
Potential Benefits
- Increased Transparency: The requirement for agencies to identify the costs of rules and whether they are budget neutral enhances transparency.
- Reduced Regulatory Burden: By requiring agencies to offset the costs of new rules, the bill could lead to a reduction in the overall regulatory burden on businesses and individuals.
- Improved Cost-Benefit Analysis: The bill incentivizes agencies to conduct more thorough cost-benefit analyses of proposed rules.
- Greater Accountability: Agency heads are made more accountable for the economic impact of their regulations.
- Potential for Innovation: Agencies may seek innovative solutions to achieve regulatory goals at a lower cost.
Potential Disadvantages
- Reduced Agency Flexibility: The budget neutrality requirement could limit agencies' ability to address emerging problems or implement new policies.
- Potential for Gaming the System: Agencies might repeal less important rules to offset the costs of new, more impactful rules, without actually reducing the overall regulatory burden.
- Increased Administrative Burden: The process of estimating costs, identifying offsetting rules, and repealing rules could create additional administrative burdens for agencies.
- Difficulty in Quantifying Costs and Benefits: Accurately quantifying the costs and benefits of regulations can be challenging, potentially leading to flawed decisions.
- Potential for Political Manipulation: The selection of rules to be repealed could be influenced by political considerations rather than objective cost-benefit analysis.
Constitutional Alignment
The bill's focus on regulatory cost and transparency aligns with the general principles of limited government and accountability. Article I, Section 1 vests legislative powers in Congress, and this bill seeks to exert congressional oversight over agency rulemaking, which is a delegated legislative power. The bill does not appear to infringe on any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).