Plain Language Summary
# RED TAPE Act Summary **What It Would Do:** The RED TAPE Act would restrict how federal agencies evaluate new rules and regulations. Specifically, it would require agencies to only consider factors they can assign a dollar value to when analyzing whether a rule is beneficial or harmful. This means agencies couldn't factor in things like environmental quality, public health benefits that are hard to quantify, or other non-monetary impacts when deciding whether to create new rules. The bill also requires agencies to publicly share all their cost-benefit analyses and prevents the Office of Management and Budget from approving any analysis that includes unmeasured factors. **Who It Affects:** This bill would impact federal agencies across government, as well as businesses and the public.
It could affect the regulatory process for everything from environmental protection to workplace safety to consumer protections. Supporters argue it would reduce unnecessary regulations and their costs on businesses. Critics contend it could limit agencies' ability to protect health, safety, and environmental values that are difficult to measure in dollars. **Current Status:** The bill was introduced in the 119th Congress by Senator Joni Ernst (R-IA) and is currently in committee, meaning it hasn't advanced to a full Senate vote yet.
CRS Official Summary
Regulations Evaluated to Determine The Anticipated Price and Effect Act or the RED TAPE ActThis bill prohibits federal agencies from considering any nonmonetized or unquantified factor when conducting a regulatory impact analysis or benefit-cost analysis for any proposed rule, final rule, or interim final rule.Each agency must publish each regulatory impact analysis and benefit-cost analysis conducted by the agency with respect to a proposed rule, final rule, or interim final rule.Additionally, the Office of Management and Budget may not (1) authorize or endorse an agency's use of any nonmonetized or unquantified factor when conducting a regulatory impact analysis or benefit-cost analysis on any proposed rule, final rule, or interim final rule; or (2) consider any nonmonetized or unquantified factor presented in a regulatory impact analysis or benefit-cost analysis of another agency.The bill provides for judicial review of a rule issued by an agency that considered a nonmonetized or unquantified factor when conducting a regulatory impact or benefit-cost analysis. If a court finds that an agency relied upon such a factor to evaluate a final rule or interim final rule, the court must declare the rule invalid.The bill takes effect 30 days after enactment.
Latest Action
Committee on Small Business and Entrepreneurship. Hearings held.