Sunset Chevron Act: Automatic Expiration Dates Set for Agency Rules Upheld Under 'Chevron Deference'

The Sunset Chevron Act is a new bill that aims to automatically phase out federal regulations that were previously upheld in court based on Chevron deference. This legal principle allows courts to defer to a federal agency's interpretation of an ambiguous law. This bill sets up a system where these 'Chevron-backed' rules will automatically expire unless Congress specifically acts to save them.

Regulatory Time-Out

The core of the bill mandates the Government Accountability Office (GAO) to compile a list of all agency rules currently in effect that were upheld in court using Chevron deference (SEC. 3). Within 180 days of this Act becoming law, the GAO must publish this list, and it comes with a ticking clock: each rule gets a 'sunset date'—a date when it automatically expires. The most recently upheld rule on the list will expire 30 days after the list is published. Each older rule from the same agency then expires in 30-day intervals, creating a cascading effect of regulatory expirations.

Real-World Rollout

Imagine a construction company that's been following an EPA rule about wastewater discharge, a rule previously affirmed in court under Chevron deference. Under this Act, that rule could vanish on its assigned sunset date. The company, which had been compliant, might suddenly find itself operating outside of seemingly non-existent regulations. Or consider a small healthcare provider relying on a specific interpretation of Medicare billing rules, also upheld under Chevron. That interpretation—and the provider's billing practices—could be upended when the rule expires. This creates a lot of uncertainty, and not just in one industry. This impacts every sector. This bill is designed to automatically sunset all the rules that have been upheld by Chevron Deference, so if you think something is regulated, you better check the GAO's list, or it might not be for long!

Fast-Track to Expiration

Section 4 of the bill also speeds up the process for Congress to review—and potentially overturn—these rules. It waives the usual 60-day review period under the Congressional Review Act (CRA) for any rule identified in the GAO's list. This means Congress can move quickly to essentially kill off these regulations, potentially with less debate and scrutiny than usual. It is not hard to imagine how drastically this could change how businesses, trade workers, and consumers have to operate if rules are pulled out from under them with minimal notice.

The Big Picture: Uncertainty and Instability

While proponents may argue this increases government accountability, the practical effect could be widespread regulatory instability. Businesses, state governments, and even individuals rely on established rules for planning and compliance. Automatically expiring rules, especially on a rolling 30-day basis, creates a climate of uncertainty. It's like pulling the rug out from under everyone who's trying to follow the law as it stands. The expedited CRA process raises concerns that important regulations could be overturned rapidly, driven by political pressure rather than careful consideration of their impact on the ground. The bill doesn't offer a plan to handle the chaos it might create, leaving folks to wonder if their daily operations will suddenly become non-compliant without warning.