The "Regulation Reduction Act of 2025" mandates that federal agencies repeal at least three existing regulations for every new one issued, ensuring that the cost of any new major regulation is offset by the cost savings from those repealed, aiming to reduce regulatory burden and costs.
Stephanie Bice
Representative
OK-5
The "Regulation Reduction Act of 2025" mandates that federal agencies repeal at least three existing regulations for every new regulation issued, ensuring that the cost of any new major regulation is offset by the cost savings from those repealed. Agency heads must also submit reports identifying costly, ineffective, or outdated regulations to Congress. This aims to reduce regulatory burdens and streamline government processes.
New 'Regulation Reduction Act of 2025' Mandates Three Rules Cut for Every New One: Agencies Must Also Identify Costly, Outdated Regulations
The "Regulation Reduction Act of 2025" sets a new mandate for federal agencies: for every new rule they want to introduce, they have to cut at least three existing ones. This applies across the board, but it's especially strict for "major rules" – those with significant economic impact. For those, not only do three related rules have to go, but the cost of the new rule can't be higher than the combined cost of the ones being repealed. The Office of Information and Regulatory Affairs (OIRA) is responsible to certify the cost of the new major rule is equal to or less than the cost of the ones being repealed. (SEC. 2)
Three-for-One Rulemaking
This bill aims to slash red tape. The core idea is that agencies need to seriously clean house before adding anything new. The bill specifically targets rules that impact people, businesses, and state/local governments. It does not apply to rules related to internal agency policy, practices, procurement, or revisions that reduce burden or compliance costs. (SEC. 2)
For example, if the Environmental Protection Agency (EPA) wants to introduce a new regulation on emissions standards, it would need to identify and repeal at least three existing regulations. If it's a "major rule," the cost of compliance with the new emissions standard has to be equal to or less than the cost of complying with the three regulations they're getting rid of. Every repealed rule has to be published officially in the Federal Register. (SEC. 2)
Scrutinizing the Rulebook
Beyond the three-for-one requirement, the bill also forces agencies to take a hard look at their current regulations. Within 90 days of this Act becoming law, every agency head has to send a report to Congress and the Office of Management and Budget (OMB). This report must identify rules that are "costly, ineffective, duplicative, or outdated," and list any other "unnecessary regulatory restriction" that fits that description. (SEC. 2)
Real-World Implications and Challenges
While the goal is to reduce unnecessary burdens, there are some potential catches. For instance, what counts as a "related" rule is open to interpretation. An agency could, in theory, repeal three minor rules to push through a major, costly one. It might also make agencies hesitant to introduce new regulations, even if they're needed, because of the repeal hurdle.
The bill defines key terms like "agency," "rule," "major rule," and "State" by referencing existing U.S. Code sections, providing some legal clarity. (SEC. 2)
Ultimately, this bill represents a significant shift in how regulations are made. It could lead to a leaner regulatory environment, but it also raises questions about how agencies will balance cutting old rules with creating necessary new ones.