PolicyBrief
S. 368
119th CongressFeb 3rd 2025
BLOCK Act
IN COMMITTEE

The BLOCK Act mandates that all major federal agency rules receive explicit Congressional approval before taking effect and establishes a systematic process for Congress to review and potentially disapprove nonmajor rules.

John Kennedy
R

John Kennedy

Senator

LA

LEGISLATION

New BLOCK Act Requires Congressional Approval for Federal Rules Costing Over $50 Million: Massive Shift in Regulatory Power Proposed

The BLOCK Act aims to fundamentally change how the federal government operates by stripping executive agencies of their power to finalize rules without a direct vote from Congress. Currently, agencies like the EPA or the Department of Labor can issue regulations based on laws already passed by Congress. Under this bill, any 'major rule'—defined as one with a compliance cost of $50 million or more annually—is effectively dead on arrival unless both the House and Senate pass a joint resolution to approve it within a strict 30-day window. If Congress stays silent or gets bogged down in debate, the rule simply never takes effect. This shifts the 'default' setting of government from active regulation to a system where inaction by politicians prevents new standards from being set.

The $50 Million Filter

To decide which rules get this extra scrutiny, the Comptroller General will act as a gatekeeper, tagging rules as 'major' or 'nonmajor' based on their economic impact (Sec. 2). For a major rule, the agency has to hand over a massive homework assignment to Congress, including a full cost-benefit analysis and a breakdown of exactly how many public and private sector jobs might be gained or lost. Think of it like a small business owner who needs a bank loan; the agency has to prove the 'ROI' of a new safety or environmental standard before it can move forward. However, because the bill uses the phrase 'likely to have' an impact, there is a gray area where the classification of a rule could become a political football before the actual policy is even discussed.

A Sunset for Existing Rules

Perhaps the most aggressive part of this bill isn't about new rules, but the ones we already live with. Starting six months after the bill passes, agencies must pick 20% of their current rules every year for a five-year 're-approval' cycle (Sec. 2). If Congress doesn't vote to keep these existing rules alive, they expire. For a family relying on specific clean water standards or a contractor following established safety protocols, this creates a 'cliff' where long-standing protections could vanish simply because Congress didn't get around to voting on them. This 'all-or-nothing' mechanism for existing rules means that if one controversial rule is bundled into a group, the whole batch could fail, potentially deleting decades of regulatory framework in one go.

Speed Bumps and Safety Valves

While the bill creates a fast-track for voting—limiting Senate debate to just two hours for major rules—the sheer volume of regulations could easily overwhelm a busy legislative calendar. There are a few exceptions: the Federal Reserve is exempt, and the President can bypass the rules for 15 days in a national security emergency. However, for the average consumer or office worker, this bill means that the 'rules of the road' for everything from food safety to overtime pay will now depend entirely on the political will of Congress. If you’re a small business owner, this might mean fewer new compliance costs, but it also introduces a massive amount of uncertainty about which current laws will still be on the books five years from now.