RED TAPE Act

The RED TAPE Act would restrict how federal agencies evaluate new regulations by requiring them to only consider factors that can be assigned a specific monetary value in their cost-benefit analyses. Under this bill, agencies could not factor in unmeasured or unquantified considerations when developing proposed or final rules. The Office of Management and Budget would also be prohibited from approving or considering any nonmonetized factors in regulatory analyses.

If enacted, the bill would allow citizens and businesses to challenge regulations in court if they believe an agency relied on unmeasured factors in its analysis. If a court agrees, it must declare the rule invalid. The bill would also require agencies to publicly publish all their regulatory analyses. These changes would take effect 30 days after the bill becomes law, assuming it passes Congress and receives presidential approval. Currently, the bill has been introduced and received committee hearings but has not advanced further in the legislative process.