RED TAPE Act

This bill, known as the RED TAPE Act, seeks to fundamentally alter how federal agencies conduct regulatory analyses by prohibiting the consideration of non-monetized or unquantified factors. It mandates that both agencies and the Office of Management and Budget (OMB) must exclude such factors when performing regulatory impact analyses or benefit-cost analyses for any proposed, final, or interim final rule. The legislation emphasizes that agencies should prioritize tangible, immediately quantifiable monetary benefits in their decision-making processes.

To ensure compliance and transparency, the bill requires agencies to publish a summary and the full text of each regulatory impact and benefit-cost analysis in the Federal Register, including detailed methodologies and rationales. Furthermore, it establishes a robust judicial review process, allowing any affected party to challenge a rule if an agency considered prohibited factors. If a court finds such a violation, it is mandated to invalidate the rule, with this provision applying to rules issued on or after November 9, 2023. The OMB is also directed to issue revised guidance to agencies within 90 days of enactment to ensure adherence to these new requirements.