H.R. 572 — RED TAPE Act

This section states congressional findings that agencies must prioritize tangible, immediately quantifiable monetary benefits in regulatory decision-making to ensure actions yield clear, measurable financial benefits to the public and private sectors while minimizing unnecessary costs or burdens.

This section amends section 601 of the Regulatory Flexibility Act (RFA; 5 U.S.C. ch. 6)—which requires federal agencies to assess regulatory impacts on small entities (i.e., small businesses, organizations, and governmental jurisdictions)—to add definitions of (9) "benefit-cost analysis," referencing Office of Management and Budget (OMB) Circular A-94 as revised on November 9, 2023, or successor; and (10) "regulatory impact analysis," referencing Executive Orders 12866, 13563, and 14094 and OMB Circulars A-4 and A-94 as revised on November 9, 2023, or successors. The section further adds a new RFA section 613 to (1) prohibit agencies from considering non-monetized or unquantified factors in regulatory impact analyses or benefit-cost analyses for proposed, final, or interim final rules; (2) prohibit OMB from authorizing or considering such factors; (3) require agencies to publish in the Federal Register with each such rule a summary and full text of the analyses, including methodology and rationale; (4) direct the OMB Director to issue compliance guidance within 90 days of enactment; and (5) authorize affected parties to seek judicial invalidation in U.S. district court of rules issued on or after November 9, 2023, that violate these prohibitions. (Thus, agencies must rely solely on monetized, quantified factors in regulatory analyses.)