H.R. 580: Unfunded Mandates Accountability and Transparency Act of 2025

This bill, titled the Unfunded Mandates Accountability and Transparency Act of 2025, aims to amend the Unfunded Mandates Reform Act of 1995 (UMRA) to enhance the regulatory impact analyses required for certain federal rules. Here are the key changes and provisions of the bill:

1. Definition and Scope of Major Rules

The bill establishes a clearer definition for what constitutes a "major rule." A major rule is defined as one that the Administrator of the Office of Information and Regulatory Affairs determines is likely to:

• Have an annual economic impact of $100 million or more, adjusted for inflation.
• Significantly increase costs or prices for consumers, industries, or government entities.
• Adversely affect competition, employment, public health, and safety, or the international competitiveness of U.S. enterprises.

2. Regulatory Impact Analyses

Before any proposed major rule can be enacted, federal agencies must prepare and publish an initial and final regulatory impact analysis that includes:

• An assessment of the anticipated benefits and costs, quantified where possible.
• Consideration of alternative regulatory approaches.
• An evaluation of how the rule complies with existing legal requirements.
• An assessment of potential budgetary effects on various levels of government.
• Estimates of impact on job creation or loss.
• A summary of consultations with affected stakeholders, including state and local governments and private sector parties.

3. Enhanced Stakeholder Consultation

The bill requires agencies to consult more comprehensively with impacted parties, including small businesses, throughout the rulemaking process. This consultation should occur early and encompass a wide range of perspectives.

4. Net Benefits Maximization

Agencies are required to choose regulatory options that maximize net benefits based on their analyses, unless an alternative is approved for compelling reasons that justify a different choice.

5. Responsibilities of the Office of Information and Regulatory Affairs

The bill expands the responsibilities of the Office of Information and Regulatory Affairs, including ensuring that major rules comply with required principles and identifying any noncompliance before a rule is finalized.

6. Rulemaking Initiation Requirements

When agencies initiate rules that may be classified as major, they must establish an electronic docket and publish a notice that describes the rule and invites public comment on possible alternatives before the official rulemaking process begins.

7. Inclusion of Independent Regulatory Agencies

The bill expands the application of UMRA to independent regulatory agencies, ensuring they also follow the same analytical requirements unless dealing with monetary policy.

8. Judicial Review Procedures

The bill provides individuals who are impacted by a final major rule the right to sue for judicial review, ensuring agencies meet compliance requirements as outlined in the legislation.

9. Point of Order on Private Sector Mandates

It revises the point of order related to federal mandates affecting the private sector to ensure accountability and transparency in how such mandates are proposed and implemented.

10. Effective Date

The provisions related to regulatory impact analyses and stakeholder consultations will take effect 120 days after the bill is enacted.

Relevant Companies

• AAPL - Apple Inc.: Changes in regulations impacting technology industries could have significant effects on compliance costs and product pricing.
• MSFT - Microsoft Corporation: Similar to Apple, Microsoft could face new costs and regulatory requirements affecting software and technology services.
• GOOGL - Alphabet Inc.: As a major tech company, changes in regulatory requirements could impact Google's operations and compliance costs.
• AMZN - Amazon.com, Inc.: With its vast marketplace and services, Amazon may be directly affected by changes in regulations and compliance requirements.