On July 24, Reps. Steve Scalise (R-LA) and Doug Collins (R-GA), introduced the National Regulatory Budget Act of 2014 (H.R. 5184). The bill would establish an annual cap of regulatory costs (i.e., a budget for regulatory costs) to which federal agencies must comply. H.R. 5148 is the House version of S. 2153, which was introduced in March by Sen. Marco Rubio (R-FL). The National Regulatory Budget Act of 2014 would require Congress to pass an annual bill establishing a regulatory cost cap for each agency and the federal government overall. It also would establish an independent agency to analyze regulatory costs and find ways to make rules more efficient and less costly. The NAM appreciates the leadership of Sen. Rubio and Reps. Scalise and Collins in promoting efforts to reduce the federal regulatory burdens imposed on manufacturers and other businesses in the U.S.
Manufacturers recognize the important role of regulations in protecting the public and the environment, but unnecessary regulatory costs place manufacturers in the U.S. at a competitive disadvantage within the global economy. New regulations are too often poorly designed and analyzed and ineffective in achieving their benefits. Regulations are allowed to accumulate with no real incentives to evaluate or clean up past measures. They are often unnecessarily complex and duplicative of other mandates.
The National Regulatory Budget Act of 2014 is an innovative reform measure that would provide an incentive for federal agencies to reform our regulatory framework and eliminate unnecessary burdens that impede economic growth. It would help establish a regulatory system that is aligned with Administration initiatives targeting unnecessary regulatory burdens. Executive Orders 13563 and 13610 require agencies to consider cumulative burdens and give priority to regulatory approaches and reforms that would reduce those burdens. Despite these requirements, agency efforts have not produced significant burden reductions, and agencies continue to expand regulatory requirements.
Reducing the unnecessary regulatory burdens imposed on manufacturers and other businesses in the U.S. requires a consistent and systematic process, as well as a discipline and incentives that do not currently exist in our system. The National Regulatory Budget Act of 2014 would help reduce the inefficiencies associated with our current regulatory system by creating incentives and a system that would promote efficiency and better government. We urge Congress to pass S. 2153 and H.R. 5184.