S. 1420 would require agencies to conduct retrospective reviews of major rules they issued beginning 180 days after enactment. The bill defines “major” rules as any regulations that are likely to result in an annual effect on the economy of $100 million or more; substantially increase prices or costs for consumers, industry, government agencies, or individual regions; or significantly affect U.S. companies’ ability to compete with foreign businesses.
Most of the bill’s provisions would codify and expand on existing government regulatory policies, such as Executive Order 13771, which expanded Executive Order 13563 and set the framework for federal agencies to review existing regulations. According to the Office of Management and Budget, agencies are responsible for reviewing previously issued regulations. CBO estimates that although S. 1420 would probably change the methods agencies use to review regulations, implementing the bill would have no significant effect on spending subject to appropriation over the 2019-2024 period.
Enacting S. 1420 could affect direct spending by some agencies (such as the Tennessee Valley Authority) that use receipts from fees, the sale of goods, and other collections to cover operating costs. Because most of those agencies can adjust the amounts they collect as operating costs change, CBO estimates that any net change in direct spending by those agencies would be negligible.