House Passes HR Policy-Supported Moratorium on Regulations Costing At Least $50 Million

July 27, 2012

A bill passed by the House this week underscores the importance of having the Office of Management and Budget scrutinize agencies, such as the OFCCP, on their cost estimates of regulatory proposals.  In order to avoid the rigorous reviews required by the existing Unfunded Mandates Reform Act for rules costing $100 million or more, the OFCCP estimated that its proposed disability affirmative action rules would only cost $81.1 million.  This week, HR Policy sent to OMB a new cost analysis prepared by Applied Economic Strategies setting the tab at $5.9 billion in the first year alone.  The bill (H.R. 4078), which was passed by the House by a vote of 245 to 172, would impose a moratorium on most regulations with an annual cost of $50 million until the national unemployment rate drops to six percent.  Significantly, the bill gives the Office of Management and Budget the final authority to determine the cost impact of the regulation.