Regulation Policy

Heritage Backgrounder: Congressional Review Act Never Used

The Congressional Review Act (CRA) allows Congress to review each new rule proposed by federal agencies and consider a joint resolution of disapproval to overrule it. But analysts point out that in the two years since the act was passed only a handful of such resolutions were introduced, and none came close to a floor vote -- with the result that not one new rule was disapproved.

One problem, say analysts, is that federal agencies are crafting a large number of rules while Congress employs only a handful of people to monitor federal regulatory activity.

  • The current federal regulatory system encompasses more than 50 federal agencies, more than 126,000 workers, and annual spending of $14 billion.

  • Between April 1, 1996 -- when the U.S. General Accounting Office (GAO) began to track the final rules issued by federal agencies under the CRA -- and April 30, 1998, Congress received 8,675 new final rules for review.

  • In addition, 126 of these 8,675 rules qualified as "major" rules, each of which would impose a cost of at least $100 million annually on the American economy.

  • These 126 major rules--only 1.0 percent of all final rules during this period--will cost American consumers, employers, employees and taxpayers at least $12.6 billion.

In many cases, the only information on a new rule that is available to Congress is provided by the agency promulgating the rule. The limited information that currently exists about the costs and benefits of regulation, and the sheer volume of final rules issued, have led several members of Congress to introduce bills to establish a Congressional Office of Regulatory Analysis (CORA) to monitor the federal regulatory system.

Source: Angela Antonelli, "Two Years and 8,600 Rules: Why Congress Needs an Office Of Regulatory Analysis," Backgrounder No. 1192, June 26, 1998, Heritage Foundation, 214 Massachusetts Avenue, N.E., Washington, D.C. 20002, (202) 546-4400.

For text http://www.heritage.org
/heritage/library/backgrounder/bg1192.html


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