U.S. House Approves Landmark Regulatory Reform Measure that Cuts Red Tape

Press Release

Iowa Congressman Tom Latham today hailed passage of landmark regulatory reform legislation by the United States House of Representatives. The bill, H.R. 367 -- more commonly known as the REINS Act -- provides a needed check on the recent explosion in costly federal regulations, saving American taxpayers, small business employers, and farmers time and money that affect their bottom line. The bill requires federal agencies to submit regulations costing in excess of $100 million to both chambers of the U.S. Congress for an up-or-down vote before they could take effect, creating a check and balance on federal agencies that have virtual blank checks in creating new and massive federal regulations.

The final bill also includes an amendment authored by Latham mandating that federal agencies identify redundant regulations. The American Action Forum, headed by former director of the nonpartisan Congressional Budget Office, Douglas Holtz-Eakin, estimates that duplicative regulations cost the economy a ridiculous $46 billion -- a cost that requires 321,000 employees working 2,000 hours annually to comply.

"The cost and damage of federal red tape to job growth and the economy is one of the top issues of concern that Iowans convey to me on a daily basis," Latham said. "This landmark legislation that includes my amendment is a significant win in the battle of common sense over the ever-growing and productivity-choking effects of the federal regulatory process. But the fight isn't over -- we'll have to wage many more battles to fully rein in overregulation from the federal government."

Latham offered his amendment Wednesday evening on the House floor, and responded to a criticism from Congressman Hank Johnson of Georgia that the amendment "would add yet another onerous and unnecessary burden on [federal] agencies."

"The gentleman was talking earlier about opposing this amendment because it creates "busy work' for the agencies. What about the busy work [of] the small businesses to comply with these mountains and mountains of regulations?" Latham said on the floor. "Like previous speakers have said, the biggest reason that people are not hiring today is because of the cost of regulations."

Source