BLOCK Act

Bill Summary: BLOCK Act (S. 368)

The Bureaucratic Limitation and Overreach Control (BLOCK) Act is a legislative proposal designed to fundamentally shift the balance of power between federal agencies and Congress regarding the creation and implementation of government regulations.

1. Main Purpose and Intent

The primary goal of the BLOCK Act is to limit "regulatory overreach" by requiring congressional approval for significant agency rules before they can take effect. Unlike the current system—where agencies generally issue rules that remain in effect unless Congress actively votes to overturn them—this bill establishes a "positive approval" requirement for "major rules."

2. Key Provisions

Classification of Rules

The bill categorizes regulations into two tiers based on their economic impact:
* Major Rules: Any rule that the Comptroller General determines will result in an annual compliance cost of $50 million or more.
* Nonmajor Rules: Any rule that does not meet the $50 million threshold.

The Approval Process

• For Major Rules: These rules cannot take effect unless Congress passes a joint resolution of approval. If no resolution is passed within 30 session/legislative days, the rule is deemed not approved and cannot be implemented.
• For Nonmajor Rules: These follow a disapproval process. Congress has 60 days to pass a joint resolution of disapproval to stop the rule from taking effect.
• Presidential Emergency Override: The President may allow a major rule to take effect for a single 15-session-day period if it is deemed necessary for national security or disaster response.

Strict Reporting Requirements

Before a rule can be submitted for review, agencies must provide:
* Detailed data, scientific/economic studies, and cost-benefit analyses.
* A finding from the Comptroller General on whether the rule is "major."
* An estimate of the rule's effect on inflation.
* An analysis of jobs added or lost (distinguishing between public and private sectors).
* A statement of the constitutional authority allowing the agency to make the rule.

Review of Existing Regulations (Sunset Provision)

The bill includes a "look-back" mechanism for rules already in effect:
* Agencies must designate 20% of their existing rules for review every year for four years.
* If Congress does not pass a joint resolution of approval for these existing rules within 90 days of designation, they lose their effect.
* Any existing rule not approved by Congress within five years of the Act's enactment will automatically expire (sunset).

3. Who is Affected?

• Federal Agencies: Agencies would face significantly more paperwork, stricter deadlines, and a loss of autonomy over their regulatory timelines.
• The Comptroller General (GAO): This office gains a central role in determining the economic impact of rules.
• Private Sector/Businesses: Companies would benefit from greater transparency regarding compliance costs and a higher threshold of congressional scrutiny before new costly regulations are imposed.
• The Public: The bill aims to reduce the "administrative state," potentially slowing the speed at which new government regulations are enacted.

4. Important Exceptions and Details

• Monetary Policy: The Federal Reserve and the Federal Open Market Committee are exempt from this Act to ensure the independence of U.S. monetary policy.
• Specific Rule Types: Rules regarding hunting, fishing, or camping, as well as certain "good cause" nonmajor rules, may take effect at the agency's discretion.
• Judicial Review: The bill explicitly prohibits judicial review of congressional actions under this Act, though courts may still determine if an agency completed the required procedural steps.

5. Timeline and Status

• Introduced: February 3, 2025.
• Current Status: Referred to the Senate Committee on Homeland Security and Governmental Affairs.