The Administrative Pay-As-You-Go Act of 2023 requires federal agencies to offset any increased government spending that results from their discretionary regulatory actions. When an agency proposes a rule or administrative action that would increase direct spending on federal programs, it must submit a proposal to the Office of Management and Budget showing how it will reduce spending elsewhere by an equal or greater amount to pay for the new costs. The bill applies only to actions with significant budgetary impacts—at least one billion dollars over ten years or one hundred million dollars in a single year—and exempts actions required by law, though agencies must still consult with OMB on how to implement required actions at the lowest cost. The Director of OMB has 90 days to issue guidance on how to evaluate these proposals, and agencies' compliance with these requirements will be assessed in their regular Congressional Review Act reports. The bill includes a sunset provision expiring at the end of 2024 and requires a Government Accountability Office report within six months of enactment.
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