House Passes Regulatory Reform Bill

On June 14, the House was set to pass H.R.277, the REINS Act. The REINS Act (Regulations from the Executive in Need of Scrutiny) would subject every major regulation (those with an economic impact of $100 million or more) to Congressional approval before it could take effect. Nonmajor rules (those with economic impact under $100 million) would be permitted to take effect unless Congress votes to disapprove them.

Among the issues at the heart of the current intra-GOP disagreements is regulatory reform. The big majority of Republican lawmakers support legislation to rein in regulations, but the disputes about how the House is run and on the need for spending cuts without tax increases have stalled House efforts to pass bills that would curtail regulatory authority.

When 11 ultra-conservative House Republicans shut down the House floor on June 7, one of the bills that, as a result, failed to advance to a House vote was one giving Congress more power over regulations. The REINS Act, H.R.277, is a core part of the House GOP priority agenda.

The REINS Act, were it to be enacted, could have a profound impact on many issues important to NAIFA. These include, among others:

• A potential new fiduciary rule from the Department of Labor.
• Worker classification (whether a worker is an employee or an independent contractor) rules.
• CMS (Centers for Medicare and Medicaid) rules regarding marketing practices by health insurance advisors.
• A wide range of tax regulations, including much-needed guidance on many provisions in the SECURE 2.0 law (including the catch-up contribution glitch).

Congress may also consider legislation that would overturn the Supreme Court “Chevron Doctrine.” The Chevron Doctrine requires courts to defer to regulatory priorities when the agency in question presents a reasonable interpretation of ambiguous statutes. Repeal or even modification of the Chevron Doctrine would also have a significant impact on regulations.

Prospects: The REINS Act (and other regulatory reform measures) will probably hit a roadblock in the Democratic-controlled Senate, and/or run into a Presidential veto. But regulatory reform is an issue growing as a priority for many GOP lawmakers. And given the impact they could have on issues important to NAIFA, regulatory reform is something NAIFA is watching closely. 

NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Michael Hedge – Senior Director – Government Relations, at mhedge@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.