Congresswoman Spartz, Senator Grassley Urge President Biden to Prohibit "Sue-and-Settle' Practice

Press Release

WASHINGTON, D.C. -- Representative Victoria Spartz (IN-05) worked with Senator Grassley (R-Iowa) and 16 of their colleagues to send a letter to President Biden urging him to prohibit a practice known as "sue-and-settle.'

Sue-and-settle tactics place special interest priorities above the public interest by allowing activist agencies to circumvent the public rulemaking process through "friendly lawsuits" and settlements, undermining the Administrative Procedure Act and costing taxpayers billions of dollars.

"Congress must provide proper legislative oversight of the executive branch to ensure transparency and accountability," said Rep. Spartz. "Congress is the only branch which should be producing laws. All rulemaking processes must be conducted under the Administrative Procedures Act and have proper regulatory oversight."

"For years prior to the Trump administration, pro-regulation activists have colluded with complicit federal agencies to short circuit our transparent rule making process and force new policy without any public input. The Biden administration should build upon the work of the Trump administration to once and for all put a stop to this abusive practice," Sen.Grassley said.

According to the American Action Forum, from 2005 to 2016, twenty-three sue and settle regulations resulted in a cost burden of $67.9 billion, with $26 billion in annual costs. Sixteen of the rules impose paperwork burdens on American jobs creators of more than eight million hours.

In addition to the letter issued to President Biden, Rep. Spartz and Sen. Grassley are also working to address this issue legislatively.

The letter sent to President Biden is available online.

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