Congresswoman Spartz Files Legislation to Hold Federal Agencies Accountable in Issuing Regulations

Press Release

WASHINGTON, D.C. -- Representative Spartz (R-Ind.) introduced legislation to end the practice of "sue-and-settle," which is a tactic used by the executive branch that undermines the Administrative Procedures Act and costs taxpayers billions.

The Sunshine for Regulatory Decrees and Settlements Act of 2021, introduced alongside Senator Chuck Grassley (R-Iowa), shines a light on "sue-and-settle" litigation and restores the transparency, public scrutiny, and judicial review protections of the rulemaking process.

"I introduced the Sunshine for Regulatory Decrees and Settlements Act to ensure transparency and accountability in our federal government and restore the public's trust in how it makes decisions," said Rep. Spartz. "We simply cannot allow the activist agencies and special interest groups to circumvent the rulemaking process and implement burdensome regulations on small businesses and individuals without proper due process."

Historically, federal agencies and like-minded special interest groups have used "friendly lawsuits" or "sue-and-settle" tactics to create new regulations without following the rulemaking process. Representative Spartz's bill addresses this issue by requiring public notices, courts to consider public input and regulatory statutes, the Attorney General to certify on proper agency's authority and funding, and reporting to Congress to improve transparency and legislative oversight. It also establishes timeframes for public input.

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 job creators of more than eight million hours.

Earlier this week, Representative Spartz and Senator Grassley led 16 of their colleagues in sending a letter to President Biden urging him to prohibit this harmful and costly practice. The full text of the bill can be viewed online.

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