Final answer:
The Congressional Review Act mandates that agencies report new rule changes to Congress that significantly affect the economy. This is part of broader efforts by government regulators to ensure proposed regulations are cost-justified, which includes assessing the impact on various economic factors and the cost of compliance with federal regulations.
Step-by-step explanation:
The act that requires agencies to submit a report to Congress on any new rule change that might have a $100,000,000 annual effect or more on the economy, increase the cost or price for consumers, and have a significant adverse impact on competition, employment, investment, and productivity, is the Congressional Review Act.
Government regulators often assess the impact of proposed regulations to determine their reasonableness. This involves examining whether the benefits of a proposal justify its costs.
For instance, the U.S. Department of Transportation evaluates the cost per life saved by required safety systems in vehicles to decide if they should be mandated, using a threshold of $3 million or less.
Another example is in the financial sector, where new rules and regulations to markets may be scrutinized to ensure that they do not excessively burden the economy while achieving their intended purposes.
The broader costs of compliance with federal regulations, such as environmental laws, can also contribute significantly to the economy, amounting to over $200 billion annually for U.S. firms.
These assessments and reporting requirements are part of the efforts by federal agencies to maintain responsive bureaucracy and engage in prudent rulemaking.