This bill requires the Director of the Office of Management and Budget, in consultation with the National Institute of Standards and Technology, to implement an annual process that uses an artificial intelligence system to identify redundant or outdated regulations within the Code of Federal Regulations. The identified regulations are immediately referred to the agency responsible for promulgating them for review.
If an agency determines a regulation is outdated or redundant, it must act within 30 days to rescind or amend the regulation. The act also expands expedited authority to remove or modify redundant or outdated regulations as part of the annual CFR review.
The goal is to streamline the CFR by eliminating rules that overlap, duplicate, or no longer serve a regulatory purpose, while maintaining essential information and regulatory function. Proponents argue that a standards-driven AI approach can improve accuracy and transparency, while critics caution about overreliance on automation and the need for robust safeguards and due process.
At a Glance
What It Does
The bill requires an annual AI-driven process, led by the OMB in collaboration with NIST, to identify redundant or outdated CFR regulations. It mandates referral of identified rules to the promulgating agency and 30-day determinations, followed by 30-day rescission or amendment as appropriate. It also formalizes ongoing, standards-based oversight of the AI system.
Who It Affects
Federal agencies that promulgate CFR regulations, the OMB and NIST as oversight bodies, and regulatory staff responsible for implementing and updating CFR provisions. The changes will indirectly affect regulated entities and the public by altering which rules are in force.
Why It Matters
This introduces a repeatable, AI-assisted mechanism to keep the CFR current and lean, potentially reducing regulatory burden and administrative overhead while aiming to preserve essential safeguards. It concentrates authority in the executive branch to remove or amend rules but requires explicit, auditable decisions.
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What This Bill Actually Does
The Leveraging Artificial Intelligence to Streamline the Code of Federal Regulations Act of 2025 creates a structured, annual review of the CFR using an AI system. The Director of the Office of Management and Budget, working with the National Institute of Standards and Technology, must establish a process to identify regulations that are redundant or outdated.
The mechanism relies on an AI system that adheres to high standards for accuracy, transparency, accountability, and national security as defined by NIST. Each year, and 90 days after enactment, the process scans CFR entries and flags those that duplicate other rules, no longer apply due to newer legislation or technological developments, or otherwise fail to serve a regulatory function.
When the AI identifies a regulation as redundant or outdated, it must be referred to the agency that promulgated the rule for review. The agency has a tight window—30 days—to determine whether the regulation is indeed outdated or redundant and, if so, must act within another 30 days to rescind or amend the regulation.
The statute explicitly allows the agency to bypass some traditional procedural requirements to implement these changes swiftly, so long as the actions are consistent with the statutory process and are publicly reported with a brief explanation.Section 4 adds an expedited pathway: a rule determined to be redundant or outdated under this act can be removed or amended via an adjustment to 5 U.S.C. 553(b), signaling a deliberate shift toward faster regulatory cleanup for rules identified by the annual review. The overall aim is to keep the CFR aligned with current law and emerging technology, reducing unnecessary overlaps without weakening the federal regulatory framework.
The Five Things You Need to Know
The bill requires an annual AI-driven review of the CFR to identify redundant or outdated regulations.
An AI system used must meet strict standards for accuracy, transparency, and security as set by NIST.
Identified regulations are referred to the promulgating agency, which must decide within 30 days if they are outdated or redundant.
If a regulation is deemed outdated or redundant, the agency must rescind or amend it within 30 days of the determination.
Section 4 creates an expedited path to rescind or amend redundant/outdated regulations by amending 5 U.S.C. 553(b).
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Definitions
This section defines key terms used throughout the bill: what constitutes an agency, what an artificial intelligence system is, what it means for a regulation to be redundant or outdated, and the scope of the Code of Federal Regulations. The definitions align ongoing review with existing statutory constructs (e.g., 5 U.S.C. 551 for agency definitions) to ensure the review operates within familiar regulatory boundaries.
Annual AI Review Trigger
Not later than 90 days after enactment, and annually thereafter, the Director of the Office of Management and Budget, in consultation with the National Institute of Standards and Technology, must implement a process for identifying redundant or outdated CFR regulations using an AI system. The structure establishes a fixed cadence for review and assigns lead responsibility to the OMB, with expert input from NIST to anchor the process in established standards.
AI System Standards
The AI system used in the review must meet standards set by NIST for accuracy, transparency, accountability, and national security risk. This ensures that automated identifications are credible, auditable, and defensible against challenges to their objectivity or safety implications.
Process Oversight
Not less frequently than once per fiscal year, the OMB director, in coordination with NIST, shall review the review process and the AI system to confirm it functions properly and continues to meet the established criteria. This creates a feedback loop to keep the mechanism aligned with policy goals and technical capabilities.
Referral and Review of Regulations
A regulation identified as redundant or outdated must be immediately referred to the agency responsible for promulgating it. Within 30 days, agency personnel determine whether the regulation is outdated or redundant, and that determination is final.
Rescission of Regulations
Within 30 days after a determination of redundancy, the agency that promulgated the regulation must rescind or remove it from the CFR, notwithstanding general regulatory constraints in Title 5 governing rulemaking.
Amendment of Regulations
Within 30 days after a determination that a regulation is outdated, the promulgating agency must amend the regulation to bring it up to date, or rescind or remove it if amendment is not feasible, again notwithstanding the usual 5 U.S.C. 553 considerations.
Written Determination and Transparency
All determinations must be published on the relevant agency’s website, with a brief written explanation. The agency head may submit a classified annex to Congress if necessary to supplement the public explanation, preserving transparency while protecting sensitive information.
Expedited Rescission and Amendment
Section 4 amends 5 U.S.C. 553(b) to explicitly permit expedited rescission or amendment of regulations identified as redundant or outdated by the annual CFR review. This creates a formal legal basis for faster action on cleanup proposals arising from the AI-driven process.
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Explore Government in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Office of Management and Budget (OMB) gains a standardized, repeatable process for CFR maintenance and clear accountability for results.
- National Institute of Standards and Technology (NIST) gains authoritative role in setting AI standards for regulatory review.
- Agencies that promulgate CFR regulations (e.g., EPA, DOT, FCC) benefit from a clearer pathway to remove or update outdated rules.
- Regulatory compliance teams in large organizations benefit from clearer, up-to-date regulatory references and reduced overlap.
- Small regulated entities may benefit from a leaner CFR, reducing compliance complexity and cost.
Who Bears the Cost
- Promulgating agencies incur costs to review, amend, or rescind regulations within tight deadlines and to communicate changes publicly.
- OMB and NIST carry ongoing administrative and oversight costs to operate and audit the AI-driven process.
- AI technology vendors and service providers bear costs related to developing, maintaining, and validating the AI system and standards.
- Some regulated industries may incur transition costs to adjust to updated or removed requirements and to update compliance programs.
- There is a risk of up-front compliance burden during the initial deployment as agencies calibrate the AI system and processes.
Key Issues
The Core Tension
The central dilemma is balancing speed and breadth of CFR cleanup with the risk of eroding important regulatory safeguards. The AI-driven process promises efficiency and clarity, but rapid rescission or amendment may outpace regulatory analysis and stakeholder input, potentially compromising policy effectiveness or public trust.
The bill embeds an automation-assisted approach for CFR cleanup, which raises questions about over-reliance on AI for regulatory decision-making and the sufficiency of the 30-day determinative windows. While the process aims to reduce regulatory bloat, misidentification or underappreciation of a regulation’s broader impact could remove protections or create gaps if agencies are unable to conduct timely, thoughtful reviews.
The need to publish determinations publicly supports transparency, but the possibility of a classified annex to Congress introduces a transparency trade-off. Finally, Section 4’s expedited pathway subtly shifts the balance of due process by allowing faster amendments or rescissions, which could interact with other regulatory procedures and stakeholder notice requirements.
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