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Why House Republicans stripped a regulatory overhaul from their megabill — for now

House Republicans had high hopes of advancing a massive overhaul of federal regulations as they raced to pass their party-line megabill. As it turns out, they still have some work to do to avoid running up against the procedural landmines of the Senate that could doom this effort.

GOP lawmakers included a version of the so-called Regulations from the Executive In Need of Scrutiny, or REINS, Act in early drafts of their party-line domestic policy package, and conservatives who have long fought for the legislation expressed confidence that, after more than a decade, this might be the year it gets through.

But then the House GOP moved to scrap the provision in a package of final amendments to the bill released late Wednesday night, leading up to the early Thursday morning vote.

Original language would have given Congress final approval over any “major rule that increases revenue” and expanded mechanisms for undoing existing rules. It was quietly replaced with a new provision that would set aside money for the White House budget office to “pay expenses associated with improving regulatory processes and analyzing and reviewing rules issued by a covered agency.”

However, Senate Energy and Natural Resources Chair Mike Lee (R-Utah), a REINS Act sponsor, said in an interview Thursday the change was by design: He and others were worried that Senate rules surrounding the budget reconciliation process, which Republicans are using to avoid running afoul of a Democratic filibuster, could imperil its chances.

Best, said Lee, for the House to send the bill to the Senate with placeholder language, leaving it to Senate Republicans to seek to persuade the Senate parliamentarian to add some deregulatory provisions added back in.

“I’m going to fight like heck to get it in there,” Lee said about making sure sections of REINS are in the final “big, beautiful bill” Congress sends to President Donald Trump.

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