Republican Lawmaker Introduces Bill to Prevent Special-Interest Groups from Altering Federal Regulations through Lawsuit

Representative Bob Good (R., Va.) on Thursday reintroduced legislation to limit the ability of special-interest groups to alter federal regulations through the use of lawsuits against federal agencies.

So-called “sue-and-settle” tactics result in federal agencies entering into settlement agreements and consent decrees that effectively create new regulations without congressional approval.

“The executive branch should not have free rein to abuse the courts in order to advance its radical policies,” Good said in a statement to National Review. “My legislation aims to end ‘sue-and-settle’ tactics, bring accountability to the regulatory process, and protect Congress’ Constitutional power to make laws. The Biden Administration should not resort to the courts to circumvent existing law.”

The use of “sue-and-settle” practices increased under the Obama administration. After the Trump administration EPA administrator Scott Pruitt sought to end the practice, the Biden administration has picked it back up.

“The weaponized Biden Administration continues looking for more ways to add burdensome regulations to the economy and reward hand-picked special interest groups with taxpayer dollars,” a press release from Good’s office says. “It is clear that sue-and-settle must be addressed by law, especially in light of many former activists serving in President Biden’s Administration.”

Good’s proposed legislation would make clear that a federal agency can’t enter into a settlement agreement of consent decree that exceeds the authority of the court and would also prohibit the payment of attorney fees or litigation costs in lawsuits with a federal agency that result in a settlement agreement or consent decree.

The reintroduction of the 2021 bill comes after the House Oversight Committee recently announced an investigation into the EPA’s use of sue-and-settle tactics.

House Oversight Committee chairman James Comer and Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs chairman Pat Fallon wrote a letter to EPA administrator Michael Regan last month requesting documents and information to “examine how the Biden Administration is using sue-and-settle practices to skirt congressional oversight and promulgate burdensome regulations at the bidding of special interests.”

The lawmakers suggest Regan’s decision to revoke a policy curbing sue-and-settle consent decrees and settlement agreements in March has caused the proliferation of sue-and-settle abuses at the EPA.

The pair write that the practice is “costly and detrimental to American businesses and consumers.” Comer and Fallon cite the EPA’s consideration of new standards for water pollution rules for meat processors for the first time in nearly 20 years as one such example. The new rule is part of a consent decree resulting from a lawsuit filed by environmental groups against EPA. The new rules could cost each processor upwards of a million dollars, the lawmakers say.

“In the wake of your decision to revoke past policy, it remains unclear how many sue-and-settle consent decrees and settlement agreements have been entered into by your agency as well as their costs,” the lawmakers wrote. “Recent reports indicate that the Biden Administration has already shoveled out ‘over double the amount in taxpayer-backed payouts to liberal climate activists and other groups’ in sue-and-settle litigation than the previous administration did over four years.”