billS164Event Thursday, August 6, 2026Analyzed

Midnight Rules Relief Act of 2025

Neutral

Summary

The Midnight Rules Relief Act (S.164) allows Congress to disapprove multiple regulations from the final year of a President's term in a single joint resolution, streamlining the Congressional Review Act process. The bill was reported favorably out of committee on August 6, 2026, but has no direct spending or sector-specific provisions. Its impact on markets is indirect and contingent on future regulatory actions.

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Key Takeaways

  • 1.S.164 enables en bloc disapproval of midnight rules, streamlining regulatory rollback.
  • 2.No direct spending or sector targeting; impact is procedural and indirect.
  • 3.Passage would be a tailwind for deregulation-sensitive industries but depends on future legislative action.

Market Implications

The bill has no immediate market implications. If enacted, it could increase the likelihood of regulatory rollback in the next Congress, benefiting industries with high regulatory exposure. However, without specific regulations targeted, the effect is diffuse and long-term. No tickers are directly affected.

Full Analysis

The Midnight Rules Relief Act of 2025 (S.164) amends the Congressional Review Act to permit en bloc disapproval of regulations submitted during the final year of a President's term. Currently, each joint resolution can only disapprove one regulation. This bill would allow Congress to bundle multiple 'midnight rules' into a single disapproval resolution, increasing legislative efficiency in overturning last-minute regulations. The bill was introduced by Sen. Ron Johnson (R-WI) on January 21, 2025, and ordered to be reported favorably without amendment by the Committee on Homeland Security and Governmental Affairs on August 6, 2026. It awaits floor action in the Senate. A companion bill, HR77, exists in the House.

There is no funding authorized or appropriated in this bill. The mechanism is purely procedural: it changes how Congress can disapprove regulations. The money trail is indirect—if the bill passes, it could enable faster rollback of regulations that impose compliance costs on businesses. However, no specific regulations are targeted, and the impact depends entirely on which rules are disapproved in the future.

Structural winners would be industries heavily affected by federal regulations, such as energy, manufacturing, finance, and healthcare, as they could see reduced compliance burdens if Congress uses this tool to overturn rules. However, the bill does not name any specific sector or company. Losers would be entities that benefit from the regulatory status quo, such as environmental groups or regulated industries that prefer stable rules.

The timeline: the bill must pass the Senate and House and be signed by the President. Given its partisan sponsorship (all Republicans) and the current divided government, passage is uncertain. The bill's momentum is moderate—it cleared committee but has not been scheduled for floor debate.

Key Legislators

Sen. Johnson, Ron [R-WI]

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