A bill to encourage State and local governments to increase investments in distressed areas by permitting such governments to negotiate reductions in their regulatory burdens with the Office of Management and Budget.

[AI summary unavailable — showing source text] Authorizes any State or local governments to negotiate reductions in their regulatory burdens by demonstrating to the Director of the Office of Management and Budget that it will invest: (1) in all distressed areas within its jurisdiction (ten percent more than the previous year); or (2) in any one distressed area within its jurisdiction (50 percent more than the previous fiscal year without reducing its investment in any other distressed area). Counts the expenditure of funds from sources other than government funds as an increased expenditure if the government can demonstrate that such expenditures would not have been made but for action taken by the government. Allows the Director to negotiate with respect to any Federal regulation that the State or local government can demonstrate is unduly burdensome, duplicative, or unnecessary to the attainment of its statutory objectives. Prohibits a State or local government from negotiating with respect to a Federal regulation unless it also can demonstrate that it has a record of compliance with the objectives of such regulation. Prohibits the Director from allowing any regulatory relief which would: (1) directly violate certain statutor…