Federal Paperwork Reduction Act of 1981

Federal Paperwork Reduction Act of 1981 - Requires each Federal agency to reduce, by a specified amount each year until fiscal year 1985, the paperwork burden placed upon business, the private sector, and State and local governments. Directs that in such year such paperwork burden shall not exceed 65 percent of the paperwork required by such agency in fiscal year 1980.

Limits the budget authorizations of any agency which fails to meet the annual reduction quotas established by this Act. Requires the Director of the Office of Management and Budget to review and report to Congress on the progress of agency paperwork reduction programs.

Amends the Legislative Reorganization Act of 1970 to require all public legislation reported by any Congressional committee to be accompanied by a Paperwork Impact Statement: (1) detailing the paperwork burden which would be imposed upon business, the private sector, and State and local governments by such legislation; and (2) assessing the extent to which the information sought by such legislation is available through existing requirements or procedures.