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.

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 statutory requirements (including those under the Fair Labor Standards Act); or (2) create a significant risk to the public health (including environmental and occupational health and safety).

Requires all negotiations under this Act to be open to the public. Directs the Director to publish in the Federal Register any agreements providing for regulatory relief under this Act.

Directs Federal agencies to waive or modify any regulation subject to an agreement negotiated under this Act. Makes any such agreement, waiver, or modification a final agency action for judicial review purposes. Entitles any person aggrieved by an agreement, waiver, or modification to bring an action for judicial review.