Sunset Clause

A sunset clause is a provision in a law, agreement, or contract that sets an expiration date for that law or agreement unless further action is taken to extend it. It serves to ensure that policies are reviewed periodically, promoting accountability and adaptability to changing circumstances. For instance, a temporary tax cut might include a sunset clause that allows it to remain in effect for a limited time, after which it must be reassessed by lawmakers. This helps prevent outdated regulations from lingering indefinitely.