HR2965119th CongressWALLET

Small Business Regulatory Reduction Act of 2025

Sponsored By: Representative Van Duyne

Passed House

Summary

Zero-cost cap on small-business regulatory costs. The Small Business Regulatory Reduction Act of 2025 requires the Small Business Administration to ensure its "small business regulatory budget" is not greater than zero beginning in fiscal year 2026 and in every fiscal year after that.

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  • Small businesses: The law defines the "small business regulatory budget" as the costs a rulemaking imposes on small businesses, including costs from new rules and changes to existing rules. It requires the SBA to keep that budget at zero starting in fiscal year 2026.
  • Federal agencies and oversight: The Chief Counsel for the SBA Office of Advocacy must report to Congress within 60 days after the end of fiscal year 2025 and annually after that. Reports must list each rule that affects small businesses and provide total small business regulatory budgets disaggregated by the agency that issued each rule.

*This act does not authorize additional appropriations to carry out its requirements.*

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Zero-cost cap on SBA rules for small businesses

Starting in fiscal year 2026, the SBA would have to keep its small business regulatory budget at zero or less each year. The budget would count costs to small firms from new rules and from changing or repealing old rules. This would limit SBA actions that raise measured costs for small businesses.

Yearly scorecard of rule costs for small businesses

The SBA Office of Advocacy would send Congress a report within 60 days after FY2025 ends, and then every year. It would list each rule from other federal agencies that affects small businesses. It would also show each agency’s total small business regulatory budget for the year.

No new funding for this Act

This bill would not authorize new funds to carry it out. Agencies would need to use existing budgets or seek later appropriations. This could limit or slow implementation.

Agencies could tailor small business definitions

Agencies would generally use the Small Business Act definition of small business. An agency could set a different definition after consulting the SBA Office of Advocacy, taking public comment, and publishing it in the Federal Register. This could change which firms are covered by some rules.

Sponsors & CoSponsors

Sponsor

Van Duyne

TX • R

Cosponsors

  • Del. King-Hinds, Kimberlyn [R-MP-At Large]

    MP • R

    Sponsored 4/17/2025

  • Rep. Meuser, Daniel [R-PA-9]

    PA • R

    Sponsored 4/28/2025

  • Schmidt

    KS • R

    Sponsored 4/28/2025

  • Rep. Finstad, Brad [R-MN-1]

    MN • R

    Sponsored 4/28/2025

  • Bean (FL)

    FL • R

    Sponsored 4/28/2025

Roll Call Votes

No roll call votes available for this bill.

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