The Prove It Act would change how federal agencies handle rules that affect small businesses, by amending the Regulatory Flexibility Act in title 5 of the U.S. Code. Agencies would have to estimate the indirect costs a proposed rule could place on small businesses, including companies that buy from, sell to, or otherwise do business with the firms a rule directly regulates. Small businesses, or groups that represent them, could petition the Small Business Administration's Chief Counsel for Advocacy to challenge an agency's finding that a rule will not significantly affect small firms, and that finding could then be taken to court as final agency action. If an agency refuses to take part in the Chief Counsel's review, the final rule would not apply to small businesses at all. Agencies would also have to post guidance documents for high-impact rules on regulations.gov and let the public comment on them, and any rule an agency fails to review within the required 10 years would automatically stop being in effect, a requirement that reaches back to rules issued in the five years before the law passes. The Act provides no new funding to carry out these duties.
Transparency & Accountability
- Indirect-cost disclosure — Agencies must list foreseeable indirect costs on small entities in rule analyses
- Guidance-document publication — Agencies must post guidance for high-impact rules and open it to public comment
- Certification review process — Small entities can petition SBA Advocacy to review "no significant impact" findings
- Judicial review of certifications — "No significant impact" findings become reviewable final agency action
- Mandatory 10-year rule review — Enforcement added requiring agencies to meet the periodic-review deadline
Average Household Impact
- Continued effect of federal rules — Rules unreviewed within 10 years automatically lapse, reaching back 5 years
- Rule applicability — Final rules do not apply to small entities when an agency skips the required review
Congressional Summary
Prove It Act of 2025This bill expands the requirements for federal agency rulemaking with respect to small businesses, organizations, and governmental jurisdictions.Specifically, when conducting an initial regulatory flexibility analysis, agencies must include, where feasible, any reasonably foreseeable indirect costs the proposed rule may impose on small entities.Further, if an agency certifies that an initial regulatory flexibility analysis is not required because the rule will not have a significant economic impact on a substantial number of small entities, the agency must provide such certification within 10 days to the Office of Advocacy of the Small Business Administration. A small entity or group of small entities may petition the Office of Advocacy to review such certification. The petition must include specified information, such as the issues the petitioner believes should be addressed and a proposed solution to the issues raised.If the Office of Advocacy ultimately determines, upon a full review of the petition, that the proposed rule would have a significant economic impact on a substantial number of small entities, the agency promulgating the rule must perform an initial and final regulatory flexibility analysis for the rule. Additionally, if the agency does not participate or assist in the full review process, the finalized rule shall not apply to small entities.The bill also requires agencies to publish, and allow for comments on, all guidance documents with respect to any rule an agency determines is likely to have a significant economic impact on a substantial number of small entities.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-10
- Date Added
- 2026-06-13
- Source
- Congress.gov →
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