The Prove It Act of 2025 would let small businesses and the trade groups that represent them formally challenge federal agencies' decisions that a proposed rule won't significantly impact small entities. Petitions would go to the Chief Counsel for Advocacy at the Small Business Administration, who would conduct a preliminary review and — if the issue has merit — convene a public meeting with the agency and publish a final determination. If the agency fails to attend that meeting, the final rule would not apply to small entities at all. The bill also requires agencies to consider indirect costs (effects on businesses that buy from or sell to directly-regulated entities) and adds an automatic 'cease to be effective' trigger if an agency misses the 10-year periodic review of any rule with significant small-business impact. Republican Sen. Joni Ernst of Iowa introduced it.
Transparency & Accountability
- Small-business petition rights — New SBA petition process to challenge agency 'no significant impact' certifications, with public review meetings
- Agency guidance disclosure — Guidance documents on small-business-impacting rules must be posted to regulations.gov with public comment period
- Federal rule durability — Rules with significant small-business impact cease to be effective if agency misses 10-year periodic 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 potential indirect costs the proposed rule may impose on such 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
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-02-10
- Date Added
- 2026-05-09
- Source
- Congress.gov →
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