H.R.2965 - Small Business Regulatory Reduction Act of 2025 (119th Congress)
Summary
H.R.2965, the Small Business Regulatory Reduction Act of 2025, aims to limit the regulatory burden on small businesses by requiring the Small Business Administration (SBA) to ensure that the small business regulatory budget for each fiscal year is not greater than zero. This means the cost of new regulations and changes to existing ones should not increase the overall regulatory burden on small businesses. The bill also mandates the Chief Counsel for the Office of Advocacy of the SBA to submit an annual report to Congress detailing the impact of federal agency rules on small businesses.
Expected Effects
If enacted, this bill would likely lead to a reduction in the number or scope of new regulations affecting small businesses. Federal agencies would need to carefully consider the cost implications for small businesses when proposing new rules or modifying existing ones. The annual report would provide Congress with information to oversee the regulatory impact on small businesses.
Potential Benefits
- Reduced Regulatory Burden: Small businesses may experience lower compliance costs, freeing up resources for growth and investment.
- Increased Competitiveness: Reduced regulatory costs could make small businesses more competitive with larger firms.
- Greater Transparency: The annual report to Congress would provide increased transparency regarding the impact of federal regulations on small businesses.
- Focus on Cost-Benefit Analysis: Federal agencies would be incentivized to conduct thorough cost-benefit analyses before implementing new regulations.
- Stimulated Innovation: By reducing regulatory hurdles, small businesses may be more likely to pursue innovative ideas and technologies.
Potential Disadvantages
- Potential for Reduced Consumer Protections: A focus on reducing regulatory costs could lead to weaker consumer protections or environmental safeguards.
- Difficulty in Quantifying Regulatory Costs: Accurately measuring the cost of regulations on small businesses can be challenging, potentially leading to inaccurate assessments.
- Limited Scope: The bill primarily focuses on the SBA, potentially overlooking regulatory burdens imposed by other federal agencies.
- Possible Unintended Consequences: Efforts to reduce regulatory costs could have unintended negative consequences on other areas of the economy or society.
- Risk of Regulatory Capture: The emphasis on reducing regulatory burdens could create opportunities for special interests to influence regulatory decisions.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8) by seeking to regulate activities that affect interstate commerce, specifically concerning small businesses. The requirement for reports to Congress also aligns with Congress's oversight responsibilities. However, the bill's impact on other constitutional considerations, such as environmental protection or consumer rights, would depend on the specific regulations affected.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).