H.R.974 - Small Business Regulatory Reduction Act (119th Congress)
Summary
H.R.974, the Small Business Regulatory Reduction Act, aims to reduce the regulatory burden on small businesses by requiring the Small Business Administration (SBA) to ensure that the regulatory budget for each small business concern is not greater than zero in fiscal year 2026 and subsequent years. The bill also mandates the SBA Administrator to submit an annual report to Congress regarding rules issued by other federal agencies that impact small businesses. No additional funds are authorized to carry out the Act.
Expected Effects
The bill, if enacted, would likely lead to a reduction in the costs imposed on small businesses by SBA rulemakings. This could involve repealing or modifying existing rules to offset the costs of any new regulations. The annual report to Congress would increase transparency regarding the impact of federal regulations on small businesses.
Potential Benefits
- Reduced Regulatory Costs: Small businesses could experience lower costs associated with complying with SBA regulations.
- Increased Transparency: The annual report to Congress would provide greater insight into the regulatory landscape affecting small businesses.
- Potential for Economic Growth: Reduced regulatory burdens could free up resources for small businesses to invest and expand.
- Focus on Small Business Impact: The bill specifically targets the regulatory impact on small businesses, ensuring their concerns are addressed.
- Streamlined Regulations: The act might lead to a review and simplification of existing regulations, making them easier for small businesses to navigate.
Potential Disadvantages
- Limited Scope: The bill only addresses regulations issued by the SBA, not the broader range of federal regulations impacting small businesses.
- Potential for Unintended Consequences: Efforts to reduce regulatory costs could inadvertently weaken important protections or standards.
- Lack of Additional Funding: The absence of additional funding could limit the SBA's ability to effectively implement the Act.
- Reporting Burden: The SBA may face challenges in accurately assessing and reporting the costs of regulations on small businesses.
- Enforcement Challenges: Ensuring that the regulatory budget for each small business concern is not greater than zero could be difficult to enforce in practice.
Constitutional Alignment
The bill appears to align with the spirit of promoting general welfare, as mentioned in the Preamble of the US Constitution, by aiming to reduce regulatory burdens on small businesses. Congress's authority to regulate commerce (Article I, Section 8) provides the basis for legislation affecting businesses. The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).