S.495 - Prove It Act of 2025 (119th Congress)
Summary
The "Prove It Act of 2025" aims to increase transparency in federal regulatory decisions that affect small businesses. It amends Title 5 of the United States Code to require agencies to consider indirect costs on small businesses when proposing new rules. The bill also establishes a review process allowing the Small Business Administration's Chief Counsel for Advocacy to review agency certifications regarding the economic impact of proposed rules on small entities.
Expected Effects
The bill is likely to increase scrutiny of federal regulations affecting small businesses. It will provide small businesses with a formal mechanism to challenge agency certifications and potentially require agencies to conduct more thorough regulatory flexibility analyses. This could lead to fewer regulations that unduly burden small businesses.
Potential Benefits
- Increased transparency in federal regulatory decisions.
- Formal mechanism for small businesses to challenge agency certifications.
- Potentially fewer regulations that unduly burden small businesses.
- Requirement for agencies to consider indirect costs on small businesses.
- Enhanced review process by the Small Business Administration's Chief Counsel for Advocacy.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased bureaucracy and delays in the regulatory process.
- Possible increase in workload for the Small Business Administration.
- Risk that the review process could be used to unduly influence or obstruct regulations.
- No additional funds are authorized, potentially straining existing resources.
- The complexity of assessing indirect costs may lead to inconsistent application.
Constitutional Alignment
The bill aligns with the spirit of the Constitution by promoting transparency and accountability in government actions, particularly concerning regulations that affect small businesses. While the Constitution does not explicitly address regulatory flexibility analysis, the bill's focus on protecting economic interests can be viewed as consistent with the general welfare clause. Article 1, Section 8 grants Congress the power to regulate commerce, and this bill seeks to ensure that such regulation is appropriately tailored to minimize burdens on small businesses.
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).