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 a small business concern in a fiscal year is not greater than zero. This means the cost of new regulations should be offset by reductions in existing regulatory costs. 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, including the total small business regulatory budgets for each agency.
Expected Effects
If enacted, H.R. 2965 would likely lead to a reduction in the regulatory burden on small businesses. This could be achieved through the repeal or modification of existing regulations or by offsetting the costs of new regulations. The annual report would provide increased transparency regarding the regulatory impact on small businesses.
Potential Benefits
- Reduced regulatory costs for small businesses, potentially freeing up resources for investment and job creation.
- Increased transparency and accountability of federal agencies regarding the impact of their rules on small businesses.
- Streamlined regulatory environment, making it easier for small businesses to comply with regulations.
- Potential for increased competitiveness of small businesses due to reduced regulatory burden.
- Encourages agencies to consider the cost to small businesses when creating or modifying regulations.
Potential Disadvantages
- Potential for unintended consequences if regulations are repealed or modified without careful consideration of their benefits.
- Difficulty in accurately measuring the costs and benefits of regulations, which could lead to disputes and challenges.
- Possible reduction in important protections for consumers, workers, or the environment if regulations are weakened or eliminated.
- Increased administrative burden on the SBA and the Office of Advocacy to comply with the reporting requirements.
- The "net zero" approach may stifle necessary new regulations that protect public safety or address emerging issues.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce. The bill does not infringe upon any specific constitutional rights or liberties. The focus on reducing regulatory burdens on small businesses could be argued to promote the general welfare, as mentioned in the Preamble.
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).