Small Business Regulatory Reduction Act of 2025
Summary
The Small Business Regulatory Reduction Act of 2025 aims to reduce 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 modifications to existing ones should not increase the overall regulatory burden on small businesses. The Act 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 law 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 of any new rule or modification to existing rules on small businesses. The annual advocacy report would provide transparency and accountability regarding the regulatory burden on small businesses.
Potential Benefits
- Potentially reduces compliance costs for small businesses.
- May encourage entrepreneurship and new business formation.
- Could lead to increased competitiveness for small businesses.
- Enhances transparency through annual reporting to Congress.
- May incentivize agencies to streamline or eliminate outdated regulations.
Potential Disadvantages
- May limit the ability of federal agencies to address emerging issues through regulation.
- Could lead to under-regulation in certain sectors, potentially harming public safety or the environment.
- The definition of 'cost' may be difficult to quantify and could be manipulated.
- The focus on cost reduction may overshadow other important considerations, such as consumer protection.
- No additional funds are allocated, potentially straining existing SBA resources.
Constitutional Alignment
The Act appears to align with the Constitution, particularly Article 1, Section 1, which grants legislative powers to Congress. Congress has the authority to regulate commerce and establish laws that affect businesses. The Act does not appear to infringe upon any specific constitutional rights or protections. The requirement for reports to Congress aligns with Congress's oversight responsibilities.
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).