- Small businessesReduces or prevents new regulatory compliance costs imposed by SBA rulemakings on small businesses.
- Small businessesMay free small business resources for hiring or investment by reducing regulatory expenditures.
- Federal agenciesCreates annual, disaggregated reporting that increases transparency about agency rules affecting small firms.
Small Business Regulatory Reduction Act of 2025
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
The bill directs the SBA Administrator to ensure that the Small Business Administration’s "small business regulatory budget" for each fiscal year beginning in 2026 is not greater than zero.
It defines key terms, requires the SBA Office of Advocacy to submit an annual, agency-disaggregated report listing rules from other federal agencies that impact small businesses and each agency’s total small business regulatory budget, and specifies that no additional funds are authorized to implement the Act.
Low-cost, narrow administrative bill has plausible path but lacks compromise features and may stall in Senate on policy grounds.
Relative to its intended legislative type, this bill establishes a clear substantive requirement and a reporting obligation but lacks the operational detail needed to implement and reconcile the requirement with existing regulatory responsibilities.
Progressives worry about weakened protections; conservatives focus on burden reduction.
Who stands to gain, and who may push back.
- Targeted stakeholdersCould constrain the SBA from issuing rules necessary for program integrity or effective oversight.
- WorkersMay indirectly weaken consumer, worker, or environmental protections if costed rules are avoided.
- Small businessesAmbiguity in calculating "small business regulatory budget" could prompt litigation, delays, and inconsistent applicati…
Why the argument around this bill splits.
Progressives worry about weakened protections; conservatives focus on burden reduction.
Likely sees the bill as a constraint on regulatory action that could weaken protections or public-interest rulemaking affecting small businesses.
Views the provision as a precedent encouraging deregulatory pressure and worried about underfunded reporting duties.
Views the bill as a targeted deregulatory requirement with useful transparency but unclear implementation and fiscal effects.
Sees merit in limiting unnecessary burdens but worries about vagueness and unfunded reporting mandates.
Likely supportive as a measure to prevent SBA-imposed regulatory costs on small businesses and to increase transparency across agencies.
May prefer broader application across agencies.
The path through Congress.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Low-cost, narrow administrative bill has plausible path but lacks compromise features and may stall in Senate on policy grounds.
- How "small business regulatory budget" will be measured and calculated
- Enforceability and legal challenges to mandating a non‑positive regulatory budget
Recent votes on the bill.
Passed
On Passage
Go deeper than the headline read.
Progressives worry about weakened protections; conservatives focus on burden reduction.
Low-cost, narrow administrative bill has plausible path but lacks compromise features and may stall in Senate on policy grounds.
Relative to its intended legislative type, this bill establishes a clear substantive requirement and a reporting obligation but lacks the operational detail needed to implement and reconcile the requirement with existin…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.