- Small businessesMay reduce direct compliance costs for small businesses from SBA rulemaking.
- Small businessesCould lower barriers to entry and support small business formation and survival.
- Federal agenciesMight increase regulatory transparency through annual agency-disaggregated rule impact reports.
Small Business Regulatory Reduction Act
Referred to the House Committee on Small Business.
The bill requires the SBA Administrator to ensure that, beginning in fiscal year 2026, the ‘‘small business regulatory budget’’ for each small business concern resulting from SBA rulemaking does not exceed zero dollars in a fiscal year. It defines that budget as the cost to a small business of SBA rulemakings (new, modified, or repealed rules).
Progressives emphasize harms to protections; conservatives emphasize burden reduction.
Relative to its intended legislative type, this bill sets a broad substantive mandate on the Administrator of the Small Business Administration and adds an annual reporting obligation, but it lacks the definitional precision, measurement methodology, implementation procedures, and enforcement/accountability mechanisms that would be expected for a durable statutory constraint on rulemaking costs.
The bill requires the SBA Administrator to ensure that, beginning in fiscal year 2026, the ‘‘small business regulatory budget’’ for each small business concern resulting from SBA rulemaking does not exceed zero dollars in a fiscal year.
It defines that budget as the cost to a small business of SBA rulemakings (new, modified, or repealed rules).
The bill also requires the SBA to submit an annual, agency-disaggregated report on rules from other federal agencies that impact small businesses.
Procedurally simple yet ideologically charged; plausible in a supportive House but unlikely to survive Senate thresholds or executive/ judicial scrutiny without modification.
Relative to its intended legislative type, this bill sets a broad substantive mandate on the Administrator of the Small Business Administration and adds an annual reporting obligation, but it lacks the definitional precision, measurement methodology, implementation procedures, and enforcement/accountability mechanisms that would be expected for a durable statutory constraint on rulemaking costs.
Progressives emphasize harms to protections; conservatives emphasize burden reduction.
Who stands to gain, and who may push back.
These are examples from the analysis, not a ranked list of the most-affected groups.
- Potential burdenCould substantially constrain SBA's ability to issue rules that impose any net costs.
- Small businessesMay prevent rules that provide long-term public benefits but impose short-term costs on small businesses.
- Potential burdenCould impose significant administrative burdens on SBA to calculate per-firm annual regulatory costs.
Why the argument around this bill splits.
Progressives emphasize harms to protections; conservatives emphasize burden reduction.
Likely viewed as a deregulatory constraint that could block necessary SBA protections and oversight.
Concern that a literal zero-cost cap is unworkable and will effectively prevent rules that protect workers, borrowers, or public interest.
The reporting requirement is seen as modest transparency but insufficient to mitigate harms.
Views the goal of reducing excessive regulatory costs as reasonable but sees the bill's zero-dollar mandate as blunt and likely unworkable.
Interested in transparency and cost accountability, but worried about legal, administrative, and programmatic consequences.
Would favor clearer cost-measurement rules and limited exemptions.
Seen as a pro-small-business deregulatory measure that restrains SBA-imposed costs and increases agency accountability.
The zero-cost requirement is attractive as a hard constraint preventing new burdensome rules, and the reporting on other agencies is useful oversight.
May push for firm implementation and enforcement.
The path through Congress.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Procedurally simple yet ideologically charged; plausible in a supportive House but unlikely to survive Senate thresholds or executive/ judicial scrutiny without modification.
- How "cost" per small business is calculated and attributed
- Enforcement mechanism and judicial review pathways
Recent votes on the bill.
No vote history yet
The bill has not accumulated any surfaced votes yet.
Go deeper than the headline read.
Progressives emphasize harms to protections; conservatives emphasize burden reduction.
Procedurally simple yet ideologically charged; plausible in a supportive House but unlikely to survive Senate thresholds or executive/ judi…
Relative to its intended legislative type, this bill sets a broad substantive mandate on the Administrator of the Small Business Administration and adds an annual reporting obligation, but it lacks the definitional prec…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.