H.R. 974 (119th)Bill Overview

Small Business Regulatory Reduction Act

Commerce|Commerce
Cosponsors
Support
Republican
Introduced
Feb 4, 2025
Discussions
Bill Text
Current stageCommittee

Referred to the House Committee on Small Business.

Introduced
Committee
Floor
President
Law
Congressional Activities
01 · The brief
Plain-English summaryWhat this bill actually does

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 It defines that budget as the cost to a small business of SBA rulemakings (new, modified, or repealed rules).

Why people may split

Progressives emphasize harms to protections; conservatives emphasize burden reduction.

Watch point

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It defines that budget as the cost to a small business of SBA rulemakings (new, modified, or repealed rules).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.

Passage25/100

Procedurally simple yet ideologically charged; plausible in a supportive House but unlikely to survive Senate thresholds or executive/ judicial scrutiny without modification.

CredibilityMisaligned

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.

Contention70/100

Progressives emphasize harms to protections; conservatives emphasize burden reduction.

02 · What it does

Who stands to gain, and who may push back.

Likely benefits vs burdens50% / 50%
Small businesses · Federal agenciesSmall businesses

These are examples from the analysis, not a ranked list of the most-affected groups.

Likely helped
  • 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.
Likely burdened
  • 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.
03 · Why people split

Why the argument around this bill splits.

Progressives emphasize harms to protections; conservatives emphasize burden reduction.
Progressive20%

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.

Likely resistant
Centrist55%

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.

Split reaction
Conservative90%

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.

Leans supportive
04 · Can it pass?

The path through Congress.

Introduced

Reached or meaningfully advanced

Committee

Reached or meaningfully advanced

Floor

Still ahead

President

Still ahead

Law

Still ahead

Passage likelihood25/100

Procedurally simple yet ideologically charged; plausible in a supportive House but unlikely to survive Senate thresholds or executive/ judicial scrutiny without modification.

Scope and complexity
52%
Scopemoderate
52%
Complexitymedium
Why this could stall
  • How "cost" per small business is calculated and attributed
  • Enforcement mechanism and judicial review pathways
05 · Recent votes

Recent votes on the bill.

No vote history yet

The bill has not accumulated any surfaced votes yet.

06 · Go deeper

Go deeper than the headline read.

Included on this page

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…

Unlocked analysis

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.

Perspective breakdownsPassage barriersLegislative design reviewStakeholder impact map
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