S. 387 (119th)Bill Overview

Small Business Regulatory Reduction Act

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

Read twice and referred to the Committee on Small Business and Entrepreneurship.

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

The bill requires the Small Business Administration (SBA) Administrator to ensure that, beginning in fiscal year 2026, the "small business regulatory budget" for each small business concern from SBA rulemaking in a fiscal year is not greater than zero. It defines that budget as the cost to a small business from SBA-conducted rulemakings (new, modified, or repealed rules).

Why people may split

Liberals worry zero-cost mandate will block protective regulations

Watch point

Relative to its intended legislative type, this bill creates a substantive legal obligation on the Administrator of the Small Business Administration (to ensure each small business concern's regulatory budget is not greater than 0) and adds a limited recurring reporting requirement.

The bill requires the Small Business Administration (SBA) Administrator to ensure that, beginning in fiscal year 2026, the "small business regulatory budget" for each small business concern from SBA rulemaking in a fiscal year is not greater than zero.

It defines that budget as the cost to a small business from SBA-conducted rulemakings (new, modified, or repealed rules).

The bill also requires annual reports on rules from other federal agencies that impact small businesses, disaggregated by issuing agency.

Passage30/100

Limited scope helps, but an absolute zero-cost mandate with no methodology or exceptions is administratively awkward and politically contestable, reducing prospects for final enactment.

CredibilityMisaligned

Relative to its intended legislative type, this bill creates a substantive legal obligation on the Administrator of the Small Business Administration (to ensure each small business concern's regulatory budget is not greater than 0) and adds a limited recurring reporting requirement. The bill is concise but under-specified: it defines terms and sets a timeline and responsible official but omits the core operational mechanics, fiscal acknowledgment, exception regimes, and enforcement/accountability structures that would be expected for a substantive regulatory constraint of this breadth.

Contention65/100

Liberals worry zero-cost mandate will block protective regulations

02 · What it does

Who stands to gain, and who may push back.

Likely benefits vs burdens50% / 50%
Small businesses · Federal agenciesConsumers · Federal agencies

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

Likely helped
  • Small businessesCaps SBA-imposed regulatory compliance costs, potentially lowering small business administrative and monetary burdens.
  • Potential benefitIncentivizes SBA to avoid or reduce new regulations that would impose direct costs on small firms.
  • Federal agenciesMay increase predictability for small business planning by limiting agency-imposed cost variability.
Likely burdened
  • ConsumersCould preclude SBA rulemaking that delivers consumer, environmental, or workplace protections if costly.
  • Federal agenciesMay shift compliance costs to other federal agencies, state governments, or private sector actors.
  • Potential burdenAmbiguity in cost measurement could trigger litigation and prolonged regulatory uncertainty.
03 · Why people split

Why the argument around this bill splits.

Liberals worry zero-cost mandate will block protective regulations
Progressive25%

This persona would likely view the bill as a constraint on agency rulemaking that could limit protections or supports for workers, consumers, and disadvantaged communities.

They would be concerned that the zero-cost requirement forces the SBA to avoid beneficial regulations or to prioritize cost savings over equity and safety.

They would note the reporting requirement could be used to pressure other agencies, and that the bill provides no funding for implementation.

Likely resistant
Centrist50%

A centrist would see the goal of reducing unnecessary regulatory burdens as reasonable but would worry about the practical and legal feasibility of a strict zero-cost requirement.

They would value the increased transparency from annual reports but seek clarifications on scope, measurement methods, and implementation mechanisms.

They would be concerned about unfunded mandates and potential unintended consequences.

Split reaction
Conservative80%

This persona would generally welcome the bill as a pro-small-business measure that limits regulatory costs and increases oversight of other agencies.

They would view the zero-cost requirement as a strong tool to curb growth of regulatory burdens on small firms.

They might nonetheless prefer a broader application across agencies or stronger enforcement mechanisms.

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 likelihood30/100

Limited scope helps, but an absolute zero-cost mandate with no methodology or exceptions is administratively awkward and politically contestable, reducing prospects for final enactment.

Scope and complexity
52%
Scopemoderate
86%
Complexityhigh
Why this could stall
  • Method for measuring 'cost to a small business' is unspecified
  • How SBA would legally achieve a zero net cost per business
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

Liberals worry zero-cost mandate will block protective regulations

Limited scope helps, but an absolute zero-cost mandate with no methodology or exceptions is administratively awkward and politically contes…

Unlocked analysis

Relative to its intended legislative type, this bill creates a substantive legal obligation on the Administrator of the Small Business Administration (to ensure each small business concern's regulatory budget is not gre…

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
Open full analysis