Sponsors (3)
The bill commissions a GAO study to improve understanding of IPO costs and capital formation—potentially aiding firms, investors, and policymakers—while creating modest federal workload costs and risking downstream regulatory compliance costs for some businesses.
Small- and medium-sized companies and potential investors will get clearer data on IPO costs and listing barriers, helping firms choose financing more efficiently and potentially increasing access to public markets for ordinary investors.
Congress will receive evidence-based recommendations from the GAO study to inform possible regulatory or administrative reforms related to capital formation.
Some firms—particularly small businesses and certain financial institutions—could face increased compliance, disclosure, or litigation-related costs if policymakers act on the study with new rules.
The GAO study will impose administrative costs and divert staff time from other audits, creating a modest burden on federal resources and employees.
Based on analysis of 2 sections of legislative text.
Requires GAO, with SEC and FINRA, to study IPO costs for small- and medium-sized companies and report findings and recommendations to Congress within 360 days.
Requires the Government Accountability Office (GAO), working with the SEC and FINRA, to study the costs that small- and medium-sized companies face when pursuing initial public offerings (IPOs). The GAO must analyze direct and indirect costs, compare IPOs to alternative financing, assess impacts on capital formation and retail availability of public securities, identify trends (e.g., number of IPOs, underwriting and advisory costs, broker-dealer participation, research availability, litigation effects), and deliver a report with any administrative or legislative recommendations to Congress within 360 days of enactment.
Official title: To require the Comptroller General of the United States to carry out a study of the costs associated with small- and medium-sized companies to undertake initial public offerings.
Introduced May 14, 2025 by James A. Himes · Last progress July 22, 2025