Sponsors (3)
The bill funds a GAO study that could improve access to public markets and give Congress evidence for capital-formation reforms, but those benefits may come with new regulatory compliance costs for some firms and modest administrative burdens on the GAO.
Investors (including middle-class families and small business owners who invest): the GAO study could lead to policies that lower barriers to public offerings, improving investor access to IPOs and expanding investment opportunities.
Congress and policymakers: they will receive evidence-based recommendations from the GAO study to inform possible regulatory or administrative reforms affecting capital formation.
Small- and medium-sized companies: clearer data on IPO costs will help them compare financing options and make more efficient capital-raising decisions.
Small firms and financial institutions: study findings could prompt new regulatory or disclosure requirements that increase compliance costs and litigation risk for some companies.
GAO staff and federal resources: conducting the study imposes administrative costs and may divert staff time from other audits or priorities.
Based on analysis of 2 sections of legislative text.
Requires GAO, with SEC and FINRA input, to study IPO costs for small- and medium-sized companies and report findings and recommendations to Congress within 360 days.
Directs the Government Accountability Office (GAO) to study the costs that small- and medium-sized companies face when pursuing initial public offerings (IPOs). The GAO must consult with the SEC and FINRA, compare IPO costs to other financing options, analyze market trends and litigation impacts, and deliver findings plus any administrative or legislative recommendations to Congress within 360 days of enactment. The study covers direct and indirect costs (accountants, underwriters, advisors), compliance with securities laws, broker-dealer participation, research availability, and related trends over time. The law itself does not change securities rules or allocate new funding; it requires analysis that could inform future policy or rulemaking.
Introduced May 14, 2025 by James A. Himes · Last progress July 22, 2025