Sponsors
The bill increases transparency and gives small businesses faster review and input on agency actions, but it imposes new procedures that will raise agency costs, slow some rulemaking, increase litigation and potential regulatory gaps, and may be underfunded—limiting how fully its benefits are realized.
Small businesses gain a faster, enforceable review and challenge pathway for agency certifications (including a 30-day review timeline and formal SBA/OIRA dispute role), letting affected firms more quickly avoid or contest regulatory obligations.
Agencies must analyze and publish foreseeable indirect costs to small entities (including during 10-year reviews), improving predictability so small firms can better plan for downstream regulatory impacts.
All agency guidance will be publicly posted with formal comment opportunities, giving small businesses clearer access to interpretations and a chance to shape guidance before it is finalized.
Federal agencies will face substantial new administrative burdens and costs (publishing, analyzing indirect impacts, responding to comments, and faster procedural timelines), likely slowing rulemaking and guidance updates, raising taxpayer costs and diverting staff time.
Because the Act prohibits new appropriations for implementation, agencies may lack the resources to administer or enforce the law fully, reducing the effectiveness of its protections and limiting expected benefits for intended recipients.
If agencies fail to participate in the new processes or rules are declared 'ceased to be effective' before agency review, businesses and states could face regulatory gaps or inconsistent application of rules, increasing uncertainty for regulated parties.
Based on analysis of 5 sections of legislative text.
Introduced February 10, 2025 by Joni Ernst · Last progress February 10, 2025
Creates new processes to give small businesses a stronger say when federal agencies certify that a new rule will not have a significant economic impact on them. Agencies would have to analyze and disclose indirect costs to small entities, post and accept comment on guidance tied to impactful rules, and face review by the SBA Chief Counsel for Advocacy when a certification is challenged. If agencies skip required 10-year reviews, the rule can be treated as no longer effective until the agency completes the review. The law also bars any new appropriations specifically to carry out these changes.