Sponsors (6)
The bill trades lower regulatory costs, clearer reporting, and a common small-business definition for increased risk that protections will be weakened or delayed, costs shifted to others, implementation will be underfunded, and new administrative and legal burdens will arise.
Small-business owners would face lower regulatory compliance costs because agencies must offset new rules so the SBA small-business regulatory budget stays at or below zero.
Small-business owners and Congress get more transparency because agencies must publish annual, agency-disaggregated reports listing rules that affect small businesses.
Small-business owners and the SBA benefit from a standardized definition of “small business” across agencies unless an agency follows a formal consult-and-comment process to adopt an alternate definition.
Small-business owners, workers, and consumers could see weaker or delayed health, safety, labor, or environmental protections because agencies may avoid or soften rules that impose net costs on small businesses.
Program beneficiaries, federal employees, and taxpayers could face delays, gaps, or limited implementation because the Act bars new dedicated federal spending and blocks funding expansion needed to run or enforce provisions.
Taxpayers and other businesses could shoulder higher costs if agencies choose non-regulatory alternatives or exempt small businesses to meet the zero-budget constraint, shifting rather than eliminating burdens.
Based on analysis of 3 sections of legislative text.
Directs SBA to cap its annual small-business regulatory budget at no greater than zero starting FY2026 and requires annual reporting on agency rules affecting small businesses; no new funding authorized.
Requires the Small Business Administration (SBA) to set an annual "small business regulatory budget" at not greater than zero beginning in fiscal year 2026, defines key terms, and directs the SBA Office of Advocacy to report annually to Congress on each federal agency’s small business regulatory costs and rules impacting small firms. The bill also bars any new appropriations to implement the Act, making it a funding restriction rather than an authorization of resources.
Official title: Small Business Regulatory Reduction Act of 2025
Introduced April 17, 2025 by Beth Van Duyne · Last progress December 4, 2025