Small Business Regulatory Reduction Act of 2025

This proposal, called the Small Business Regulatory Reduction Act of 2025, aims to limit how much federal rules can cost small businesses. It defines a “small business regulatory budget” as the costs to small businesses from federal rules, including new rules and any changes or repeals of existing rules. Starting in fiscal year 2026, the Small Business Administration (SBA) must make sure its own rules do not add any overall costs to small businesses for the year (the total must be zero or less). The SBA’s Office of Advocacy must also issue a yearly report that lists each rule from other federal agencies that affects small businesses and totals the costs by agency, beginning 60 days after the end of fiscal year 2025. The bill does not provide extra money to carry this out.

Key points:

• Who is affected: Small businesses and the SBA.
• What changes: The SBA’s rules cannot increase small businesses’ overall costs for the year; other agencies’ impacts will be tracked and reported each year.
• When: Reports start 60 days after fiscal year 2025 ends; the zero-cost rule for the SBA begins in fiscal year 2026 and continues each year after.