House · HR 1163 · 119th Congress
Prove It Act
Summary
The Prove It Act requires federal agencies to show the indirect costs a new rule may place on small businesses. Small businesses can challenge an agency's claim that a rule won't hurt them. If an agency skips a required review of an older rule, that rule stops being active until the agency acts.
In Favor
Many federal rules quietly raise costs for small businesses that aren't even the main target. This bill gives small businesses a real way to challenge those decisions and forces agencies to show their work. That added check could stop rules from moving forward before the harm to small businesses is fully understood.
Against
The bill gives one small SBA office the power to block or delay rules across the entire federal government. If an agency misses a meeting, its rule simply stops applying to small businesses, which is a steep penalty with wide effects. Critics also warn that a single appointed official could use this power to block health, safety, and environmental protections.
Additional Considerations
Purpose & Problem
Is the problem real and worth federal action?
The bill requires federal agencies to include indirect costs to small businesses in their rule analysis, and lets small businesses challenge an agency's finding that a rule will not affect them significantly.
Scope & Related Provisions
Does it stay focused, or carry unrelated add-ons?
The bill stays focused on small business rule review. It also requires agencies to post guidance documents online and allow public comments on those documents for rules that affect small businesses.
Who Is Affected
Who benefits, and who bears the cost?
Small businesses, business groups, and trade organizations gain new ways to challenge agency rule findings. Federal agencies and the Small Business Administration's Office of Advocacy take on new review and publication duties.
Cost & Funding
Is it affordable and responsibly funded?
The bill states that no additional funds are authorized for carrying out its requirements. Agencies must absorb the costs of new analysis, meetings, publication, and review duties within existing resources.
Risks & Implementation
What could go wrong in practice?
Agencies must complete certifications, meetings, and full reviews within set deadlines. If an agency misses a meeting or fails to assist in a review, the bill states the final rule cannot apply to small businesses.
For the actual bill text, see congress.gov.
AI-generated · Published 7/23/2026